Helping Alcoa European Automotive Group establish and manage their sourcing office and supplier network in China.

Situation:

Alcoa European automotive division, whose headquarters are in Germany, sourced all of their China component requirements direct from Germany and managed those same suppliers direct from Germany. They took the strategic decision to establish a direct presence in China in addition to broadening their supply network specifically for aluminium components. It was also decided to outsource the project to establish such an initiative to a third party consulting firm. Based on a variety of reasons including Infinite Sums knowledge of the China Aluminium component supply network, in addition to our engineering team presence in Europe, Infinite sum were chosen by Alcoa to lead the program.

Approach:

Infinite Sum established a joint project team comprising members from our European offices as well as our China offices. The project consisted of various parts including:

  • Establish a Shanghai based procurement solution to deal directly with Alcoa Germany and China suppliers.
  • Apply Infinite Sum standard supplier search and selection process to identify, qualify and select priority suppliers for Alcoa.
  • Develop and integrate chosen China suppliers into the Alcoa supply chain
  • Build the appropriate supply management and quality systems to manage the China suppliers.
Results:

Created a new supply network and procurement office in China for Alcoa European auto group. Managed both the suppliers and procurement office on behalf of Alcoa on an on-going basis in China, ensuring continuous improvement and cost saving initiatives were delivered to expectation.