Delphi to halve its number of suppliers

Frankfurt/Main. The world's largest automobile supplier, Delphi Automotive Systems, is introducing a global purchasing strategy called "Lean Enterprise." One of the cornerstones of the plan is to halve the 5,000 suppliers it works with directly in the next three to five years.

Delphi will maintain a strategic long-term partnership with the remaining companies, provided they adopt a similar "slim structure." To assist its suppliers in finding such a structure, 40 Delphi engineers are currently helping introduce elements of its DMS production system at some of its most important partners.

Delphi's new supplier strategy does not mean it will end all ties with half of its suppliers. "Companies that currently supply us directly will in future be supplying our system suppliers," said Delphi Europe boss Volker Barth.

In future there will be between 60 and 100 key suppliers, Barth said. Targets and cost structures will be discussed openly with them. Ideally "the engineers of both sides will be working together as if they were from one and the same company," he said.

Another key factor of Lean Enterprise: instead of focusing on the price of each item, Delphi will be looking closely at the total cost within the supply chain.

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