Unipart Eberspächer Exhaust Systems (UEES) manufacture exhausts and fuel tanks for the automotive market and have a range of key suppliers for components. Some of its suppliers are based in low cost economies and require careful management.
With new suppliers: UEES has introduced a self assessment questionnaire. It is carried out by looking at long term strategy, financial stability and an assessment of intangibles. A matrix of 10 elements is used to evaluate risk
UEES also uses Unipart Way techniques to work with new suppliers who still have outstanding risks. Working in partnership, UEES seeks to bring them up to the required standards. The Unipart Manufacturing site that is based in Coventry has also worked with strategic suppliers in difficulty.
UEES has introduced a programme of audits to cover 100% of suppliers over a three year period. During this period UEES and its individual suppliers also review the suppliers’ ongoing financial position with a view to helping suppliers to achieve their financial goals. UEES also monitors suppliers’ accreditations such as ISO14001 as they are due for renewal.
A quarterly review is carried out with suppliers covering all key performance indicators. This leads to a traffic light (RAG) assessment which identifies areas as Red, Amber or Green depending on the amount of attention required in order to achieve KPIs. Performance that is rated below green requires a recovery plan, and a rating of red triggers an additional audit.