An Automotive Supplier Saves 34% on Vendor Managed Inventory with Amicus

Member Profile

An Automotive Supplier is a leading global manufacturer specializing in interior, exterior, seating, cockpit electronics, and passive safety solutions. With a strong focus on innovation, the company develops advanced technologies that enhance vehicle design, functionality, and safety.

Operating across more than 240 sites with approximately 57,000 employees worldwide, the company boasts a robust technical team of 4,100 experts. Their 14 R&D centers and regional offices provide comprehensive capabilities, including engineering, software development, design, testing, and validation.

Committed to shaping the future of mobility, the company pioneers smart cabin and lightweight technology, delivering cutting-edge solutions that support automakers in redefining the driving experience.

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The Challenge

They came to us with a request for an onsite vendor management program.

Previously, they had worked with a large national distributor on bin stocking for fasteners. They were looking to change partners and expand the scope of their vendor management program to include not only fasteners, but also PPE, cutting tools, abrasives, and other standard MRO items. Additionally, they required vending machines for a point-of-use solution.

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How Amicus Helped

We obtained a list of the required items from the customer to bid out to the incumbent supplier as well as other suppliers. We met with the suppliers to communicate the additional service requirements, including vending machines, prior to issuing the bids.

Bids were sent to suppliers, and once all bids were returned (including vending proposals), Amicus completed an analysis of the bid responses and identified MSC Industrial as the optimal supplier to provide the products, service, and vending agreement.

Amicus then coordinated a meeting between the local MSC representative and the appropriate individuals from the client facility to discuss the specifics of the service requirements, vending machine configurations, installation plans, field service requirements, and appropriate consignment levels. Additionally, the MSC vending agreement was provided to the client’s corporate team for review and signature.

Once the final service levels were confirmed and the vending agreement was executed, Amicus completed the catalog setup for the selected items.

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Results

The client achieved a significant 33.8% savings in piece price by leveraging Amicus’ strategic sourcing capabilities. Additionally, the implementation of vending machines for a broad assortment of MRO supplies led to a noticeable reduction in product consumption, while also minimizing employee downtime by improving accessibility and efficiency at the point of use.