Automotive Parts Supplier Risk Identification and Margin Protection Client Context:
An automotive parts supplier with complex tiered sourcing experienced repeated unexpected supply shortages and margin pressure from emergency expedited logistics.
Challenge
Lack of a centralized risk view and poor communication with sub-tier suppliers caused late identification of disruptions and costly crisis management.
ET2C Solution
ET2C implemented supply chain mapping to identify critical risk nodes, introduced supplier risk dashboards, and facilitated weekly cross-tier communication sessions to highlight and address emerging issues.
Outcomes Delivered
- Mapped and classified risk exposure across the supply chain tiers, prioritizing key interventions.
- Reduced expedited freight costs by 40% via early disruption detection and collaborative problem-solving.
- Improved cross-tier visibility and communication enhancing responsiveness and trust.
- Supported sustained margin improvement through more predictable supply flows.