Driving Efficiency And Cost Savings For An Automotive Parts Manufacturer
About Client
An automotive parts manufacturer based in the USA, with a global presence spanning multiple continents.
They offer various parts and components, including engine parts, brakes, suspension, steering, electrical, and other accessories.
With over two decades of experience in the industry, the company has established a strong reputation for quality, reliability, and innovation in its products and services.
Problem STATEMENT
The company faced several challenges in managing its procurement process, some of them were:
Difficulty in tracking and monitoring orders and shipments, spotting delays and bottlenecks, and managing inventory levels.
Heavy reliance on multiple suppliers and vendors, made it challenging for our client to track their performance, negotiate contracts, and manage relationships effectively.
Limited insights into their spending patterns made it difficult for them to identify cost-saving opportunities in the entire procurement process.
Manual forecasting process that relied on unstructured data, which resulted in inaccurate demand forecasts and inventory shortages.
Spending a lot of time on manual processes such as data entry, reporting, and analysis, which took away from their time to focus on strategic activities.
The operations generated a vast amount of data, which was collected manually, making it time-consuming and prone to errors. The data was not leveraged to its full potential in making informed decisions.
Solution
To address these challenges, we developed a procurement analytics dashboard that provided real-time visibility into the procurement operations and enabled the procurement team to make data-driven decisions.
Supplier performance metrics: We continuously analyzed the supplier performance metrics such as on-time delivery, quality, and cost, enabling the client to identify the bottlenecks in the supply chain.
Inventory management: The procurement analytics dashboard provided real-time visibility into inventory levels and allowed our client to identify potential shortages and excess inventory, enabling them to take corrective action.
Customizable reports: The dashboard allowed the client to create custom reports, enabling them to analyze the spend analytics by category, supplier, location, and other related parameters.
Automated forecasting: Our experts devised and incorporated machine learning algorithms to forecast demand and inventory levels, reducing the reliance on manual processes and improving forecast accuracy.
Automated reporting: Real-time automated reports on procurement performance metrics reduced huge amounts of time the procurement team was otherwise spent on manual reporting.
Overall, we encouraged the cross-functional collaboration of decision-making with real-time information.
Business Impact
The procurement analytics dashboard had a significant impact on the client’s business, leading to many visible outcomes:
The dashboard enabled the procurement team to identify cost-saving opportunities and negotiate better contracts with suppliers, resulting in a 10% reduction in procurement costs.
The client was able to identify underperforming suppliers and take corrective action, leading to a 13% improvement in supplier on-time delivery.
Our solution enabled the client to identify excess inventory and take corrective action, leading to a 10% reduction in inventory carrying costs.
The automated forecasting based on our machine learning model led to a 12% improvement in forecast accuracy, reducing inventory shortages and improving customer satisfaction.
The real-time visual dashboards and reports led to a 16% reduction in time spent on manual reporting, allowing the procurement team to focus on strategic activities.
Overall, the procurement analytics reporting had a positive impact on the client’s bottom line, leading to an overall reduction in procurement costs and an increase in operational efficiency.
Industry
Manufacturing & Industrial Engineering
Services Used
Artificial Intelligence (AI),Business Intelligence (BI),Data Analytics,Digital Transformation,Predictive Analytics,Recommendations and Insights
Region
North America
Function/Department
Manufacturing & Production,Procurement and Purchasing
