{"id":97814,"date":"2024-02-20T10:22:03","date_gmt":"2024-02-20T09:22:03","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=97814"},"modified":"2024-10-10T14:22:43","modified_gmt":"2024-10-10T12:22:43","slug":"unveiling-the-future-of-automotive-procurement-invertos-blueprint","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/unveiling-the-future-of-automotive-procurement-invertos-blueprint\/","title":{"rendered":"Blueprint: Unveiling the future of automotive procurement"},"content":{"rendered":"<p><div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><p><span style=\"color: #004146;\"><strong>As the automotive industry faces the triple challenge of electrification, autonomous driving, and innovative mobility models, the role of procurement has never been more critical. Our white paper unveils the pivotal role that procurement plays in steering automotive companies \u2013 OEMs and n-tier suppliers &#8211; through this transformative era. It introduces a groundbreaking Strategic Procurement Model meticulously designed for industry professionals. A turnkey solution to revamp and supercharge automotive procurement functions.<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>The centrality of procurement in automotive transformation<\/h2><\/div><\/div><\/div><div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p><iframe loading=\"lazy\" src=\"https:\/\/player.flipsnack.com?hash=RTk4RjhEODhCN0ErdnRwc2tuaGJkYw==\" width=\"100%\" height=\"450\" frameborder=\"0\" scrolling=\"no\" seamless=\"seamless\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><strong><span style=\"color: #a0d60a;\">\/\/<\/span> Preview | Table of contents &amp; text extract<\/strong><\/p><\/div><div class=\"col-lg-6\"><p>In an era marked by rapid and unprecedented transformation within the automotive industry, the key to not just surviving but thriving lies in redefining the core of business operations: procurement.<\/p>\n<p>The <strong>sharp increase in value-add accounted for by suppliers<\/strong> in next-generation electric vehicles has far-reaching implications for the industry and for the strategic importance of the procurement function. <strong>Procurement is at the sharp end of many of the industry\u2019s most pressing challenges<\/strong>: being the main lever in response to huge cost pressures, being able to manage more effectively along the value\u00a0chain and identifying new players on the market. Equally, with an <strong>increase in outsourced value-add<\/strong>, new opportunities are opening up for suppliers to expand their relationships with major customers.<\/p>\n<p><a class=\"btn btn-primary\" href=\"#download\">Download white paper<\/a><\/p><\/div><\/div><\/div><div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><p>&nbsp;<\/p>\n<div class=\"icon-boxes  \" data-moduleID=\"97825\" is=\"summary-box\">\n    <div class=\"summary-box-padding overflow-visible\">\n        <div class=\"icon-box has-icon pos-left fadeIn\" style=\"border-color: rgb(160, 214, 10);\" data-animated-icon=\"true\">\n            \n                <div class=\"icon\">\n                    <div class=\"inner\">\n\n                                                                                    <svg id=\"animatedIcon-b78cf832d5fb49f70909d6b14e267b1e\" data-id=\"b78cf832d5fb49f70909d6b14e267b1e\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" x=\"0px\" y=\"0px\" viewBox=\"0 0 64 64\" xml:space=\"preserve\" width=\"75\" height=\"75\">\n                                    <path fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" d=\"M43,16.4c-3.2-3.1-7.4-4.6-11.8-4.4C23,12.4,16.3,19.2,16,27.4c-0.2,5.1,2.1,10,6.1,13.2C24,42,25,44.1,25,46.2V47h6V34.5l-5.5-3.7c-0.5-0.3-0.6-0.9-0.3-1.4c0.3-0.5,0.9-0.6,1.4-0.3l5.4,3.6l5.5-3.6c0.5-0.3,1.1-0.2,1.4,0.3c0.3,0.5,0.2,1.1-0.3,1.4L33,34.5V47h6v-0.8c0-2.2,1-4.2,2.9-5.7C45.8,37.5,48,32.9,48,28C48,23.6,46.2,19.5,43,16.4z\"\/>\n                                    <path d=\"M27,49h-2v5c0,0.5,0.5,1,1,1h1.1h9.8H38c0.5,0,1-0.5,1-1v-5h-2H27z\" fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\"\/>\n                                    <path d=\"M32,60c3,0,4-2,4-3h-8C28,58,29,60,32,60z\" fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" \/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"9.9\" y1=\"10.5\" x2=\"16.4\" y2=\"15.6\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"47.9\" y1=\"36.6\" x2=\"54.4\" y2=\"41.7\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"9.5\" y1=\"41.4\" x2=\"15.8\" y2=\"36.1\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"48.2\" y1=\"15.7\" x2=\"54.5\" y2=\"10.4\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"32\" y1=\"1.8\" x2=\"31.9\" y2=\"10\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"14.1\" y1=\"26\" x2=\"5.8\" y2=\"26\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"58.1\" y1=\"26\" x2=\"49.9\" y2=\"26\"\/>\n                                <\/svg>\n                            \n                        \n                    <\/div>\n                <\/div>\n\n            \n            \n                <h3 class=\"title\" style=\"color: rgb(160, 214, 10)\">\n                    Highlights of the automotive white paper\n                <\/h3>\n\n                <div class=\"content\">\n                    <ul class=\"arrow-right-list\">\n<li>21 pages on the crucial role of procurement in navigating automotive&#8217;s challenges<\/li>\n<li>Emerging profit pools &amp; the power of (new) suppliers<\/li>\n<li>Procurement\u2019s role in the auto evolution<\/li>\n<li>A new Strategic Procurement Model for the auto industry:\n<ul>\n<li>The six automotive procurement categories: Components, xEV, Software &amp; Application, ADASA\/AV, Extinction, Service &amp; After Sales<\/li>\n<li>The six dimensions of a future-facing procurement strategy<\/li>\n<\/ul>\n<\/li>\n<li>Applying the KGM Strategy Strategic Procurement Model<\/li>\n<\/ul>\n\n                <\/div>\n\n            \n        <\/div>\n    <\/div>\n<\/div>\n\n\n<div class='container  py-3'><\/div> <div class=\"row \"><\/div><div class=\"col-lg-12\"><\/div>\n<h2>Why this white paper is a must-read for automotive leaders<\/h2><\/div><\/div><\/div><div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-97834 alignnone\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/02\/automotive-wp-strategic-model.png\" alt=\"\" width=\"600\" height=\"597\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/02\/automotive-wp-strategic-model.png 626w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/02\/automotive-wp-strategic-model-250x250.png 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/02\/automotive-wp-strategic-model-75x75.png 75w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p><\/div><div class=\"col-lg-6\"><p>Alarmingly,<strong> more than 60%<\/strong> of original equipment manufacturers and suppliers <strong>have \u00a0yet to begin adapting their operations<\/strong> to this new reality, a delay that poses significant risks to their competitive standing and long-term viability.<\/p>\n<p>In navigating the electric vehicle (EV) transition, OEMs must abandon the idea that, even though many of the components and systems they use have changed the way their organisation operates can remain the same. The <strong>\u201cbusiness as usual\u201d mindset represents a serious liability<\/strong> for companies attempting to migrate to emerging profit pools. Procurement will need to change across all dimensions including management structures, risk management, supplier relationship management, the contracting model and so on.<\/p>\n<p>To reflect the new market realities and create a stronger engagement with suppliers, <strong>the automotive industry needs a new strategic procurement model<\/strong>. At its core is the idea that industry players \u2013 OEMs and n-tier suppliers &#8211; must adopt a more flexible approach to procurement that does not depend for its success on their established market power.<\/p>\n<p>To guide the approach as companies transition to EV procurement and help them to decide the best way to address different procurement needs and suppliers, KGM Strategy has developed a Strategic Procurement Model offering guidance.<\/p><\/div><\/div><\/div><div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p>For established original equipment manufacturers (OEMs), the challenges of the shift to electric vehicles (EV), particularly battery EVs (BEVs), are crystallised in the transformation of the industry\u2019s supply chain. Thousands of components required to produce Internal Combustion Engine (ICE) vehicles are replaced by batteries, electric motors, and software. The resulting change in the supplier landscape is profound.<\/p>\n<p>OEMs must <strong>develop partnerships with new suppliers from outside their industry<\/strong>. With much of their user experience \u2013 and therefore brand and product differentiation \u2013 now dependent on software and user interfaces, automotive manufacturers must secure access to the technology expertise that will determine their future success.<\/p>\n<p>With KGM Strategy&#8217;s guidance, transform your procurement into a high-performance engine that propels your company into a new era of efficiency, innovation, and strategic prowess.<\/p>\n<p><strong>Download the white paper today to unlock the insights and strategies that will place your procurement team at the heart of your company&#8217;s transformation journey.<\/strong><\/p><\/div><div class=\"col-lg-6\"><p><strong><span style=\"color: #a0d60a;\">\/\/<\/span> <span style=\"color: #004146;\">The supply chain&#8217;s share in vehicle value soars\u00a0<\/span><\/strong><\/p>\n<p class=\"fade-in-from-left\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-98090\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/02\/Automotive-Grafik.png\" alt=\"\" width=\"749\" height=\"398\" \/><\/p>\n<p><em>*Selected OEMs with deep integration into main components<\/em><\/p><\/div><\/div><\/div><span id=\"download\"><br \/>\n<\/span><br \/>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-6\"><p><span style=\"color: #a0d60a;\"><strong id=\"download\">Here you can download the white paper free of charge:<\/strong><\/span><br \/>\nTo receive the results presentation, fill out the contact form. You will then receive the entire study by mail.<\/p>\n<p><script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js-eu1.hsforms.net\/forms\/embed\/v2.js\"><\/script><br \/>\n<script>\n  hbspt.forms.create({\n    region: \"eu1\",\n    portalId: \"143321638\",\n    formId: \"e6ee4d36-b871-46d9-a3d9-f9b4d6514068\"\n  });\n<\/script><\/p><\/div><div class=\"col-lg-6\"><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-97848 size-medium\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2023\/10\/automotive-wp-preview-en-444x630.png\" alt=\"\" width=\"444\" height=\"630\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2023\/10\/automotive-wp-preview-en-444x630.png 444w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2023\/10\/automotive-wp-preview-en.png 657w\" sizes=\"auto, (max-width: 444px) 100vw, 444px\" \/><\/p><\/div><\/div><\/div><span id=\"download\"><br \/>\n<\/span><div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><p>&nbsp;<\/p>\n<h2>Get to know our automotive experts in procurement<\/h2>\n\n    <div class=\"container authors-section fadeIn \" is=\"authors-and-partners\">\n        <div class=\"description row\">\n            <h2>\n                                    Our automotive experts\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\/paul-zahn_350x440px-250x250.png\" class=\"img-fluid\" alt=\"\" \/>\n                            <\/figure>\n                        \n                        <h3>Paul Zahn<\/h3>\n                        <p class=\"person-position\">Managing Director <\/p>\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\/unveiling-the-future-of-automotive-procurement-invertos-blueprint\/\" 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\/2022\/03\/lina_neu_350x440px-250x250.png\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2022\/03\/lina_neu_350x440px-250x250.png 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2022\/03\/lina_neu_350x440px-75x75.png 75w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Lina Tilley<\/h3>\n                        <p class=\"person-position\">Principal <\/p>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:lina.tilley@kgmstrategy.com\" class=\"mail-link\">lina.tilley@kgmstrategy.com<\/a>\n                                                                                                                                                <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/unveiling-the-future-of-automotive-procurement-invertos-blueprint\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                    <\/div>\n    <\/div>\n\n<h2>Further automotive insights<\/h2>\n    <section class=\"module-post-tiles\" data-module-id=\"46734\" data-modul-type=\"animated-numbers\">\n        <div class=\"container overflow-visible\">\n            \n            <div class=\"row\">\n                                                        <div class=\"overflow-hidden col-12 col-sm-6 col-xl-4\">\n                                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/inverto-volatility-manager\/\" class=\"fixed-post-tile\">\n                                                    <figure class=\"fixed-post-tile-image\">\n                                                                    <img decoding=\"async\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/04\/AdobeStock_753462228-456x630.jpeg\" loading=\"lazy\" width=\"2560\" height=\"2560\" alt=\"\" class=\"img-fluid tile-image object-fit\" \/>\n                                                            <\/figure>\n                            <div class=\"fixed-post-tile-content\">\n                                <p class=\"h3\">\n                                                                        <span class=\"fixed-post-tile-content-category\">\n                                                                                    Article\n                                                                            <\/span>\n                                    \n                                    <span class=\"d-none d-lg-block d-xl-none\">KGM Strategy Volatility Manager<\/span>\n                                    <span class=\"d-lg-none d-xl-block\">KGM Strategy Volatility Manager<\/span>\n                                <\/p>\n                                                                <button type=\"button\" class=\"btn btn-tertiary\">\n                                    Read more\n                                <\/button>\n                                                            <\/div>\n                                                <\/a>\n                                            <\/div>\n                                                        <div class=\"overflow-hidden col-12 col-sm-6 col-xl-4\">\n                                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/clients\/procurement-development-at-a-leading-oem\/\" class=\"fixed-post-tile\">\n                                                    <figure class=\"fixed-post-tile-image\">\n                                                                    <img decoding=\"async\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/09\/oem_automotive_header.jpg\" loading=\"lazy\" width=\"2200\" height=\"2200\" alt=\"\" class=\"img-fluid tile-image object-fit\" \/>\n                                                            <\/figure>\n                            <div class=\"fixed-post-tile-content\">\n                                <p class=\"h3\">\n                                                                        <span class=\"fixed-post-tile-content-category\">\n                                                                                    Client Case\n                                                                            <\/span>\n                                    \n                                    <span class=\"d-none d-lg-block d-xl-none\">Procurement development at a leading OEM<\/span>\n                                    <span class=\"d-lg-none d-xl-block\">Procurement development at a leading OEM<\/span>\n                                <\/p>\n                                                                <button type=\"button\" class=\"btn btn-tertiary\">\n                                    Read more\n                                <\/button>\n                                                            <\/div>\n                                                <\/a>\n                                            <\/div>\n                                                        <div class=\"overflow-hidden col-12 col-sm-6 col-xl-4\">\n                                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/forging-ahead-sourcing-strategies-for-green-steel\/\" class=\"fixed-post-tile\">\n                                                    <figure class=\"fixed-post-tile-image\">\n                                                                    <img decoding=\"async\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/sustainable-procurement-header-small-new-456x630.jpg\" loading=\"lazy\" width=\"2200\" height=\"2200\" alt=\"\" class=\"img-fluid tile-image object-fit\" \/>\n                                                            <\/figure>\n                            <div class=\"fixed-post-tile-content\">\n                                <p class=\"h3\">\n                                                                        <span class=\"fixed-post-tile-content-category\">\n                                                                                    Article\n                                                                            <\/span>\n                                    \n                                    <span class=\"d-none d-lg-block d-xl-none\">Forging ahead: Sourcing Strategies for Green Steel<\/span>\n                                    <span class=\"d-lg-none d-xl-block\">Forging ahead: Sourcing Strategies for Green Steel<\/span>\n                                <\/p>\n                                                                <button type=\"button\" class=\"btn btn-tertiary\">\n                                    Read more\n                                <\/button>\n                                                            <\/div>\n                                                <\/a>\n                                            <\/div>\n                            <\/div>\n                                    <\/div>\n    <\/section>\n<\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the automotive industry faces the triple challenge of electrification, autonomous driving, and innovative mobility models, the role of procurement has never been more critical. <\/p>\n","protected":false},"author":10,"featured_media":97868,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Unveiling the future of automotive procurement | KGM Strategy","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[721,714,707],"tags":[],"class_list":["post-97814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automotive-mobility","category-procurrement-transformation","category-white-paper"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/97814","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 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