Approximately 60% value is added to the car by systems, modules, and car suppliers. The central task of automakers is to procure cost efficient product with highest flexibility and quality from their network of suppliers. The price competition further increases the market competitiveness.
The suppliers and manufacturers are always under constant pressure to produce, supply and procure cost efficient product. The continuous change in the vehicle function, and the demand for fuel efficiency and safety, and to fulfill the government’s legal requirement further increase the pressure in the procurement of parts and components. The automotive industry will witness significant change with respect to parts and components employed in the future. The boost in the adoption of electric vehicle will have a significant impact on the market. The parts and components which will be vanished from the ecosystem or added to the ecosystem is depicted with the help of figure below:
Automo approach of lowering the cost of product and procure highest quality product from the right supplier is supported by our database program of who supplies whom and by our industry expertise to achieve significant savings. Automo possesses an in-depth understanding of the suppliers market in the domestic, regional and international market. This further help our partner client to improve their portfolio of suppliers and reduce the procurement risk.
How we can help
The organization purchasing needs to closely monitor the supplier innovation performance and product quality along with the ownership cost. For OEM’s availing consistent and superior quality is super important. To ensure differentiating and unique product, OEM’s need to select their supplying partners carefully. The change in customer preference and responding in a timely manner to market fluctuations require a flexible supply chain which further enables OEM’s to attain a top position in the market. Automo helps its partner client in achieving their goals with respect to purchasing of parts and components. Our team focuses on both scenarios i.e. OEM’s and suppliers.
For any organization to be successful, it is critical to have a comprehensive risk management system which further helps the automakers to avoid situations such as a quality problem or supplier insolvency which can further jeopardize the entire supply chain movement. Automo capabilities help to deduce the effective risk management and mitigate the risk pertaining to the supply chain in the automobile industry.