Case study - Automotive parts distributor – global sourcing
- Private-equity owned automotive parts distributor
- Recently merged organisation built from a number of regional acquisitions
- Central procurement function with strong OEM relationships but reliance on agents for non-OEM products.
- Identification of potential manufacturers in US, China, India, Japan and Eastern Europe
- Initial shortlisting through RFI based on quality specification
- Inclusion of “value brand” manufacturers from Western Europe
- Tender process to drive optimum pricing
- Product approval process managed in-country.
- Identification of global sources at factory level
- Suppliers shortlisted on certification and experience of export
- Significant margin improvement opportunity through direct sourcing and elimination of intermediaries
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