Why an automated claim process for exchange rate, material and energy variances is essential

Minimal margins are a reality in the automotive supply industry. A project that looks profitable today can be a loss-making business tomorrow - if exchange rates, material or energy costs rise.

The problem: Hidden sources of loss due to cost variances

Many suppliers struggle with significant cost variances compared to the award status - but without a structured claim process, money falls by the wayside.

- Exchange rate fluctuations cause unforeseeable losses

- Material and raw material prices rise rapidly, often without immediate compensation

- Energy prices fluctuate and drive up production costs uncontrollably

If these deviations are not actively managed, companies quickly end up with long-term loss-making projects.

An end-to-end claim process for transparent renegotiations

1. Automated detection of all deviations from the CBD (cost break down)

Cost changes cannot be avoided - but their early identification can. Automated recording of deviations in exchange rates, material prices and energy costs makes it possible to make risks immediately visible.

2. End-to-end claim process - from definition to payment

Many companies do not have clear processes for managing claims. A structured process ensures that all relevant steps run seamlessly:

- Definition of the deviation and analysis of the contractual clauses

- Calculation of the claim with a sound database

- Negotiation with OEMs on the basis of contractual provisions

- Follow-up until final payment

3. Regular reporting and systematic follow-up of open claims

A claim that is not followed up is a lost claim. With a structured reporting process, companies can keep track of open, processed and closed claims.

4. Visualize and incentivize claim performance

A well-functioning claims process not only protects margins - it can actively contribute to increasing earnings. Transparent dashboards and targeted incentives for sales teams help to consistently enforce claims and optimize them in the long term.

The solution: Digital Automotive for fully automated claim management

Manual renegotiations and Excel tracking are a thing of the past. Digital Automotive offers an integrated solution for claim management:

- Automated detection of deviations in exchange rates, materials and energy

- Consistent end-to-end claim process for structured negotiations

- Real-time reporting and tracking of all claims

- Performance tracking to optimize future processes

Conclusion: cost increases are inevitable - uncompensated losses are not

Times of fluctuating exchange rates, rising material prices and uncontrolled energy costs are here to stay. But suppliers who do not have a structured claims process are losing millions every year.

With automated claim management, companies can identify their cost variances immediately, enforce claims efficiently and protect their profitability in the long term.

👉 Learn how Digital Automotive can transform your claim management. Book a live demo now at Digital Automotive Contact