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Automotive | Supply Chain Management

On-Site Supplier Management: Ensuring Quality and Stabilizing Supply at a Japanese Tier 1 Supplier

A Japanese Tier 1 supplier with a European facility was experiencing an ongoing escalation with a leading German automaker: poor component quality, an unstable supply of parts, and a lack of transparency regarding agreed-upon measures were jeopardizing the supplier relationship. KBC took over on-site supplier support at the supplier’s plant, established robust control and reporting structures, and guided the de-escalation process through to sustainable stabilization—operationally, not merely in an advisory capacity.

Supplier Management by the Numbers

Reducing the Number of Rejected Components
Achieving the required safety stock level at the OEM 
Cross-Functional KPI Dashboard

The Customer

Japanese Tier 1 supplier in the automotive industry with a European location

The client is an internationally active company in the automotive supply industry with production sites in Europe. As a Tier 1 supplier, the company directly supplies a leading German automaker with glass-fiber-reinforced plastic structural components for vehicle body-in-white.  

At the time the project began, the supplier was facing a critical escalation: The components it delivered had a PPM rate of 1,522—far above the level accepted by the OEM. At the same time, the automaker had not reached its safety stock level, which jeopardized supply security. A lack of communication structures and inadequate control mechanisms between the OEM and the supplier further exacerbated the situation. 

In addition, there was no functional KPI dashboard for visualizing supply and quality metrics, nor was there a structured feedback and monitoring process at the shop floor level that could have sustainably strengthened employees’ understanding of quality. 

The Project

On-site Supplier Management to Ensure Quality and Supply Stability

The goal was to sustainably improve component quality, stabilize the supply of parts, and resolve the escalation with the OEM. To this end, KBC provided on-site support directly at the supplier’s plant and managed all communication between the OEM and the supplier. 

Our team designed and implemented a quarantine process, including a digital reporting tool and a tool for querying the quarantine status of components. At the same time, we developed a slip-through feedback system that identified quality defects early on and enabled targeted feedback at the shop floor level. A comprehensive KPI dashboard for visualizing supply and quality metrics was finalized and implemented into ongoing operations. 

KBC not only handled the conceptual design of the content but also ensured the operational implementation and monitoring of agreed-upon measures on site—thereby laying the foundation for sustainable de-escalation.

Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A bald man wearing square dark glasses, smiling warmly at the camera. He is wearing a navy blue jacket over a white shirt, along with a brown leather belt and a silver wristwatch; both hands are in his pants pockets.
Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A bald man wearing square dark glasses, smiling warmly at the camera. He is wearing a navy blue jacket over a white shirt, along with a brown leather belt and a silver wristwatch; both hands are in his pants pockets.

This Is How We View Supplier Management

For us, supplier management isn’t just about documenting mistakes—it’s about understanding the root causes and working with the supplier to resolve them permanently. Those who merely monitor create mistrust. Those who work alongside the supplier on-site drive change.

Martin Betz, Partner at KBC

The result

De-escalation Through Measurable Improvements in Quality and Care

KBC’s on-site supplier support culminated in a complete de-escalation: The PPM rate of rejected components was reduced from 1,522 to 721 PPM—a 54 percent improvement. The safety stock level required by the OEM was achieved 100 percent, thereby restoring supply security on a sustainable basis. 

The introduction of the quarantine process and the cross-functional KPI dashboard created a level of transparency regarding quality and supply metrics that did not previously exist. Supply risks were identified early and mitigated through improved monitoring. 

The slip-through feedback system had a lasting impact on employees’ understanding of quality at the shop floor level—and thus laid the foundation for continuous quality improvement even after the project was completed. 

Other Projects That Make a Difference

Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A man with a shaved head and distinctive dark rectangular glasses, smiling warmly at the camera. He is wearing a dark blue suit with a matching jacket and pants over a light blue shirt without a tie, a cognac-colored leather belt, and a silver wristwatch on his right wrist; both hands are in his pants pockets, and he has an upright and confident posture.
Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A man with a shaved head and distinctive dark rectangular glasses, smiling warmly at the camera. He is wearing a dark blue suit with a matching jacket and pants over a light blue shirt without a tie, a cognac-colored leather belt, and a silver wristwatch on his right wrist; both hands are in his pants pockets, and he has an upright and confident posture.
Martin Betz
Partner

Facing a similar challenge? Talk to us

Whether you need support with on-site supplier management, quality assurance, or escalation management: In a brief discussion, we’ll determine which steps make sense and how KBC— an international boutique consulting firm based in Munich —can help you move forward. 

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