Prior Situation / Scenario:
Selection process for spare parts suppliers has rules, but lack adherence.
Subjective inspector’s judgment influenced final decision with no control which suppliers were chosen.
Bids granted to expensive providers.
Client Challenges:
Identify badly awarded bids.
Quantify how much the process would improve if clearer rules are applied.
Evaluate suppliers on past performance in order to decide new contracts.
Strata Solution / Key Enablers:
EDA (Exploratory Data Analysis) explore the behavior of inspectors and providers, with comparison of awarded and non-awarded providers for each claim, considering relevant objectives including cost, quality and delivery of spare parts.
Outcome:
We develop a tool that allows to select the best supplier based on data and analytics.
4% saving achieved on cost of suppliers.
Provider quality indicator was created based on their past performances to track performance.
Results:
Identified almost 30% of inspectors chose a more expensive provider. Proposed a series of rules based on data that, if applied, would reduce this margin of error. It would translate into significant savings for the entire company.
