The Situation

Our Client is a first-tier auto part manufacturer and they reached out to X-PM to propose a team of experienced transition supply chain professionals to immediately fill critical functions to operate within the client’s supply chain process and to shorten the lead-time for recovering to a normal situation.
X-PM had to ensure not only to fill the critical functions immediately but to improve and identify throughout the initial phase the short and medium-term to avoid future similar situations.

The focus in the automotive industry is timely deliveries. Our client was faced with a critical situation in addressing a supply chain challenge to be able to improve its service level whilst urgently recovering from a declining situation. This mission was for 3 months.

The Solution

Directly reporting to the Plant Director and dotted line to the Division Director, the X-PM transition manager supported by his operational team, was solely responsible to lead and direct the supply chain to ensure that all aspects of Procurement, Factory Loading, Warehousing, and all its Planning activity are executed with precision and integrity, on-time and in-full. Particular attention was paid to the suppliers’ capacity to meet the plant’s forecast and actual urgent demand.

The main responsibilities of the X-PM transition manager were to:

  • Organize and execute a rescue action plan to recover from an emergency situation
  • Lead a team of supply chain executives to ensure timely delivery of supplies to the factory to meet customers’ demand including interactions with Procurement, Finance, HR, Manufacturing, IT(SAP) and Sales.
  • Supervise and pilot all supply chain operations with a close follow-up on the resolution of the issues (frequency: daily / bi-daily)
  • Ensure full and complete communication of current performance and future trends and to achieve a satisfactory solution to any issues by adopting a preventive approach within the business
  • Identify improvement actions to be implemented in the short/midterm
  • Establish clear expectations to ensure that all concerned parties (internal/external) adhere and comply with the new work practices

The Result

  • -50% Reduction of stock-outs for domestic parts and 90% for overseas
  • -23% excess inventory reduction in 3 months
  • +60% supplier on-time delivery improvement
  • +30% data accuracy improvement in SAP

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