Cost and process optimizations in the automotive industry

General background
Even if the entire automobile industry enjoyed significant successes within the last years, the industry segment is currently confronted with high sale decreases and employment declines on account of the global economic crisis. Decreasing raw material prices do not signify any advantage due to the OEM’s released cost reduction pressure. According to forecasts, automobile suppliers face employment decreases converting positive EBIT into losses which rapidly leads to market shake-outs and consolidations. Only financially strong suppliers can emerge from the economic crisis. 

Challenges
On account of the global economic crisis the supplier’s current emphasis is on securing and maintaining its financial power. Suppliers own particular cost structure cannot be adjusted and reduced fast enough to coincide with abrupt drops in turnover. Therefore, it is increasingly important to identify opportunities that guarantee short-term cost reductions.

BERODE Competence
Our consultants at BERODE GmbH are well-grounded in Supply Chain optimizations in consideration of the company’s costs aspects. Our consulting approach involves renegotiations of prime costs and payment conditions as well as fixed capital reduction. At present our functional focus is on increasing short-term liquidity.
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