- Automotive, Mechanical engineering
When insolvencies cause a sudden change in the supply chain, fast reactions are required. Often “quick fixes” are made, describing the famous path “from the frying pan into the fire”. In such situations, we quickly point out resilient decision alternatives and support fast and viable solutions with our network in Europe.
In this specific case, a southern European supplier found itself in a legally tricky situation of insolvency proceedings, but was able to continue supplying under conditions. We were deployed in the project to continuously monitor supply risks throughout the entire supply chain on the one hand, and to monitor output on site at the supplier’s premises on a daily basis on the other, as well as to assess unit quantity and quality risks and reduce them by means of sometimes ambitious measures. We were driven by achieving an optimum in production technology and were flanked by legal experts who assessed the feasibility of all measures. Today, production is still taking place at the site, an investor has taken over the production facility – also thanks to our involvement on site – and the supply chain has been fully stabilized.
Profile
Company size
Location
Italy
Period
2 years
Branch
- Automotive, Mechanical engineering
Percentage of individual services
- reactive situation stabilization
- holistic concept development
- risk analysis production performance
Challenge
- Ongoing insolvency proceedings of the supplier
- High supply risk of the customer plant due to lack of alternative suppliers
- Low motivation & discipline of employees
- Lack of transparency regarding further supply to the customer's plant
- Remote production site
- Complex stakeholder composition
- Lack of personnel capacity due to high fluctuation as a result of the insolvency
Procedure
- Risk analysis of on-site processes, plants and supply chain
- Support supplier in insolvency situation according to ital. Law, in production management & as an interface to the OEM.
- Coordination of equipment manufacturers to maintain equipment
- High frequency reporting to OEM
- Development and evaluation of alternative sourcing strategies
- Maintaining production by sourcing raw materials from the OEM
Results
- Service of customer call-offs was ensured
- The supplier's production capability was maintained
- A 15-week stock of semi-finished castings was built up to minimize risk
- An alternative supplier was established to expand the mechanical processing capacities
- Preparation of the takeover by a Chinese investor
- Fluctuation less than 10%
The project in detail
Project Highlights
On-site management in production
Complex international insolvency law situation
High level of production know-how
