Client Success Story
Automotive Assembly Plant Uncovers Opportunity to Reduce Spend by $2.5 Million, Save Hundreds of Hours Per Week
Industry: Manufacturing
Solution: Data Value Assessment
Introduction
Data-driven insights empower manufacturers to become more proactive, predictable, and profitable. However, many companies look for answers in the wrong places or rely on gut feelings instead. Such was the case for one automotive assembly plant operating under a multinational manufacturer.
Challenge
Home of North American production, the plant produces more than 300,000 vehicles per year and is committed to quality, safety, and environmental stewardship.
The plant’s procurement group controls $6 billion of company spend and its buyers purchase raw materials like steel and aluminum.
However, the team struggled with manual processes, poor visibility, and a sea of disconnected spreadsheets. The assembly plant knew they needed to change but weren’t sure where to start.
vehicles produced per year
of company spend controlled by procurement
Solution
Our manufacturing experts initially worked with the plant to conduct Power Apps workshops and simplify basic tasks. But after learning about procurement group challenges, we proposed a Data Value Assessment (DVA). This multi-week engagement helps clients uncover and prioritize high-value opportunities to become more data-driven.
FINDINGS
As part of the DVA, our senior data scientists and specialists analyzed the procurement team’s data flow and processing and found:
58%
of reported time spent on inefficient activities
like transferring data and tracking down documents
19%
reported time spent on activities directly related to negotiating pricing
This was due to excessive effort required to find, maintain, update, and collate data; inconsistent storing, labeling, and access to essential documentation; and a lack of centralized reporting and alerts.
RECOMMENDATIONS
After completing the assessment, we recommended a modern data management platform with customized tools to better track market trends, approvals, and vendor cost information.
Cost analysis Power App to enable buyers to view and update vendor cost information in one place
Steel market trend analysis Power App to capture inputs for historical quoting to improve negotiation power on price
ApprovalCONNECT Power Platform IP to streamline approval processes and handoffs with defined workflows and notifications
Results
After working through opportunities uncovered in the DVA, the automotive assembly plant can expect:
Savings of 600-800 hours per week
by eliminating inefficient work processes
1% reduction in price increases
a potential savings of $1.36 million
$2.5 million reduction
in steel spend
Increased employee engagement
and satisfaction with cross-functional workflows
About MCA Connect
Through passion and deep industry expertise, MCA Connect® helps manufacturers succeed by unlocking innovation with actionable business insights. Our strategic solution and industry intelligence help manufacturers gain visibility, improve profitability, and achieve a competitive edge. Contact us today to learn how we can help solve your biggest manufacturing challenges.
