We believe that digitalization is the center of gravity for strategic performance improvement. If done rigors and right, digitalization (synonymously “core redesign”) can generate double digit savings along the P&L – which can be utilized for future re-investments. The challenge is to evaluate and identify the right levers, and to implement those levers with speed and scale.
Until today Automotive OEMs/ Tier-1 supplier previously struggle with performance
- Traditional automotive OEMs/ Tier-1 players exhibit rather low profitability/ operating margin
- Convergence of industries (in e-Mobility, ADAS business etc.) create additional pressure on profitability, and bear risk of limited future ability to (re-)act (innovation/ cost leadership, resilience, independence etc.)
- Along R&D, Costs of Goods Sold and SG&A, Digitalization is a prime lever to optimize profitability and increase operational excellence (overcoming organizational silos, creating end-to-end data transparency etc.)
When implemented effective & efficiently, individual savings from digitalization can amount to double digit savings (P&L expenditure)
- Shaping the P&L/ realizing benchmark potential primarily meaning footprint optimization (best-cost locations, lean processes, FTE/ overhead etc.), in line with suitable tech
- Automotive OEM/ Tier-1 players can expect highest savings from R&D and Costs of Goods Sold (relative P&L gravity; given operations complexity)
- Digitalization around SG&A focuses on “low hanging fruits“ due to often already relatively mature/ standardized processes (accounting, IT etc.)
- Savings: Cost-out existing and/or avoid new total costs
Agile approach to P&L improvements
- We offer vast experience in designing P&L improvement measures and we will help you to think strategically about leveraging digitalization
- We will help you explore the business value and to identify the right scope for short-/mid-term P&L performance push
- We know what it takes to set up and operate an effective digitalization programs and will help you to design and build this in order for you to become faster, more agile and handle your data more efficiently
Strategy & Innovation
Our Specialists
Jost Kamenik
CEO
Performance Improvement
CO₂ & Sustainability
Cost Management
+49 160 92127863
j.kamenik@tsetinis.com
Linkedin®
Florian Roth
Partner and Managing Director
Profitability Programs
Performance Management
Product Costing
+49 175 7285773
f.roth@tsetinis.com
Linkedin®
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