Experts on Tour - Celerant Consulting
Jordan Grand Prix - Supplier Management at Formula One Speed
Suppliers are vital to Formula One teams. Where many teams make, Jordan often buy, deciding to focus their talent productively on designing and racing the car, where they will make the greatest difference. With a tough performance review in testing every week and competitive analysis in front of 350 million TV viewers, components from suppliers have to be more than right on time - they have to be right first time. Jordan knew how much it was paying for external supplies. What was unclear was how much its suppliers - and their approach - were actually costing them. The team placed considerable strains on suppliers, often requesting changes to products after manufacturing started. This increased costs, timescales and the possibility of imperfections. The results the supply chain was actually achieving needed to change for the better in order to spur Jordan toward greater success.
The key to this project was a successful Supplier Management System, which comprehensively addressed issues at the Strategic, Tactical and Operational levels. With Jordan Grand Prix, we identified a set of initiatives that would address the pressing problems quickly and effectively:
- Establishing a Purchasing Strategy
- Creating a working supplier Management System
- Looking at their Operational Capability and that of key suppliers
- Examining the Capabilities and Styles they needed for the best possible supplier relationships
- Doubling of on-time delivery
- 60% reduction in defective components from suppliers
- 50% reduction in design changes during manufacture
- A drop in the overall cost of supplies
About Celerant Consulting
Celerant Consulting enables leading companies to achieve significant increases in quantifiable value. The company provides operational strategy and implementation services and prides itself on being the consultant most able to help organizations progress rapidly from thinking differently to acting differently. Headquartered in London, Celerant Consulting has a 15-year track record and an established presence throughout North America and Europe. The majority of its clients are the top 1000 companies in the world across Energy, Process, Manufacturing, FMCG, and Infrastructure industries. Celerant Consulting is an affiliate of Novell, Inc.