Unprecedented change, within the most demanding and complex supply chains, necessitates speed while maintaining absolute accuracy.
The automotive sector innovates and launches new products and designs faster than any other industry.
The efforts to capture, or even keep, market share is extremely competitive. While innovating, the automotive supply chain is burdened with two fixed dynamics: controlling costs and increasing quality.
Only a small fraction of RFQs result in a tender. This is the reality of design. OEMs are looking at the whole, Tier-1 suppliers involve their suppliers, and so on. The RFQ ripple-effect results in a massive number of quotes and re-quotes for each design consideration. Procurement, however, has limited resources to manage the increasing demand; therefore, optimizing RFQ efficiency is paramount.
Speed to Qualification
No matter how much time there remains to Start of Production (SOP), there never seems to be enough. Managing to IATF 16949:2016, manufacturers juggle Advanced Product Quality Planning (APQP), Failure Mode and Effects Analysis (FMEA), Statistical Process Control (SPC), Measurement Systems Analysis (MSA), Production Part Approval Process (PPAP) and more. The speed and efficiency to qualification aids in preventing failed launches, recalls, and cost overruns.
Continuous Improvement, a tenant of the automotive industry, is followed closely by Design Change. Changes necessitate requalification (see above) and involve a large number of cross-functional stakeholders (e.g., manufacturing, quality, sourcing, design, suppliers, etc.). The efficiency of implementing these changes defines the velocity of improvement.
Strategic suppliers have already been thoroughly vetted; however, a significant effort to re-source previously awarded parts/materials is underway. Increasing costs on parts and materials, whether attributed to tariffs or supply shortages, has caused supply chain disruptions and, at a minimum, having automotive manufacturers considering alternative suppliers and markets. Procurement challenge: Manage all of today’s needs, while planning the future.
We have successfully helped our automotive (OEM and Tier-1) customers in these critical areas.