Establishment of an Indian supplier for slip ring assemblies

Goal: Global sourcing of castings for worldwide production sites of the group Make-or-buy


Duration: 8 months

Role in the project: Sponsor

Operational area, geographical:

  • India
  • Brazil


Type: Mechanical engineering
Turnover: 5 Bn. EUR
Number of employees: 25,000


For one particular application, there was only one known supplier (in Brazil) at the time for slip ring assemblies that were needed at multiple locations. The manufacturing process had been developed and documented.


  • Understanding of technical and commercial requirements
  • Definition of the objective
  • Longlist of potential suppliers
  • Initial technical evaluation using older models
  • Shortlist of potential suppliers
  • Commercial evaluation
  • Auditing of short-listed 5 suppliers
  • NDA – signing with 3 suppliers
  • Trial orders
  • Joint tests and discussion of improvement possibilities with 2 suppliers
  • Regular consultation with colleagues in the head office
  • Supplier and product release
  • Introduction of the new supplier


  • 1 Senior Purchasing Engineer
  • 1 Quality Manager
  • 1 Quality employee (head office Brazil)
  • 1 Mechanical Engineer R&D
  • 1 Supplier Development Engineer


  • Regular Meeting: Status Update Troubleshooting
  • Monthly meeting with plant manager


  • Purchasing
  • Technology (development)
  • Manufacturing / Production
  • Accounting & Controlling
  • Suppliers
  • Plant management


  • Material cost reduction (28%)
  • Introduction of an alternative supplier (dual sourcing)
  • Localization for the Indian plant


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