Cost savings is highly relevant for the very difficult situation the automotive industry is currently facing.
The transformation of the automotive industry is expensive but important, thus companies must be able to handle this shift successfully. In the automotive industry, this is becoming a real problem due to the multitude of simultaneous challenges e.g. high investments in new technologies such as electromobility, which will further dilute the industry’s profit margins. At the same time, almost all-important markets are weakening right now.
In addition, procurement organizations are facing increasing complexity on all fronts and need to deliver cost savings and extend their business impact into strategic areas such as innovation. That’s why cost structures require high attention. Even companies with a good history of profit margins continually target areas where they can further realize cost savings.