{"id":107884,"date":"2025-01-08T09:56:29","date_gmt":"2025-01-08T08:56:29","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=107884"},"modified":"2025-02-17T16:51:54","modified_gmt":"2025-02-17T15:51:54","slug":"driving-change-your-guide-to-automotive-procurement-transformation-a-video-series","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/automotive-procurement-transformation-video-series\/","title":{"rendered":"Automotive Industry: How Procurement Must Evolve to Drive Successful Transformation"},"content":{"rendered":"<p>&nbsp;<\/p>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>The automotive industry is standing at a crossroads, grappling with disruptions that demand agility, innovation, and strategic foresight. Electrification, autonomous technologies, and changing ownership models are reshaping the sector, forcing OEMs and suppliers to rethink their approaches.<\/p>\n<p>At the heart of this transformation lies procurement\u2014no longer a back-office function but a critical enabler of profitability, resilience, and competitive advantage.<\/p><\/div>\n<div class=\"col-lg-6\"><p>Through this exclusive video series, gain insights into a revolutionary procurement operating model that empowers leaders to steer their organizations toward sustainable success. Discover expert guidance, actionable strategies, and transformative frameworks tailored to the automotive industry\u2019s evolving needs.<\/p><\/div><\/div><\/div>\n<p>&nbsp;<\/p>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h2 class=\"fade-in-from-left\">What are the main challenges currently being faced in the Automotive industry?<\/h2><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><div class=\"text-container\">\n    \n<p>The automotive industry faces unprecedented challenges Electrification, Autonomous driving, New ownership models culminating in the software-defined vehicle of the future!<\/p>\n<p>The BIG3 disruptions are forcing a long-term shift in the automotive profit pools \u2013 away from classic ICE-driven and towards new mobility-driven products. In fact, until 2035, growth will only come from these emerging profit pools.<\/p>\n\n    <div class=\"text-collapsed\">\n        \n<p>Simultaneously, OEMs see themselves in a market that is very likely to stagnate, due to saturation and new ownership models.<\/p>\n<p>Procurement functions are in the perfect position to anticipate and mitigate the risks and opportunities presented by these challenges. They can support a transition into new mobility strategies for companies whose pedigree rests on a century of excellence in mechanical engineering.<\/p>\n\n    <\/div>\n<\/div>\n<button class=\"btn btn-link text-decoration-none text-uppercase text-blue float-none\">\n    <i class=\"icon icon-plus-rounded fs-65 lh-0 mt-n2 me-2 text-orange\"><\/i>\n    Read more\n<\/button><\/div>\n<div class=\"col-lg-6\"><p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/gI9IYh7XSnw?si=qeHSvqNVtM580Lr0\" width=\"100%\" height=\"366\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p><\/div><\/div><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h2 class=\"fade-in-from-left\">So what needs to change in general? And what role does procurement play?<\/h2><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/2MKXNZ4mEcM?si=HNHxdsGejkx2t3V_\" width=\"100%\" height=\"360\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p><\/div>\n<div class=\"col-lg-6\"><div class=\"text-container\">\n    \n<p>In navigating the electric vehicle transition, OEMs and suppliers need to rethink their operations.<\/p>\n<p>The usual way of working \u2013 along the entire development and production process \u2013 is not fit for the new market, which requires increased agility and speed.<\/p>\n\n    <div class=\"text-collapsed\">\n        \n<p>This is especially true for procurement, which is exposed to new products, suppliers and market dynamics, and needs to adapt quickly.<\/p>\n<p>60% of OEMs and suppliers\u00a0have yet to even start adapting their operations\u00a0to these new realities. They are aware, yet global events such as Covid and the semi-conductor shortages have put them behind schedule.<\/p>\n<p>Procurement is at the sharp end of many of the industry\u2019s most pressing challenges and thereby a pivotal lever to:<\/p>\n<ul class=\"checklist\">\n<li>Handle huge cost pressures,<\/li>\n<li>To Effectively manage the value chain, and<\/li>\n<li>To Identify new market players.<\/li>\n<\/ul>\n<p>Yet, the standard approach to procurement in automotive is just not agile enough.<\/p>\n<p>It now has to handle product strategies and integration details with drastically different materials, suppliers and sourcing challenges.<\/p>\n<p>At the same time, it also has to provide the profit margins to fund the journey to innovation and new technologies.<\/p>\n\n    <\/div>\n<\/div>\n<button class=\"btn btn-link text-decoration-none text-uppercase text-blue float-none\">\n    <i class=\"icon icon-plus-rounded fs-65 lh-0 mt-n2 me-2 text-orange\"><\/i>\n    Read more\n<\/button><\/div><\/div><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h2 class=\"fade-in-from-left\">What is key in procurement?<\/h2><\/div><\/div><\/div>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><div class=\"text-container\">\n    \n<p>The automotive industry needs a new strategic procurement approach: That\u2019s why KGM Strategy developed a Strategic Automotive Procurement Model.<\/p>\n<p>At its core is the idea that industry players \u2013 OEMs and N-Tier suppliers alike \u2013 must become more flexible.<\/p>\n\n    <div class=\"text-collapsed\">\n        \n<p>The model clusters automotive procurement into 6 categories which reflect the new structure of the auto industry from the perspective of established OEMs and N-Tier suppliers: Components, xEV, Software and Application, Autonomous Driving, Extinction, and Services and After Sales.<\/p>\n<p>Each of these six categories has different attributes and requires a distinct approach that draws on the procurement strategy matrix.<\/p>\n<p>That covers six dimensions such as Sourcing Model and Incentives, Commercial and Technical Levers or Risk Management.<\/p>\n<p>The model helps to decide the best way to address different procurement needs and find the right approach for it.<\/p>\n<p>CEOs need to act now, and decisively. Procurement needs to be at the heart of the transformation, maximizing value and optimizing costs for a completely changed industry.<\/p>\n<p>It&#8217;s time for procurement teams to revamp the old playbook \u2013 the mission is to innovate at every step of your operation!<\/p>\n\n    <\/div>\n<\/div>\n<button class=\"btn btn-link text-decoration-none text-uppercase text-blue float-none\">\n    <i class=\"icon icon-plus-rounded fs-65 lh-0 mt-n2 me-2 text-orange\"><\/i>\n    Read more\n<\/button><\/div>\n<div class=\"col-lg-6\"><p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/350kytmlYOA?si=umKc-4m3XQ2BIs4W\" width=\"100%\" height=\"360\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p><\/div><\/div><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2 class=\"text-center\">Do you have any further questions? Then contact our experts!<\/h2>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\">\n    <div class=\"container authors-section fadeIn \" is=\"authors-and-partners\">\n        <div class=\"description row\">\n            <h2>\n                                                            Authors\n                                                <\/h2>\n        <\/div>\n\n        <div class=\"row\">\n                            <div class=\"mb-5 col-md-6 mb-md-0\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/JM_AP-1-250x250.jpg\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/JM_AP-1-250x250.jpg 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/JM_AP-1.jpg 400w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Jan Mersmann<\/h3>\n                        <p class=\"person-position\">Principal<\/p>\n                                                    <div class=\"short-desc\"><p>is a Principal at KGM Strategy in Cologne. He advises customers from the automotive sector, medical technology and the process industry, with a particular focus on process optimization<\/p>\n<\/div>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:Jan.mersmann@kgmstrategy.com\" class=\"mail-link\">Jan.mersmann@kgmstrategy.com<\/a>\n                                                                                                                                                <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/automotive-procurement-transformation-video-series\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                            <div class=\"mb-5 col-md-6 mb-md-0\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2025\/01\/Felix-Jantschik-website-250x250.png\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2025\/01\/Felix-Jantschik-website-250x250.png 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2025\/01\/Felix-Jantschik-website-75x75.png 75w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Felix Jantschik<\/h3>\n                        <p class=\"person-position\">Principal<\/p>\n                                                    <div class=\"short-desc\"><\/div>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:contact@kgmstrategy.com\" class=\"mail-link\">contact@kgmstrategy.com<\/a>\n                                                                                                                                                <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/automotive-procurement-transformation-video-series\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                    <\/div>\n    <\/div>\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Explore how to navigate disruption and build resilience with our exclusive video series on a groundbreaking procurement model.<\/p>\n","protected":false},"author":10,"featured_media":107888,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[721,714,706],"tags":[],"class_list":["post-107884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automotive-mobility","category-procurrement-transformation","category-video"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/107884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/comments?post=107884"}],"version-history":[{"count":15,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/107884\/revisions"}],"predecessor-version":[{"id":112046,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/107884\/revisions\/112046"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/media\/107888"}],"wp:attachment":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/media?parent=107884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/categories?post=107884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/tags?post=107884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}