OEMs regularly define their vehicle program and this often results in a trade-off between the offer (vehicle range, industrial capacity, finished goods inventories etc.) and the demand (customer orders, distribution company replenishment needs etc.). This vehicle program is the result of industrial and commercial gambles that answer contradictory objectives: minimum options and a reduced range of vehicles on the production side versus maximum model flexibility and a broad range of options on the sales side.
This can result in planning that creates instability in the value chain, with excessive safety stock levels, delivery shortages and over consumption of resources. This in turn can increase costs. At the same time the OEM’s buyers have difficulty in optimizing their target costs from their Tier 1 suppliers.
We have developed a complete solution to help OEMs planning effectively.
In the short to mid-term, this solution enables OEMs to increase their sales by 3% to 5% as well as drastically reduce their operating working capital.
In the long term the increased accuracy of procurement forecasts helps the OEM’s suppliers significantly reduce risks and can lead to reductions in sourcing costs by a further 2% to 5%.
The fundamentals of our solution are to: