Project
Duration: 6 months
Role in the project: Operations/SCM Manager responsible for material availability and production supply
Geographic scope: international/global – Germany/Hungary/Moldova/China
Company
Industry: Automotive supply industry
Revenue: EUR 45 million
Number of employees: 750 worldwide
Description
An international automotive supplier was facing a challenging operational situation. The supply chain was not sufficiently stable, critical materials were in short supply, delivery deadlines were at risk, and the operational interfaces between planning, scheduling, logistics, production, procurement, and supplier management were not consistently synchronized.
The goal of the engagement was to stabilize the entire operational value chain, with a direct impact on customer deliveries, production supply, delivery performance, and financial stability. The focus was on operations: clear priorities, transparent bottleneck management, robust planning and escalation procedures, improved production supply, inventory control, and measurable improvements in delivery capability.
Purchasing and supplier management were important factors, but they were not the primary focus. The focus was on the company’s operational performance: from demand and production planning, through material availability, the pull principle, internal logistics, and supplier management, to the on-time supply of production and delivery to customers.
Measures
- Analysis of operational bottlenecks along the value chain: planning, scheduling, material procurement, logistics, production, and the supplier base
- Establishment of a transparent bottleneck management system for critical materials, at-risk production orders, and customer delivery dates
- Stabilizing material availability to ensure a steady supply for production
- Introduction of the pull principle for demand-driven management of material flow, replenishment, and production supply
- Improving coordination between production planning, scheduling, logistics, purchasing, supplier management, and production
- Prioritizing critical parts, suppliers, and production requirements based on their operational impact on production, customer deliveries, and profitability
- Introduction or further development of operational KPIs to manage material availability, backorders, delivery performance, inventory levels, and production risks
- Establishing regular shop floor/operations routines to manage bottlenecks, corrective actions, and escalations
- Structured tracking of actions with clear responsibilities, deadlines, and escalation procedures
- Optimizing inventory levels with a focus on supply security, production stability, and cash flow
- Leadership, motivation, and alignment of the teams involved with shared operational goals: production supply, delivery capability, customer fulfillment, and financial stability
Team
Leadership and coordination of cross-functional teams from Operations, Production Planning, Scheduling, Logistics, Materials Management, Purchasing, Supplier Management, and Production.
The focus was on operationally aligning the organization: moving away from individual functional interests and toward a unified approach to managing material availability, production supply, delivery capability, and customer satisfaction.
Reporting
Regular reporting to senior management / operations management.
The reporting focused on production supply, material availability, critical bottlenecks, delivery capability, backlogs, inventory trends, escalations, progress on corrective actions, customer risks, and the impact on operating results.
Interfaces
- Production
- Sales
- Quality assurance
- Finance & Controlling
- Development / Engineering
- Human Resources
- IT
- Suppliers
Success
- Stabilizing the production supply chain through improved material availability
- Greater transparency regarding bottlenecks, production risks, and critical delivery dates
- Introduction of the pull principle for demand-driven management of material flow and production supply
- Improved operational coordination between planning, scheduling, logistics, procurement, supplier management, and production
- Implementation of clear operational procedures and escalation protocols
- Better prioritization of critical materials, suppliers, and production requirements
- Reducing operational firefighting through structured action management
- Improving our ability to deliver to customers
- Strengthening cross-functional collaboration throughout the operational value chain
- The organization’s long-term focus on production planning, customer fulfillment, and operational stability
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