Project Management for Supplier Management - KBC
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Real-World Example

Project Management for Supplier Management

Consistently and comprehensively adhering to internal, company-wide quality standards to ensure the company’s long-term success poses major challenges for many companies. However, ensuring that a supplier complies with agreed-upon quality standards is even more complex. KBC has taken over supplier management for an OEM—with measurable success!

Background

Our client, an automotive manufacturer, has its own quality specifications for its products and the associated processes across the entire value chain. These specifications are closely aligned with industry-wide standards (DIN, VDA, …) and are an integral part of the contractual agreements with suppliers. To ensure that the quality specifications are met, it is necessary to verify their implementation on-site at the suppliers’ facilities and identify any deviations. This is done as part of what are known as “requalifications.” Due to the large number of suppliers, conducting requalifications across the board posed a challenge for our client.

Specific Task Description

  • Increasing the Coverage of On-Site Supplier Audits
  • Identifying Deviations and Agreeing on Corrective Actions
  • Improving supplier performance in terms of on-time delivery and quality

KBC Approach

  • Establishing a metrics-based process for identifying relevant suppliers
  • Tool-based project management for supplier oversight of more than 250 requalifications worldwide per year
  • Use of interactive software to document and track results, including the ability for the supplier to edit the data
  • Conducting retraining sessions (1–2 days on-site per supplier)
  • Regular meetings with the client to keep them informed about the overall progress of the project
  • Integration of results documentation into the customer's existing IT systems

Impact Achieved

Through the targeted selection of relevant suppliers, tool-supported project management, and the use of software that allows suppliers to process requests directly, we were able to minimize the workload for our customers while significantly increasing effectiveness.

Portrait photo of Larissa Fahrmeier, Director at Kemény Boehme Consultants (KBC). A woman with shoulder-length, dark brown curly hair smiles broadly at the camera. She is wearing an elegant white chiffon blouse with black ruffles and a button placket over dark blue dress pants, as well as a delicate silver necklace and a silver wristwatch; both hands are confidently placed on her hips, and she has an energetic and open posture.
Portrait photo of Larissa Fahrmeier, Director at Kemény Boehme Consultants (KBC). A woman with shoulder-length, dark brown curly hair smiles broadly at the camera. She is wearing an elegant white chiffon blouse with black ruffles and a button placket over dark blue dress pants, as well as a delicate silver necklace and a silver wristwatch; both hands are confidently placed on her hips, and she has an energetic and open posture.
Larissa Fahrmeier
Director

Using the approach described, the quality metrics (minutes spent on rework, number of missing parts, sorting operations, delivery quality, etc.) were significantly optimized (up to a 60% improvement), thereby substantially reducing costs for both customers and suppliers.