Based in southern California USA, Turbo International is one of the leading companies in turbocharger aftermarket. They supply core components and assemblies to leading turbocharger spare markets worldwide. The business had been in a profitable position for more two decades since mid-1980s. By 2010, when the turbocharger spare market became much more competitive, demanding the market players to be able to offer more cost-effective solutions with higher quality, Turbo International felt it imperative to define the areas where there were potentials to enhance business efficiencies. Sabre was approached by their European marketing director to review their business model and identify where the improvements could be made.
During a two-year period, Sabre personnel went to US and worked closely with Turbo International team in those defined areas, which covered assembly line and warehouse management, sourcing base and supply chain management. Sabre team applied Lean principle to re-arrange the assembly line and warehouse layout, and relevant staff were trained to operate in a Lean manner. The cost and quality of sourcing had become crucial for any market player in turbocharge aftermarket to compete and survive. As the component manufacturers in Asia became more sophisticated and kept improving the quality of products, it had been inevitable for Turbo International to look east and re-organize their sourcing base.
With the knowledge and experience in automotive industries in Asia, Sabre established reliable suppliers in China and India for the core components at significantly lower cost. At the same time, quality management and ordering systems were set up within Turbo International and their Asian suppliers. To ensure timely supplies from Asia, Sabre worked with Turbo International by involving Asian suppliers and established an effective supply chain system, which was cost-effective and allowed transparency for both sides to monitor the progress of supply.
By the time when two-year contract was completed, the operation of Turbo international had recovered its position with a reliable supply base, effective supply chain, lean business practices and significantly improved bottom line performance and competitive position.