It all began with AC submitting a RFP for a major new customer account. AC needed a supplier that could handle the manufacturing of the required components for AC’s end product as well as provide competitive pricing, quality, and lead times. Plus, the supplier needed to handle short lived cyclical demand and help prevent the buildup of obsolete inventory. CSI Group was able to produce 9 out of the 10 components as well as meet all the required criteria mentioned above. Because of this accomplishment, CSI Group became the Preferred Supplier for all 9 of the components.
After CSI Group became AC’s Preferred Supplier, both companies faced several challenges such as producing parts they had never made before, language barriers, and the customer providing inaccurate forecasts as well as the customer’s demand being highly cyclical, but also unpredictable. But, with the partnership based on the SRM elements and CSI Group’s unique and flexible business model, the process from concept to production was completed in only 5 weeks which normally take months, language barriers were overcome, and demand risk was lessened by weekly communication and with AC providing CSI Group with a Letter of Intent that guranteed them business. In return, CSI Group agreed to maintain 25% of the estimated volume of all 9 parts on their shelves. THis project benefited by CSI Group and AC’s partnership which allowed the project to move forward quickly and seamlessly.
In the earlier years of this business relationship, CSI Group took part in AC’s plant SRM process. Because of the success of the mentioned project, CSI Group became part of AC’s corporate SRM program which in turn CSI Group has received attention at a high level. AC’s corporate endorsement of CSI Group played an important role in CSI Group acquiring business with each of AC’s manufacturing plants.
The results of this partnership were significant and tangible benefits for both companies. Due to the increased demand from the mentioned project and CSI Group being a strategic partner, CSI Group’s business with AC increased 283% from 2012-2015. Having CSI Group as a partner, AC’s customer was happy with quality, price, and delivery. As for AC, over the years, they were able to eliminate multiple suppliers and replace them with a high quality, reliable, and trustworthy supplier-CSI GROUP.
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