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Category Management Case Study

Mac Arthur Corporation was selected to implement a Category Management program in North America for one of the largest automotive suppliers in the world. This program involves managing and producing over 300 million labels annually for the client. Listed below are some of the factors that saved our customer millions of dollars.

Situation

  • Over 250 label suppliers
  • Unacceptable quality and delivery performance in supply base
  • Rising costs
  • Excessive part numbers and specifications (more than 25 label specifications)

Actions

  • Mac Arthur audited plants to identify consolidation and savings opportunities and took over manufacturing of labels
  • Leveraged volume purchases to drive savings
  • Worked with Engineering on reducing specifications and improving design
  • Implemented cost model to streamline purchasing process
  • Provided bi-lingual customer support, EDI & web based ordering and tracking.

Results

  • Average of > 8% savings over last 8 years. Millions of dollars in realized savings.
  • Complexity reduction and part consolidation. From 25+ specifications to one.
  • Consistent green scorecard – delivery and quality issues solved.
  • This was all done for free. No consulting fees.

This program has greatly simplified and lowered the cost of label and ribbon purchasing for the customer. They were able to redeploy personnel and resources while improving quality and reducing their cost per label. This relationship has grown and we are now expanding this project to regions outside of North America. Contact us to learn more.