CASE STUDY

SpendEdge’s Supplier Profiling Helps a Renowned Auto Manufacturer Analyze their Supplier Performance

Feb 9, 2018

Overview of the Automotive Industry

In Europe, the automotive industry accounts for 12 million jobs; 8 million jobs in the US and more than 5 million jobs in Japan.

Following the recent economic crisis, the global automotive industry is in a challenging phase with the presence of numerous OEM players offering a considerable number of product offerings. The growth of the industry can be attributed to factors such as the rise of per capita income, global consumer spending, and finance rates. Moreover, the industry is vulnerable to economic shifts with the driving demand for automobile sales in the next five years. As sales shift to continue and environment regulations tighten, leading auto manufacturers are planning to deploy appropriate investments and resources to enhance their business objectives.

Here are some prominent factors that may influence the growth of the industry:

  • Complexity and cost pressure: With the stringent regulatory pressures, leading auto manufacturers are planning to invest highly in research and development to offer reliable solutions to the customers. Moreover, with the growing concern for carbon emissions, businesses are planning to offer reliable solutions to better match the demands of the customers.
  • Digital demands: The present consumers are more connected and are focusing on ease of use in their product offerings. With the relatively growing demand for convenience in their product offerings, prominent organizations are planning to leverage the use of digital resources to increase their product portfolios.

To counter these challenges and meet the supply-demand relationships of the customers, leading organizations are leveraging supplier profiling solutions.request free proposal

The Business Challenge and Our Journey

The client, a prominent auto manufacturer with a considerable number of manufacturing units, spread globally, wanted to reduce procurement and excess inventory costs and deliver quality in the products offered. With the growing supply-demand gap, the client wanted to leverage the use of supplier profiling to reduce the time span for the products and improve the supply chain efficiency. The primary objective of the client was to identify the right supplier from a pool of suppliers and improve the quality of products offered while enhancing economic opportunities. Moreover, the supplier profiling analysis also aims at engaging with the best suppliers and comparing the business efficiency with their competitors.

To profile the most suitable suppliers in the auto manufacturers space, SpendEdge’s supplier profiling experts carried out an extensive research methodology comprising interviews and discussions with prominent stakeholders in the auto manufacturers space. To streamline their supply chain efficiency, the experts also compiled information across a wide array of reliable sources such as paid industry databases, trade shows, and company presentations in auto manufacturers space.

The supplier profiling solution offered by Infiniti helped the prominent auto manufacturer identify and develop a long list of suppliers in terms of their efficiency and revenue. Moreover, through a reliable solution, the client was able to efficiently manage and control their maverick spend and measure and optimize their supplier performance. The supplier profiling solutions also sought ways for the auto manufacturer to segment suppliers based on spend and criticality and evaluate the suppliers in terms of their potential risks.

Fundamental questions answered in this supplier profiling solutions Include:

Supplier profiling


The Results

During the course of the engagement, the supplier profiling solution helped the prominent client develop a SWOT analysis and manage supplier activities based on the criticality of the sourcing complexity. The solution also helped the client gain a performance perspective on various factors ranging from the price, quality, delivery, and management.


To know more about our supplier profiling solutions in the auto manufacturers space

request free proposal


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