Cookeville, TN
Changing the tire while the car is moving
A Tier-1 supplier was costing us more than they were worth. Seventeen high-volume products depended on them.
Seventeen high-volume lube filter SKUs ran through a single Tier-1 supplier whose cost position had drifted badly out of line. Replacing them was the obvious answer and the frightening one, because these were fast-moving aftermarket parts feeding four distribution centers across five regions. Any gap in supply becomes a stockout, and a stockout in aftermarket is a customer who buys the competitor's filter and never comes back.
I built the transition around the data rather than the calendar. Using SAP MM purchasing info records and MRP demand forecasts, I modelled consumption per SKU and sized the safety stock buffer needed to cover the changeover window at each DC. I rebalanced SKUs across the network so no single site carried the risk, then ran demand-driven replenishment through MMBE and MB52 and tracked every open order in ME2M so nothing slipped quietly. The new supplier was qualified in parallel, not in sequence, so validation never became the critical path.
$1.8MM in annual savings at 136% ROI, delivered with zero supply disruption. The same discipline that protected the changeover kept running afterward: the network held 98% on-time delivery with measurably shorter lead times, and I optimized the resulting $162K global stock portfolio across all five regions.