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Case Study

The challenge

One of the world’s largest car manufacturers, wanted to streamline its parts shortage management process by replacing the company’s inefficient—and often inaccurate—manual parts shortage management (PSM) with a digital solution. The automaker engaged Cognizant to access its current PSM processes and develop a digital solution to optimize parts shortage management.

Our approach

Based on the assessment findings, Cognizant developed a strategy to rollout the company’s largest global digital platform to improve part-ordering agility, provide accountability for operations and drive meaningful insights to support decision making.

The analytics-backed digital parts platform features a mobile-based app for team leaders and a desktop application for parts-ordering specialists to provide real-time visibility into parts shortages and agility necessary to respond and prevent line disruptions.

Digital solution streamlines the company’s parts shortage management process

Cognizant’s digital PSM solution resulted in a 50% drop in parts shortages for the client along with significant cost savings. The company has plans to use this project to springboard future digital factory initiatives, leading to ever greater agility, efficiency and resilience to business disruptions.

$2,000,000

cost savings after the first phase

100%

reduction in the number of shortage parts ordered

50%

decrement in plant-floor parts shortage