JTEKT

Situation

JTEKT North America, Inc. (“JTEKT”), a Tier 1 supplier located in Canton, Ohio, provides steering and driveline products to the North American automotive industry. In 2011, JTEKT sourced several new parts to Kotobuki Reliable Die Casting, Inc. (“KRD”), an Ohio-based Tier 2 manufacturer of high pressure aluminum die castings in the automotive industry.

In 2012, KRD ramped up production on new JTEKT parts and experienced difficulty meeting volume requirements, thus running the risk of shutting down both JTEKT and the OEM customer.

Solution

Amherst, working directly with KRD management and staff, assisted in the development of improved operating procedures and weekly operational and cash flow budgets, and managed all communications between customer and supplier.

Results

Amherst established clear lines of communication, allowing JTEKT to understand and plan for volume deficiencies and shipment timing.

Amherst facilitated the relationship between customer and supplier, maintaining production until the two organizations developed a plan to source the parts to a new supplier.

Both parties were able to agree on an exit strategy and, by mutual agreement, the JTEKT parts were resourced without incident.