Visteon Works to Improve Supply Chain

Supplier Success Factors

These three factors will help Visteon sucessfully engage suppliers:

  • Meaningful incentives
  • Effective idea generation
  • Follow-through and accountability

The automotive industry is currently in the midst of a stunning realignment of its global supply chain. While recent years have produced a variety of industry consolidations, spin-offs, mergers and cost controls, a common theme heard from analysts is that the industry needs to improve the output of its supply base while reducing costs and maintaining consistent output.

Visteon Corporation is prepared to meet this challenge; it is in the process of working with its supply base to eliminate waste, improve design and manufacturing quality and increase the operating margins of Visteon and suppliers by employing a combination of short-term, quick fixes and long-term collaborative improvements.

Helping Suppliers Excel
Visteon has a clear vision of reducing total material cost through collaborative waste elimination actions identified by the company and its supplier cross-functional teams. The global team has specific requirements and outcomes in place to help guide suppliers. Ongoing goals of this initiative include:

  • Immediate waste reduction in engineering and manufacturing
  • Improvements in design and manufacturing
  • Business consolidation with a select number top performing preferred suppliers

Suppliers that meet their clearly defined requirements will enjoy significant financial rewards and enjoy favored status on future quoting opportunities.