Case Study: Global Automotive OEM

Global Automotive OEM uses TRUsource to unify and automate RFQ processes

A well-known, global automotive OEM recently implemented TRUsource, Trubiquity's on-demand RFQ solution, to automate requests for quotes for the company's global supplier network onto a centralized, electronic platform, reducing both time and effort required for the procurement process and significantly improving buyer productivity.

The Challenge

Consolidating large design files and engineering data with high-volume procurement processes for both pre-sourced and existing suppliers in a secure, automated, and efficient way.

At the onset, the company was managing its pre-sourced procurement processes manually. This entailed the time and cost associated with assembling requests for quotes, printing the requests on paper, burning the associated documentation onto multiple CDs and paying at least $30 to ship each request for quote to up to 20,000 potential suppliers.

The company sought a way to distribute its RFQs electronically in order to save time, reduce costs and eliminate the potential for lost documentation or data entry errors. The new procurement system needed to be easily accessible in all markets, particularly low-cost developing markets like China and India. The company needed a deeper level of traceability and visibility into the RFQ process, specifically the ability to confirm that suppliers have received and downloaded the appropriate data. The new solution would also need to be ready to handle the large engineering files that often accompany RFQ information. Finally, they needed the ability to respond to and communicate with their suppliers directly through the electronic tool in order to best keep track of the procurement status.

The Solution

A simple, efficient SaaS-based RFQ solution.

The automotive OEM selected TRUsource, Trubiquity's on-demand solution for aggregating and distributing RFQ content. As a step up from the previously fragmented, manual RFQ processes, the company's RFQ administrators can now log into TRUsource and get a real-time dashboard overview of what documents were sent, which suppliers received them and what information is being downloaded. The application includes user-based permissions that allow RFQ administrators to add users to participate as contributors or readers, freeing up RFQ administrators from the task of providing updates for internal users and giving buyers total visibility of the RFQ process.

One feature that differentiates TRUsource from other procurement solutions is the ability to manage large engineering files. TRUsource can handle large and small files of any format with a high level of security that protects suppliers' and OEMs' intellectual property, even through the bidding process, all in a SaaS format. TRUsource is not only secure, it provides RFQ administrators with audit-level traceability throughout the entire distribution and submission process.

Trubiquity knows that the buyers and administrators sometimes need additional information in order to issue a complete RFQ. That's why TRUsource includes a Contributor feature that empowers RFQ administrators to request additional data uploads from other valuable team members in the company.

Finally, the TRUsource platform is designed to be easy for the supplier base to use and adopt. TRUsource is a hosted solution, which means fast implementation and global accessibility for all RFQ participants without special hardware or software requirements, all at a low total cost of ownership. The automotive OEM implemented TRUsource at no cost to the supplier base, and the intuitive user interface lowers barriers to adoption and makes it easy for suppliers to provide RFQ information, with reporting and tracking available for the entire supply chain.

The Results

TRUsource enabled the major automotive OEM to streamline its RFQ process and improve buyer productivity by replacing an outdated, manual process with an automated procurement platform. In this case, TRUsource helped the OEM to reduce procurement costs by more than 25% and improved lead times from several days to just a few hours.

In addition to saving time and increasing visibility for buyers and RFQ administrators, TRUsource delivered a global on-demand, easy-to-use solution for suppliers to retrieve RFQs, manage large files securely and upload quotes efficiently. Having the entire procurement process centralized and automated with TRUsource has also helped the company to comply with internal audit requirements. The company is now engaging more than 5,000 suppliers around the world through TRUsource.