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Case Study - Automotive Parts Supplier

Automotive Parts Supplier


A midsize automaker parts company that has been around for about 20 years. They have always made a decent profit, but over the past few years, their profits have been shrinking. To make matters worse, their productivity has been declining, and they've been losing market share to their competitors. We were hired to help the automaker parts company turn things around.


The Ellavantage team met with leadership to get a better understanding of the company's challenges and goals. We spent a few weeks interviewing employees and analyzing data and presented our findings and recommendations.


First, the company's manufacturing processes were outdated and inefficient, which was driving up costs and hurting productivity. Second, the company's product development process was slow and inflexible, which was making it difficult to keep up with changes in the market. And finally, the company's customer service was subpar, which was leading to lost sales and negative word-of-mouth.


The Ellavantage team proposed a few key solutions. First, we recommended that client invest in new manufacturing equipment and processes to improve efficiency. Second, we recommended that the company overhaul its product development process to make it more agile and responsive to market changes. And finally, we recommended that the company invest in training and incentives to improve customer service. Over the next year, the company implemented these changes, and saw a dramatic improvement in their bottom line.

Case Study - Automotive Parts Supplier


For the manufacturing process, the company invested in new equipment and implemented lean manufacturing principles. For the product development process, they implemented an agile development methodology and created cross-functional teams. And for customer service, they invested in training and implemented a new incentive structure. All these changes resulted in a significant improvement in the company's bottom line, and they were able to regain market share and increase their profitability.


After implementing the changes, the company saw a significant increase in their profit margin. Their net profit increased by more than 20% within the first year. Additionally, their gross profit margin increased by 10%. In terms of productivity, output per employee increased by 15%, and their on-time delivery rate increased by 20%. In addition, the company was able to reduce their lead time for new product development by 30%.

Case Study - Automotive Parts Supplier
Case Study - Automotive Parts Supplier


Ellavantage was instrumental in helping our client turn around their business. The company was able to make a significant improvement in their profitability, productivity, and customer satisfaction. They were able to improve in all areas of the business, and they were able to do so in a relatively short period of time.

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