Lean Procurement and Supply Chain Management Consulting


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Lean Procurement and Supply Chain Management Consulting

  1. 1. we keep you ahead consulting Lean Procurement and Supply Chain Management Consulting The Experts on Procurement and Supply Chain Management
  2. 2. Global supply chain in focus MBtech Consulting advises companies The highest satisfaction rates recor- Our competence in Lean Procurement & that would like to structure and improve ded by internal and external procure- Supply Chain Management extends over their global process landscape and system ment and logistics indicators clients four topic areas: topography across the entire automotive are in the areas of cost, quality, and time supply chain. In this process we consis- Procurement and Material Cost tently follow “lean enterprise” principles to Worldwide procurement from the best Management achieve a lean organization, supporting our suppliers at the best prices - we include Supplier Management clients along the way. At the same time our in this the areas of development, logis- Supply Chain Management integrated approach goes far beyond mere tics, quality, and supply in order to achieve Emerging Markets Support optimization of production along the lines sustainable optimal production costs of lean manufacturing. An integrated supplier management net- In Procurement & Supply Chain Manage- work from the perspectives of time, costs, ment we consider the concept “lean” to and quality – a transparent and stringent comprise four essential aspects: liaison with suppliers is essential Lean supply chains from tier N to the client - with low inventory levels yet high supply flexibility and pull management
  3. 3. MBtech Consulting is located in Sindelfingen (Germany) Sindelfingen Detroit (USA) and Detroit Shanghai Shanghai (China). Competent, team-focused, and pragmatic – using local consultants, we assist compa- nies with global projects concerning Lean Procurement & Supply Chain Management. 02 03
  4. 4. Procurement and Material Cost Management Nowadays gradual globalization and in- In addition we help our clients to optimize Project case study: creasing cost pressure constantly present their production costs across the entire Optimization of production costs at an companies in the automotive industry with product life cycle – from the strategy and automotive manufacturer fresh challenges. It is only with effective design phase through the series phase to global procurement processes and a tailor post-series supply. We develop, jointly with Assisted by MBtech Consulting in this made procurement organization that they the supplier, indicators for integrated and project a cross-functional team ana- are able to organize their procurement ef- sustainable cost of production optimization lyzed selected vehicle modules (e. g. ficiently and effectively, and thus remain in crossfunctional teams with staff from headliner) from production and pro- competitive. development, procurement, logistics, quali- cess perspectives. On the basis of a ty, production. Based on a total cost of product benchmark, the team identi- We assist our clients in the design and im- ownership approach, we examine how pro- fied a potential for optimization both in plementation of best-in-class procurement duction costs can be optimized – without the product (e. g. by evaluating existing processes and procurement organizations. losing sight of quality and product functio- module functions from the perspective In our experience, lean procurement pro- nality in the process. At the same time we of the customer, derived from a target cesses are essential to fast and flexible pro- draw on the broad technical competence of function profile) and also in its process- curement organization. Based on structured the MBtech Group which provides perfect es processing (e. g. by benchmarking global commodity management, standard back-up to our consulting expertise. the assembly processes). In the con- procurement processes (e. g. selection of text of the project – independent of the suppliers) and special processes (e. g. inte- vehicle module in question – a sustain- grated risk management) are introduced in able reduction in production costs was a consistent and logical way. achieved.
  5. 5. Supplier Management The increasing complexity of supplier re- Project case study: lationships across the automotive supply Proactive supplier development at an chain requires sophisticated and integrat- automotive supplier ed supplier management that detects and solves critical delivery situations at an early In an emerging market MBtech Con- stage. sulting advised an automotive sup- plier on integrated development. After For us supplier development is a built on conducting an audit to identify weak and underpinned by onsite analysis, iden- points in production and processes, tifying possible production and process we agreed, jointly with the supplier, on problems with the supplier, and solving production, procurement, quality, and them with the supplier as part of a team. logistics procedures. We tracked their In addition to short-term assistance along implementation using a stringent per- the lines of reactive supplier development in collaboration with the supplier, and we formance measurement in the form of we also advise our clients on proactive attempt to detect and eliminate them at an control loops. This project guaranteed supplier development with the objective of early stage. that goods would be delivered by the becoming “fit for supply” when the time is target date. right. This calls for a fair amount of techni- Integrated supplier management is however cal expertise. With increasing globalization far more than supplier development. We use We also advise on the structuring and imple- of the supplier base an increasing emphasis it to structure and implement, jointly with mentation of supplier risk management to is placed on intercultural competence. Our our clients, the organization and processes identify critical suppliers at an early stage. global positioning with the maxim “Act glob- necessary for effective supplier manage- Our consulting practice employs a wide ally – think locally” is therefore an important ment with the objective of “one face to the range of supplier management methods. sucess factor. Along with advice on imple- supplier”. This also includes extensive de- mentation, we employ a stringent maturity velopment of the supplier base. We assist management model to achieve transpar- our clients for example with structured se- ency with regard to possible weak points lection and supplier assessment. 04 05
  6. 6. Supply Chain Management Global supply chains present automotive ated both quantitatively (benchmarking Project case study manufacturers and transportation firms with the transport conditions) and qualitatively. Global supply chain optimization for the challenge of achieving set deadlines and Subsequent implementation is ensured by an automotive manufacturer’s vehicle quality and cost targets within a complex consistent adherence to the documented module up to tier level 2 environment. These objectives then lead to procedures. demands for a lean supply chain transpar- In this project a team of representa- ency, agility, and flexibility. These demands In in-plant logistics we structure jointly with tives from an automotive manufac- can be met within the framework of a global our clients best-in-class logistics systems turer, the tier 1 supplier and MBtech supply chain management approach. at a production site. Examination of the in- Consulting optimized the supply chain tegrated supply chain in the process usually for a vehicle module. The European site Using a comprehensive supply chain man- necessitates looking beyond factory bound- of the tier 1 supplier who received sup- agement toolbox we structure and optimize aries to the supplier. Structuring of “lean” plies from many tier 2 suppliers in the processes in inbound, in-plant, and out- in-plant logistics starts with “the place of European and Asian region, was de- bound logistics according to lean principles. added value” (e. g. from assembly site on livering to a manufacturing site in the In doing so we keep sight of the overriding the assembly line) using a value stream NAFTA region. By eliminating interme- logistics strategy that we have determined mapping methodology. diary steps, optimizing the global trans- jointly with our clients. port route, and changing the mode of In outbound and spare part logistics we op- transportation, this project was able to In inbound logistics we advise for example timize distribution logistics through to the considerably reduce logistics costs per on design and optimization of global sup- end customer jointly with our clients. vehicle module. ply chains across several tier levels. After visualization of the existing supply chain Overall order processing – from program and identification of possible weak points, and capacity planning to product delivery a target supply chain is developed in team- to the end customer – is also part of our work with the supplier which is then evalu- integrated supply chain management ap- proach.
  7. 7. Emerging Markets Support Increasingly, automotive manufacturers and suppliers are concentrating on procure- ment, market development, and production of parts, components, and also modules in emerging markets. We advise companies on the selection of suitable strategies for offshoring and near- shoring approaches, procurement, and product localization in emerging markets. Starting with corporate strategy and discus- sion of the company’s core competencies, we appraise make-or-buy scenarios in the global context jointly with our clients. Next Project case study: step we assist in the selection of suitable Local content management at an intellectual property and the industriali- markets, regions, and suppliers for produc- automotive manufacturer in China ziation of suppliers were resolved in the tion material and services. This is achieved strategy phase of the project. In the im- by employing an experience-based toolbox MBtech Consulting advised an automotive plementation phase the focus was on the to implement globalization projects. These manufacturer on local content manage- management of the localization process contain tools designed for local content ment from strategy definition to imple- with optimization of supplier selection, and intellectual property management, on menting the localiziation of components. the supply chain, and the development supplier selection and supplier develop- Together with our client we optimized of suppliers. The consulting approach of ment, and for global management of supply the proportion of local suppliers country MBtech Consulting enabled the complex chains. compared to the import of manufactured process of localization to be broken into products (local content mix) to achie- manageable substeps, and the results to ve local content objectives. Questions be quantified for the clients. such as clarification of the protection of 06 07
  8. 8. we keep you ahead Contact: vehicle engineering We will gladly provide you with further information. powertrain solutions MBtech Consulting GmbH electronics solutions Posener Straße 1 71065 Sindelfingen consulting Operations Strategy Consulting Germany Technology and Innovation Consulting Process Consulting Fon +49 (0)7031 686 4756 Project Consulting and Management Fax +49 (0)7031 686 4644 Business Academy info@mbtech-group.com www.mbtech-group.com MBtech Consulting GmbH is a company of the MBtech Group within the Daimler Group. 05-S200809A01-EN