Overview of the Automotive Manufacturing Industry
Over the past few years, the global automotive manufacturing industry has started witnessing high investments in R&D to cater to the rising demand from customers, comply with the stringent regulatory measures, and increase profit margins. The growth of the automotive manufacturing space is primarily marked by the rise of shared economy and partnerships with disruptive tech companies. Despite the recent economic crisis, prominent automotive manufacturing firms are enhancing their capabilities and offerings by heavily investing in technologies to stay competitive and offer low-cost offerings to the customers.
However, a few factors are expected to disrupt the growth of the automotive manufacturing industry in the coming years. These factors include:
- Increasing globalization: Leading firms in the automotive manufacturing industry have started facing challenges when it comes to penetrating niche target segments and enhancing business offerings due to the increase in the globalization. As a result, automotive manufacturing companies need to find innovative ways to reach out to their target audience, while maintaining the quality standards.
- Changing consumer preferences: Due to the presence of numerous companies and brands, the automotive industry is nearing its saturation. As a result, the preferences of the consumers have started changing and consumers are no more concerned about the brand loyalty today.
These factors are compelling firms in the automotive manufacturing space to leverage the use of supply market intelligence. Supply market intelligence provides seamless solutions to the above concerning factors and assist firms across the automotive manufacturing space to develop a superior product and service offerings while reducing their procurement spends. These solutions also help companies gain recommendations on formulating procurement best practices.
The Business Challenge and Journey
The client, a prominent automotive manufacturing major with manufacturing units spread across the globe, had a primary objective of improving efficiency and productivity of their procurement function while enabling a robust pre-purchase approval system to achieve conversant purchases. Additionally, with the help of supply market intelligence, the client wanted to migrate from their current manual, decentralized, and multiple stage procurement process and to a robust, automated, and centralized procurement method with the aim of realizing improved productivity and higher savings.
The supply market intelligence experts at SpendEdge tailored a wide-ranging research methodology which comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures to help the client achieve a solitary view of the enterprise-wide procurement spend and drive higher savings.
During the course of this supply market intelligence engagement, the automotive manufacturing client was recommended with a faster payment cycle which aided them in capturing the early payment discounts. Additionally, the client enhanced their integration with suppliers through robust portal connectivity. This further helped them manage indirect spend across the supply chain more efficiently.
Fundamental questions answered in this supply market intelligence engagement
With the help of this supply market intelligence engagement, the automotive manufacturing client achieved tighter control and compliance across their business units, gained better visibility on corporate spend across suppliers and categories, and subsequently enhanced their overall capability and productivity.