Innovative automotive manufacturer engages Servispart Consulting to turn around global parts operation
Parts availability increases to best ever 97.4% in period of rapid expansion
Rapid expansion of this well-known automotive OEM in just a few short years into a volume, prestige, car manufacturer is one of the biggest and most exciting success stories in British manufacturing. However the rapid expansion of the manufacturing side of the business created growing pains, not just for their car plants and parts suppliers but also for their own aftermarket parts operation too.
Rapid global growth creates aftermarket parts bottlenecks
Delivery of new car models and expansion into fast-growing emerging markets created a huge increase in the demand for aftermarket parts and in the range of parts to be forecast, held in inventory and supplied. The number of warehouses holding inventory around the globe also increased the logistics volumes to be shipped worldwide. No surprise then that the OEM hit some bottlenecks.
People-centric review identifies pressure points
Using our proprietary 4 P’s review (process, platforms, people and partners) Servispart Consulting analysed the global aftermarket parts operation, identifying the main pressure points. The root causes of inventory bottlenecks and capacity constraints were identified, but Servispart’s people-centric Aftermarket 360™ techniques also uncovered less obvious issues, such as commercial contract and management relationship issues.
Trust and credibility are key to aftermarket parts turnaround
Rebuilding strained relationships between multiple parties is not something that can be accomplished overnight. It took time, but it was a critical step in the turnaround of this car manufacturer’s aftermarket parts business. Once trust and credibility was established with all parties, we were able to help our client and their service partners to find common ground on which to develop and negotiate a sustainable solution. Investment cases were produced to release funds for capacity increases.
Changes were made to operational layouts, shift patterns, delivery windows and operational processes. New facilities were opened and expanded and management teams were strengthened. Monthly review meetings were implemented with a structured agenda and Key Performance Indicators (KPI) established. Improved relationships and closer working was enabled between operations, planning and supplier teams and key staff were involved in the numerous workshops and solution design to increase their level of buy-in.
Incredible results delivered during rapid aftermarket parts expansion
In only eight months, rapid turnaround of our client’s global aftermarket parts operation was achieved, delivering significant business benefits for all parties. Throughout the process the aftermarket parts business continued to expand rapidly, making the below results all the more impressive.
Parts Availability Increase
Backorder Lines Reduced
Vehicles Off Road Reduced
Parts Supply Arrears Reduced
Supplier Grief Lines Cut
Packer Arrears Reduced
Packer WIP Reduced
Throughput Capacity Increase
OEM Business Benefits
The intangible business benefits of all these operational improvements included: