Project Showcase

Project Clean Sweep was originally launched to turn the North American Service Parts Business back to profitability. This report covers both the team’s analyses and recommendations for Project Clean Sweep as well as an implementation guide for future projects.

Over the course of implementing Project Clean Sweep for Stoneridge Electronics North America, the team selected 25 service part product lines near the end of their lifecycles. By breaking down the cost structures of these product lines, implementing price increases, and obsoleting parts with low demand, the electronics service parts business:
• grew 2.5x in annual revenue and achieved 50% gross margin

• obsoleted about 35% of the part numbers involved, simplifying operations

The team went on to holistically evaluate each remaining product line to make a sell/obsolete/maintain decision. Our analysis led to the recommendation that Stoneridge pursue a sale of all remaining product
lines.