Procurement in
the Automotive Industry
Automotive is defined by high-volume serial production, long-running platforms, and globally distributed manufacturing networks, with multiple plants producing comparable components across regions. Pricing structures are highly complex and driven by numerous external market forces, requiring continuous monitoring and long-term adjustments to safeguard margins. Established supplier relationships tend to reinforce strong supplier power, while automotive manufacturers and Tier-1 suppliers alike struggle with constant margin pressure across global plants.
Discover how ivoflow’s spend analytics platform creates value for procurement teams in the automotive industry.
Typical Procurement Situation
in the Automotive Industry
Production Setup
Automotive relies on global serial production spanning multiple platforms and plants.
BOM Structure
Bill of Materials are large and recurring, consisting of many low- to mid-value items.
Supplier Landscape
Supplier relationships are long-term and resourcing options are limited.
Pricing Behaviour
Pricing has historically evolved in a plant-specific, supplier-driven manner.
Decision Pressure
Decisions affect EBIT continuously, leaving limited room for disruption.
How ivoflow Creates Value
In Automotive Procurement
We automate Saving Levers
for Procurement Organizations
Dual & Multiple Sourcing
The dual and multiple sourcing feature helps diversify your suppliers and identify alternatives to secure your supply chains. This way, you cannot only minimize risks but also make price-optimized decisions for your procurement.
Currency Clawback & Risk
Our tool allows you to keep track of exchange rate fluctuations. It supports you in hedging exchange rate risks in framework agreements with suppliers or in reclaiming currency gains from suppliers.
Localization Opportunity
The tool shows you opportunities to reduce delivery, freight, and customs costs, as well as risks through local sourcing and shorter delivery routes.
Discover the most impactful levers
for your procurement!
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Want to know more
about our procurement solution?
Let us show you how ivoflow can support your business. We are ready to showcase our procurement management system. Together we will find the perfect solution for your company. Feel free to give us a call or e-mail us today!
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