Delphi seeks to reduce supplier base

Tier One auto supplier Delphi corporation will seek to substantially reduce the number of its sub-suppliers in the upcoming years, according to the company’s vice president of global purchasing, Dave Nelson.
Speaking at the Automotive Parts Manufacturers Association annual conference in Hamilton, ON, Nelson said that while company does not have a specific target number of suppliers in mind, it needs to take action to reduce the cost structure associated with having too many suppliers.
"We have about 1500 suppliers that sell us one part and another 1500 that sell us two parts," said Nelson. "So reducing our supply base is not as radical as it sounds."
Nelson said the strategy to reduce the number of suppliers will not restrict Delphi from taking on new suppliers that can offer value-added services or innovative technology.