Battery Transfer & Remediation
Philips
Secured $1B+ in revenue through battery transfer and remediation.
Challenge
Portfolio of legacy batteries with suboptimal supplier controls and mediocre performance created quality issues, supply disruptions, and significant business risk.
$1B+ in revenue depended on these batteries, making remediation critical.
Actions
Applied APQP to strengthen supplier processes and close quality gaps.
Executed transfer of battery production to Mexico to enable quality and cost improvements.
Qualified second sources for most batteries to reduce dependency on the incumbent supplier.
Negotiated performance improvements and financial concessions with the incumbent supplier.
Results
Secured $1B+ in revenue at risk.
Reduced $30M battery spend through 15% cost savings and a $3.6M lump-sum settlement.
Improved quality and supply resilience through dual sourcing and stronger controls.
Restored confidence in battery supply for Class II/III medical devices.