Alarmingly, more than 60%<\/strong> of original equipment manufacturers and suppliers 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>\nIn 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 \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>\nTo reflect the new market realities and create a stronger engagement with suppliers, 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 – must adopt a more flexible approach to procurement that does not depend for its success on their established market power.<\/p>\nTo 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>
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
OEMs must 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>\nWith KGM Strategy’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
Download the white paper today to unlock the insights and strategies that will place your procurement team at the heart of your company’s transformation journey.<\/strong><\/p><\/div>\/\/<\/span> The supply chain’s share in vehicle value soars\u00a0<\/span><\/strong><\/p>\n
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*Selected OEMs with deep integration into main components<\/em><\/p><\/div><\/div><\/div>
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\nHere you can download the white paper free of charge:<\/strong><\/span>
\nTo receive the results presentation, fill out the contact form. You will then receive the entire study by mail.<\/p>\n