When a Tier-1 automotive supplier in Poland faced severe financial instability, the ripple effects threatened production continuity for a major OEM. Material shortages, overdue payments, and a non-functional MRP system created a high-risk environment where delivery failures were imminent.
KORN CONSULT GROUP (KCG) was brought in to stabilize operations, restore supplier confidence, and ensure uninterrupted material flow.
The Challenge
The situation combined multiple critical risks:
- Material shortages due to lack of structured planning systems
- Delivery interruptions caused by overdue payments and supplier distrust
- No functional SAP/MRP system, forcing reliance on fragmented data
- Untrained teams struggling to react effectively in crisis conditions
- Bottleneck suppliers limiting production output
Without immediate intervention, OEM production lines were at risk of shutdown.
The Objective
- Ensure continuous material availability for production over a 2-year on-site engagement
- Stabilize supplier relationships and mitigate delivery risks
- Build hands-on capabilities within procurement and logistics teams
- Implement practical tools and processes despite system limitations
The Approach
KORN CONSULT GROUP (KCG) deployed a hands-on, operationally embedded strategy, working side-by-side with the client team.
- Operational Material Planning Support
- Introduced offline material planning and control tools to replace missing MRP functionality
- Established clear visibility of stock levels, demand and risks
- Implemented structured material tracking and prioritization
- Supplier Stabilization & Negotiation
- Conducted on-site visits to bottleneck suppliers
- Led and supported critical supplier negotiations
- Restored trust through transparent communication and structured recovery plans
- Crisis Management & Escalation Handling
- Managed delivery-on-hold situations caused by late payments
- Established clear escalation pathways internally and externally
- Actively chased overdue payments to unblock supply chains
- Stock Optimization Strategy
- Introduced a 4-week safety stock program for raw materials and finished goods
- Reduced inefficiencies by optimizing overordering practices
- Balanced risk vs. working capital constraints
- Capability Building
- Delivered hands-on training for purchasing and logistics teams
- Focused on:
- Crisis response strategies
- Supplier communication under pressure
- Material planning without system support
The Results
The intervention delivered immediate stabilization and long-term capability:
- ✅ Zero OEM production shortages despite initial high-risk conditions
- ✅ 4 weeks safety stock secured across key materials
- ✅ Offline planning tool (KCG-developed) enabled reliable material control
- ✅ Improved on-time delivery performance from critical suppliers
- ✅ Long-term win-win agreements with bottleneck suppliers
- ✅ Fully trained procurement team capable of managing future crises
- ✅ Structured escalation and communication framework implemented
Key Takeaways
- Even without systems, structured processes and discipline can restore control
- Supplier trust can be rebuilt through presence, transparency, and action
- Crisis situations require hands-on leadership, not just strategy
- Building internal capability is essential for long-term resilience
Facing Similar Challenges?
If your organization is struggling with material shortages, supplier instability, or system limitations, waiting is not an option. These situations escalate fast—and the cost of inaction is production downtime.