Consulting in the automotive sector

The age of combustion engines is coming to an end – at least for the automotive industry. However, vehicles should not only drive emission-free, they should also be built in a way that is as carbon-neutral as possible. To fulfil these goals, the automotive sector needs new partners.

Automotive industry as a pioneer for procurement

The procurement organizations in the automotive industry are seens as some of the best in the world. For car manufacturers and suppliers, procurement is a core function, closely integrated with innovation management and production. However, in view of the change to zero-emission mobility, new skills and cooperation are required.

It is not only important to develop strategies for electromobility together with existing suppliers, but also to approach new partners for innovative mobility services. To realize the mobility turnaround with competitive cost structures, our automotive experts assist you with tailored automotive consultancy.

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Acceleration in alternative engines

After years of tightening emisson regulations, the European Union has decided to phase out combustion engines for passenger cars from 2035. For OEMs and suppliers, this means that the transition to carbon-neutral powertrains must happen faster than some had originally planned. Additionally, it is no longer possinle to cross-finance research and development in the near future using revenue from thesale of diesel and gasoline-powered automobiles.

Suppliers with a focus on traditional powertrains must accelerate their transition to new business areas. You can find out how this can be done here.

Demand for decarbonisation

The EU’s requirements do not stop at emission-free propulsion: in future, cars should not only drive CO2-free, but also be produced without emissions. The automotive sector is no stranger to fast innovation cycles, intense cost pressure, and tight supply chain integration across the globe. Because of this, it appears that the automotive industry and its suppliers are more prepared than other sectors for the new challenge of  decarbonization. However, in order to create emission-free vehicles in a carbon-neutral manner and at the same time to make them profitable, large sums will need to be invested within a short period of time.

The Coronavirus pandemic and its impact on supply chains have also demonstrated that even OEMs, which – compared to other industries – have a relatively high level of supply chain transparency and established risk management processes, still need to make their supply chains more resilient. Forecasting and risk management need to be further optimized.

Cost-efficient and sustainable procurement of scarce raw materials

The transition to e-mobility has greatly increased the complexity of obtaining raw materialsDue to the circumstances in which they are mined and produced, raw materials for electric, such as nickel, cobalt, and rare earths, have been challenging to obtain in a suitable way. However, more and more consumers are now placing demands on businesses to uphold social and environmental standards across their supply chains.

In addition, many of the materials are subject to strong price fluctuations. Solutions for cost-efficient raw material procurement can be found here.

The combination of sustainability and cost-efficiency criteria poses a special challenge for the procurement of critical raw materials. Our experts support you in mastering this challenge.

The semiconductor crisis has shown with unprecedented clarity that automotive manufacturers and suppliers are not only competing for resources within the industry, but also have to face competition across industries. This is especially true for the consumer electronics sector, where a few large players with high innovation speed dominate the market. Here it is important to guarantee supply security at all times through precise forecasting and stable partnerships.

Selected clients from the automotive sector

 

Our experts in the automotive sector

Paul Zahn

Managing Director

contact@inverto.com Contact

Jan Mersmann

Principal

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Our automotive insights

INVERTO Magazines

In view of the current crises, companies and their procurement departments have to face a wide variety of challenges - reconciling sometimes conflicting objectives is a balancing act that can only succeed if the management team is actively involved, as we explain in the cover story.

Client Case

We were commissioned to support procurement in closing the target gap in the planned savings.

INVERTO Magazines

Due to the many recent crises, global supply chains have been restructured, and Moroccan companies now prefer direct supply relationships.