CASE STUDY

SpendEdge’s Supply Chain Analysis Helps a Leading Auto Parts Manufacturer Realize Annual Savings of US $300,000

Apr 27, 2018

Overview of the global auto parts industry

The global automotive industry is accelerating and facing stiff headwinds, spawned by a highly-congested marketplace, increasing regulatory scrutiny, and extended car ownership lifecycles. Additionally, the increasing demand for high energy density battery, rising demand for an advanced pump for mid-size segments, rising adoption of hybrid powertrains, and increasing automotive production are driving the growth prospects of the global auto parts manufacturing industry. As a result, auto parts manufacturers, OEMs, and other players in the automotive value chain must find ways to extract greater revenue and profit from the auto parts manufacturing space.

However, our analysis of the global automotive industry shows that auto parts manufacturers are facing challenges in terms of:

  • Technological advancements: Today, technology is a major threat to companies operating in the auto parts manufacturing industry. Over the years, the global automotive industry has witnessed rapid transformations with a considerable number of competitors offering a differentiated set of products. Consequently, to stay relevant and updated with the current market scenario, establishments should rely on innovations while offering end products.
  • Fluctuations in brand loyalty: Today, customers have become more informed and confident about their purchasing decisions. Customers are rethinking their buying preferences, and to retain the potential customers, leading companies in the auto parts manufacturing space are planning to redefine their product offerings in the automotive industry.

Due to such challenges, auto parts manufacturers across the globe are leveraging robust supply chain analysis solutions. Supply chain analysis solutions provide business strategists with the latest growth opportunities. Additionally, request free proposalautomotive industry players can accomplish better product differentiation and gain a comprehensive understanding of the core competency of each activity involved in the supply chain.

The Business Challenge and Journey

Client background: One of the world’s leading manufacturer of auto parts for over 20 years.

Client issue: The auto parts manufacturer was in the process of reviewing their distribution center contracts and wanted to optimize their locations and distribution costs without jeopardizing the level of service to their customers. Additionally, they wanted to reduce distribution costs without affecting customer service negatively. Furthermore, the client wanted to review their high safety stock levels caused by forecast procedures and long lead times for transshipment.

The supply chain analysis experts at SpendEdge conducted a comprehensive research and carried out discussions with prominent stakeholders in the automotive industry space to help the client save logistics cost.

Client journey: Gained a holistic approach, including soft aspects such as ocean and air connectivity, transit time, transportation cost, warehouse operating cost, and other business needs of the customers. Additionally, the client simplified the process of comparing their suppliers’ total logistics costs per package and implemented a new solution.

Key questions answered in this supply chain analysis engagement

The Results

SpendEdge’s supply chain analysis engagement helped the client achieve US$700,000 in logistics cost savings for the first year, with subsequent annual savings of US$300,000. Additionally, US$110,000 savings was identified from changing current warehouse location, obtained from lower inbound freight cost and lower security stock needed.

To know more about our supply chain analysis solutions for food and beverage companies

request free proposal


Related Posts:

Recent Case Studies

Industries

Services

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars