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  • automotive
  • Procurement
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Total Cost of Ownership Supplier Performance Benchmarking

An automotive OEM and heavy equipment procurement division sourcing $80M in braking systems, alternators, and hydraulic pumps from 6 competing global Tier 1 suppliers.

Runs onYukti
identified that Supplier B delivered
14%identified that Supplier B delivered
downstream warranty claim expenses reduced
$3.2Mdownstream warranty claim expenses reduced

How the work runs

The pressure that made this worth automating, the steps the system runs, and what came out the other side.

Pressure & Trigger Points

  • Procurement decisions were made strictly on initial purchase price, awarding contracts to Supplier A because their unit price was 8% lower.
  • In the field, Supplier A components suffered a 3x higher failure rate during warranty periods, driving massive downstream warranty claims and dealer labor costs.
  • Procurement lacked the unified data to calculate true Total Cost of Ownership (TCO) including warranty, downtime, and replacement frequency.

The run · 5 operational steps

Click any step to inspect telemetry signals, model reasoning, and governance gates.

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1

Unified Supplier Quality & Reliability Database

Yukti connects procurement purchase orders, warranty claims, dealer repair invoices, and telematics failure logs into a single data layer.

Input Signal:

Real-time operational telemetry & queue

Reasoning Pattern:

MCP grounded vector inference

Governance Gate:

Policy constrained with audit write-back

Verified Business Outcomes

  • Identified that Supplier B delivered a 14% lower net Total Cost of Ownership despite an 8% higher initial purchase price.
  • Downstream warranty claim expenses reduced by $3.2M by reallocating sourcing contracts to high reliability suppliers.
  • Accelerated supplier evaluation and contract renewal analysis from 2 months to under 10 minutes.

Capabilities this relies on

  • system connectors
  • forecasting
  • risk scoring
  • scenario simulation
  • alert routing
  • evidence audit trail

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