Business Issue

Reduce piece cost in the gray iron castings segment

Challenge

Complexity (90 suppliers, 750 parts (rough and finished)

Approach

AKOYA was used to identify part cost savings opportunities, group the opportunities by supplier and buyer, identify highly comparable parts at a lower price, and create negotiation packages for each buyer

Results

$9M in annual savings identified (from $115M in spend) within 120 days with $4M in annual savings on contract within 6 months

Business Issue

Create world class precision-pins supply-base

Challenge

Complexity (over 12,000 parts and 300 suppliers)

Approach

AKOYA was used to identify the top 40 suppliers, perform a make-vs.-buy analysis, create sourcing packages, identify the best-fit supplier for the packages, and align all target prices

Results

$3 Million annual cost reduction recognized in target price alignment, volume discounts, management costs, quality and delivery improvements

Business Issue

Too many material specifications and foundry capacity issues

Challenge

Complexity (15,000 cast parts, multi-tiered supply base of 400 suppliers, over 100 base material specifications)

Approach

AKOYA was used to visualize material proliferation within part classes, focus engineering simplification efforts, and create a foundry sourcing matrix which aligned a foundry’s capabilities and capacity to specific material types

Results

Expected 30% reduction in part/spec/foundry complexity

Business Issue

A buyer claims overwork and asks the Purchasing Director for a workload reduction

Challenge

The size and complexity of the department spans different locations and includes raw materials and parts purchasing so it can be difficult to assess realistically.

Approach

Using the Buyer Summary and Buyer Detail Charts, the Purchasing Director can quickly see each buyer’s spend and number of suppliers, then assess which suppliers to remove from the Buyers portfolio to reduce her workload.

Results

The Purchasing Director realigned her departmental workload to be more balanced among her buyers based on real time purchasing data.

Business Issue

Management has asked the Purchasing Director to rationalize suppliers for a specific facility.

Challenge

Purchasing parts from many locations around the world can add expense to the cost of parts and raw materials.

Approach

Using the Part Sourcing by Facility Detail Chart, the Purchasing team can quickly assess the number of parts per country are sourcing for the specific facility.

Results

The Purchasing Director was easily able to assess spend, part count and supplier count per region, giving management a full report on potential supplier rationalization.

Business Issue

Management has asked the Purchasing Director to rationalize suppliers

Challenge

The complexity of multiple plants and suppliers around the world make it difficult to realistically assess which suppliers to rationalize.

Approach

The Purchasing Director uses the Supplier Spend by Facility Chart to assess spend and supplier number per facility. Then she can see the detail for any one supplier using the Supplier Count by Facility Chart.

Results

The Purchasing Director was quickly able to report back to management with recommendations on which suppliers should be rationalized based on actual purchasing and parts data.

Business Issue

A supplying region is experiencing unrest, bringing the reliability of parts or raw materials from that region into question.

Challenge

If the supply chain is interrupted due to unrest, production can be slowed or even stopped, causing loss of revenue.

Approach

Using the Spend Segment Map, the Procurement team quickly sees the number of parts per category and the annual spend associated with the region in question.

Results

The Spend Segment Map itself is used to visually show management the importance of the region to the company’s supply chain. Because of the region’s unrest, the supply purchase is transferred to a safer region.

Business Issue

The Purchasing Director requests a quick summary of suppliers in a specific country including spend, part count and annual EAU.

Challenge

Pulling this data together quickly can be difficult, especially when juggling a multitude of global suppliers.

Approach

Using the Supplier Detail Chart, the Purchasing team quickly assessed the suppliers from the requested country, including part count, spend, EAU and PPM.

Results

A complete report of the specific country’s suppliers was given to the Purchasing Director within the hour.

Business Issue

Sales projections for the next three years show a significant increase.

Challenge

With increasing demand for parts and materials, it is important to be able to secure the supply chain for the future.

Approach

The Buyer used Akoya’s Supplier Management Dashboard to view all suppliers and assess their cost index. Next, she investigated the cost index for specific parts and suppliers, comparing them to similar parts and suppliers.

Results

The Buyer was able to quickly assess which suppliers were viable and find realistic alternative suppliers to assure the future supply chain.

Business Issue

The Director of Purchasing asked a Buyer to prepare for an annual review with a specific supplier.

Challenge

Buyers need relevant competitive pricing data  to successfully negotiate in annual supplier reviews.

Approach

Using the Akoya Global Supplier List, the Buyer reviews all parts purchased from the supplier. By viewing more detail in the Supplier Portfolio Chart, the buyer can see the price index for each part, view comparable parts (using the Comparables page) and comparable suppliers (using the Alternate Supplier page).

Results

Before even walking in to the annual supplier review, the Buyer is confident in his data, armed with real price, supplier and parts comparisons – and the potential to purchase comparable parts from alternative suppliers.

Business Issue

The Procurement Manager has asked a Buyer to quickly overview supply cost savings objectives for the coming year, focusing on suppliers that were charging too much.

Challenge

Copy

Approach

Using the Global Supplier Chart, the Buyer easily assessed the overall purchasing price index of all parts and suppliers currently in the system. By viewing more detail in Supplier Portfolio pages, she could see individual parts from a specific supplier. Then, by navigating to the Global Supplier List and sorting by Part Spend Index, he was able to view the list with the most overpriced suppliers at the top.

Results

The Global Supplier Chart can instantly be used as a visual presentation to management, demonstrating which specific parts and suppliers to target for cost savings.

Business Issue

A supplier asks for a price increase on a group of parts.

Challenge

The Buyer wants to be armed with specifics before entering into renegotiation discussions with the supplier.

Approach

The Buyer, using the Global Supplier List, assesses the supplier’s summary analytics, noting their spend index. Then the buyer uses the Supplier Portfolio Chart and reviews the specific parts’ price index, considering comparable manufacturers and parts for context.

Results

The Buyer, using actual competitive information, has a realistic price discussion with the supplier and is able to realign the price group.