Supply chain management performance benefits from supply partnership

To improve its machining operations and hold down costs HNAI Automotive Inc., (HNAI), a US producer of automotive components, took on a tooling technology partner, Decatur Custom Tool Inc., (DCT) to share both the risks and the rewards. A unique tooling management agreement was negotiated in which: 1. DCT became the primary tooling provider - with over 80% of the spend for tooling and related equipment. 2. HNAI retained final control of all tooling decisions. 3. DCT was given a set of annual imp...

BPIR Categories

2.4.2 Create and implement outsourcing strategy
14.1.1 Design & deploy performance measurement system
5.5.2 Manage inventories