Case Study: Automotive Supply Chain Optimization
In response to an economic downturn, WGA's client, a global automotive manufacturer, had to switch gears fast to optimize their supply chain. They needed to make immediate and aggressive changes to offset anticipated multiple year double-digit sales declines.
Automotive Industry Practice Overview
The automotive industry is struggling – fundamental changes are occurring, and global economic conditions are requiring automotive executives to rethink strategy. OEMs are moving towards leaner brands, efficient supply chains, the right talent mix and sustainable capacity. OEMs are creating new products and brand strategies in search of profitable growth and expansion into booming vehicle markets around the global.
The key to success in the automotive industry is responding quickly to produce products customers want without passing on the cost of innovation. However, providing a product quickly while delivering what the customer wants and needs is easier said than done and nearly impossible to sustain. Understanding what customers want, today, instantly designing and building a product that clearly fulfills their wants and needs, while delivering the quality and safety of the brand have become make-or-break capabilities.
The automotive industry struggles are compounded by the pressure on the supply chain to continuously reduce their cost position. Unprofitable, broad and expanding brands place suppliers in a position of lower and lower profit margins. Consolidation is likely to continue to reshaping the industry as stakeholders look for value through scale.
WGA’s Automotive Industry expertise
We can provide unique insights and expertise in the Automotive industry to help you address tomorrow’s challenges, today. Our methods, tools and services and can deliver new efficiencies, regardless of your company’s size or complexity.
Our services include:
Automotive OEMs
Automotive Suppliers
- Operations and Brand Strategy
- Simplifying vehicle-platform complexity
- Merger, Acquisition and Divestiture
- Concurrent product development and lean
- Cost base reduction
- Culture Change
- Enterprise Technology optimization
- Program Management
- Operational Excellence
- Simplifying Complexity
- Lean Manufacturing
- Business Turnaround
- Expanded growth strategy
- New market entry analysis
Our network of Automobile accessory plants were experiencing unexpected levels of demand from our major Automotive customers. Our operating costs were out of control, and we were missing delivery dates. Two of our largest customers threated to cancel over $500M dollars in annual contracts. After reaching out to several tier-1 management consulting firms, we selected WGA Consulting based upon their unique, innovative and accelerated approach. In just 2 weeks, WGA had identified a combination of people, culture, process and operating problems, prioritized action plans and temporarily took over executive leader roles at our plants to drive the improvements. In less than 3 months, WGA had resolved our issues and brought our operating costs down by over 32% ($127M/annually) and improved our customer OTIF by 29% to 98.9%/week. WGA is our trusted/go to consulting partner when we need help! Read more
Vice President Manufacturing Operations$19B Global Automobile Accessory Manufacturer
After failed attempts by two other big name consulting firms, I was under pressure from our executive leadership to make our supply chain optimization happen. We needed assistance from a firm that had global reach, could deploy immediately and were experts at identifying improvements and executing changes. I called on WGA to help us turnaround our efforts. WGA delivered on their commitment and helped us realize an additional ($57M/yr) in cost reductions. WGA is excellent to work with and delivers high impact results! Read more
Vice President Supply Chain Operations$178B Global Automobile Manufacturer
After our Telematics project missed key milestone dates and our company was running national commercials that the new technology would be in our cars in 6 months, we called WGA to help. WGA conducted a healthcheck of our Telematics PMO and provided us with a turnaround strategy and plan. We were initially shocked by the problems WGA identified and had to take some personnel actions to achieve our deadlines. WGA’s turnaround strategy was simple to execute and allowed us to deliver our Telematics project 1 month earlier than planned. WGA’s ability to get to the root-cause and their comfort with delivering bad news to our executive leadership reflects their reputation for integrity and professionalism. Read more
Chief Information Officer$89B Automobile ManufacturerAutomotive Industry Case Studies
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