Approach
Conducted a tailored spend diagnostic leveraging spend data from multiple MRP systems, including the analysis and categorization of $3B of addressable spend
Executed a rigorous strategic sourcing process in over multiple waves covering direct materials and logistics/transportation services:
Wave 1: Fabrications (Stampings, Weldments, Raw Tubing, Exhaust, Spring/Wire, Heat Shield), Plastics (Resins, Injection Molding and Non-Injection Molding), Driveline (Gearcases (Transmissions), Front Drives, Half Shafts, Prop Shafts, Jack Shafts), Casting and Machining (Crankcases, Cylinders, Heads, General HPDC, LPDC, Investment, Ductile), Logistics (Deck, Dry Van, Intermodal, LTL, Ocean), Batteries (Starters and Traction)
Wave 2: Wheels, Tires and Rubber (Cast Aluminum and Steel Wheels, Tires, General rubber, Belts, Tracks), Powertrain (Crankshafts, Gears, Throttle Body, Bearings, Pistons, Oil/Water Pumps, Starters and Pinions, Camp Shaft/Decomp, Connecting Rods, Cam Drive, Turbochargers, Fuel Rails, Valves, Clutches), Electrical (Wire Harnesses, Winch Systems, Electrical Power Steering, Sensors, Switches, Mechatronic Rider Controls, Lighting Solutions, Audio Systems, Electrical Controllers, Alternators/Stators/Flywheels, Voltage Regulators, Starter Solenoids, Ignition Coils)
Utilized Dedicated full-time cross functional teams: Purchasing, Engineering, Quality, Manufacturing, Aftermarket, Finance
Led Collaborative effort, ensuring contributions from all plant locations ensuring support and buy-in from key stakeholders
Results
Delivered $165M (~12.4%) in annualized savings across 2 waves of categories. Wave 3 on target to add an additional $65+M (~14%)
Non-Price Benefits:
Over 40% Supplier Rationalization
Improved quality (lower PPM guarantees)
Better on-time-delivery: During the pandemic, selected suppliers out-performed other incumbents on
delivery and quality by 50% and 40%, respectively
Established contracts with all strategic suppliers
Improved Service Part Pricing Structure
Transparent Pricing Modelthat eliminated the “New Part Tax”
Working Capital improvement (payment terms and inventory)
Transition support
Institutionalized approach and key learnings in order to ensure long-term sustainability. Trained over 140 professionals in Sourcing Methodology, Effective Presentations, Site Visits, and Negotiations.
