In the automotive industry, identifying and choosing the right supplier is like selecting a novel from a huge pile of books. The choice of the businesses will revolve around a wide array of factors such as the quality of the service rendered, the reliability of the service, and finally the price. With the rising adoption of cars among millennials, the automotive industry players are increasing their production capacity to meet the demand of markets such as India and China. In the manufacturing industry, supplier selection becomes a major concern for most stakeholders. To profile the relevant suppliers and enter niche market segments, renowned manufacturers in the automotive industry are facing the need for effective solutions that aid in the supplier selection process. In the automotive industry, supplier selection helps leading businesses identify, evaluate, and contact potential suppliers and adequately allocate financial resources to enhance the business performance.
In this intensively competitive global economy, it becomes critical for companies to develop a good relationship with existing customers and discover new suppliers. To identify and profile the right suppliers, leading businesses in the automotive industry space are approaching renowned solution providers like Infiniti. Infiniti’s supplier selection process helps companies streamline suppliers and significantly reduce the production costs to improve production capacity.
The Business Challenge
A leading automotive industry client wanted to identify new suppliers to gain a cost advantage over existing suppliers. The client wanted to reduce their production costs and offer top-notch quality products to the customers to stay relevant in the automotive industry. Moreover, the automotive manufacturer wanted to seek ways to deal with competition, reduce disruption related to the supply, and meet specific business objectives. The primary concern of the client was to verify the suppliers’ ability to meet the buyer’s requirements.
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To improve the delivery performance, Infiniti’s supplier selection experts carried out both qualitative and quantitative research with leading stakeholders in the automotive industry. The stakeholders include members of research and development, purchasing, marketing, and quality assurance teams. Additionally, to assess the supplier’s financial status, the supplier selection experts at Infiniti further compiled information across a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.
The Solution Offered and its Business Impact
With the help of Infiniti’s supplier selection and profiling engagement, the automotive industry client was able to spur their production capacities and improve lead times. As the automotive company was concerned with maintaining high standards, the supplier selection process helped the client ensure that the quality of the standards is met and the supplier is competent enough to meet all expectations.
- Improved the relationship with the current suppliers and selected new prospective suppliers
- Efficiently selected the right suppliers and built a strong brand reputation
- Measured supplier performance and delivered top-quality products to the customers