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| A large Tier -1 automotive supplier was interested in reducing logistics costs by sourcing product closer to their assembly facilities in Mexico. Steel prices had risen over 70% in the previous year and transport costs were very high due to demand for commodities in China as well as high oil prices. |
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find suppliers for two commodities within Mexico ($10MM/yr spend, 50 part numbers) |
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qualify these suppliers to ensure their ability to deliver on time and with 0 PPM |
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gather quotations from these suppliers |
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Utilizing the SOURCE Global® network we built a list of over 30 potential suppliers. Through a mixture of on-site visits and reference checking this list was narrowed down to roughly 8 suppliers. These suppliers were then given a preliminary audit of their capabilities which further reduced the field to two candidates. These suppliers were then given a full ISO quality audit and presented to the client.
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During this time quotations for a bundle of parts were sought and compared with quotations on similar products from India and China to ensure competitiveness.
Identified potential cost reduction of about 10-20%. |
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Client was able to expand network for supplier identification and qualification |
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Provided unbiased buyer-centric evaluation of suppliers |
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Client received full evaluation of numerous suppliers focusing future supplier searches |
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