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The automotive industry is struggling -
fundamental changes are occurring, and global
economic conditions are requiring executives to
rethink strategy. A
move towards leaner brands and sustainable
capacity are shaking up OEMs who are hard
pressed to continue to keep up, resulting in
heavy pressure for instant change. Global
auto demand is off by an average of -15%
year-over-year, with growth areas (emerging
markets, high MPG products and hybrids) wreaking
havoc and threatening the viability of some of
the biggest companies in the world.
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The key to success in the automotive industry is
responding quickly to produce products customers
want without passing on the cost of innovation.
However, providing a product quickly while
delivering what the customer wants and needs is
easier said than done and nearly impossible to
sustain. Understanding what customers want,
today, instantly designing and building a
product that clearly fulfills their wants and
needs, while delivering the quality and
safety of the brand have become
make-or-break capabilities.
The automotive industry struggles are compounded
by the pressure on the supply chain to
continuously reduce their cost position.
Unprofitable, broad and expanding brands place
suppliers in a position of lower and lower
profit margins. Consolidation is likely to
continue to reshaping the industry as
stakeholders look for value through scale.
To find
out more about WGA's work
in this industry, please
contact the practice. |
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Client
Experience |
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Global auto manufacturer
seeks ITO quality and
innovation at a significantly
reduced cost position
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1.
Problem:
Accelerate/Improve
innovation and reduce annual
costs to respond to economic
conditions.
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2.
Approach: Analyze
global
operations, determine commodity
services and prioritize. Supplier
"right fit" and capability
selection.
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3.
Solution:
Rationalized Strategy,
focused on maturing internal
processes to support change.
Supplier selection, negotiation
and transition.
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4.
Results: Reduced
annual
Application Maintenance costs
by $25M/year, improved
execution capability and
innovation responsiveness.
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