Cost Modeling for a Heavy Automotive Manufacturer to Find Potential Saving Opportunities
Project Duration (Months)
0
M
Commodity Groups
0
Spend (billion)
0
$
Part Numbers
5000
K
Cost Models
0
Accuracy (3-5%)
3
%
Challenges​
Context
Approach
Results
Challenges​
- Product classification and categorizations
- Identifying technical cost drivers on 2D/ 3D drawings and commercial cost drivers on SAP
- Mining of missing data from available resources
- Minimal available technical client resources
Context
- Create a smart savings eco-system for global supply-chain management with accurate pilot models for price savings based on the analysis of technical and commercial factors
- Create negotiation toolkits for all the identified suppliers under scope and identify supplier reallocation opportunities
Approach
- Identify technical and commercial sources for data collection
- Classify parts based on type and commonality prior to extraction and normalization
- Perform data consistency/formatting checks, create and test model iterations
- Engage in data-driven negotiations with supply base
- Provide training to SMEs and evolve process as necessary to achieve accurate pilot cost models
Results
- Improvements to pricing and MOQ considerations
- An average of 5 to 7% of potential savings achieved
- Supplier reallocation opportunities
- VAVE opportunities identified
