Cost pressure has always been and will continue to be on the suppliers' agenda: Productivity improvements on ~4 percent per year have become a standard in the auto industry. Consequently, operational excellence in production in terms of cost, quality, flexibility, and speed is indispensable for automotive suppliers.
Many suppliers need to adapt their production footprint to reduce structural cost, gain access to new markets, and satisfy the demand of their OEM customers on a global basis. This is a complex task since the footprint redesign needs to take into account different – often conflicting – perspectives and must be consistent with the company's strategy and technology roadmap.
Oliver Wyman has developed a unique, proven approach for improving production profoundly, sustainably, and quickly. We focus on strategy and vision, operational processes, footprint optimization, shop floor improvements, management systems, and culture and behavior. We conceive the strategies together with our clients and then provide implementation support.
Automotive suppliers need to optimize their footprint and address product allocation in a strategic way while growing globally to avoid EBIT penalties.Lars Stolz Global Head Operations Practice, Partner Automotive