Steering Components Re-Sourced: 28% Cost Savings & Full Compliance with U.S. Federal Standards
The Challenge
A North American manufacturer of specialty vehicles obtained its precision-machined steering knuckles and shafts from a Chinese supplier that offered reduced costs. The supplier provided competitive pricing but did not fulfill automotive standard requirements which included both full traceability and PPAP documentation. The company faced substantial compliance risks and supply chain vulnerabilities by maintaining its relationship with the supplier because of increasing U.S. tariffs and Chinese steel content regulatory scrutiny which affected its vehicle deliveries to the U.S. federal government.
Potential Consequences if Unresolved:
A failure to maintain strict supply chain transparency would lead the manufacturer to lose essential federal and military contracts. The production of vehicles faced possible delays because of rising tariffs and the slow processing of documentation which would also decrease project margins.
The Solution
GetAhead discovered a dependable automotive parts supplier in India which specializes in producing critical steering and suspension components through CNC machining and broaching processes.
GetAhead’s Solution Included:
1. Engineering Collaboration: Through designated DFM sessions these enabled the modification of tolerances for Indian machining processes while protecting performance specifications.
2. Machining Trials: Conducted pilot runs with stringent hardness checks and run-out precision to qualify parts to end-customer tolerance.
3. Steel Traceability: Co-worked with Indian steel mill certified to provide consistent material grade and full chemical composition traceability.
4. Documentation & Validation: Submitted a complete PPAP package, i.e., FMEA, control plan, and Measurement System Analysis (MSA), all as per automotive specifications.
Results
Compliance Success: The customer’s federal sourcing and compliance team has fully approved the parts.
Cost Savings: We managed to reduce costs by 28% even with stricter tolerances by using India’s affordable manufacturing.
Tariff Protection: We moved the whole steering system supply out of China, which cuts down on tariffs and risks from global politics.
