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
- 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
- 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.
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. If would translate into significant savings for the entire company.