--- title: "08: Avoiding loss-making projects: How automotive suppliers stay profitable with a system" description: "Avoiding loss-making projects: How automotive suppliers stay profitable with a system" --- [Automotive Supplier Sales ](https://digital-automotive-supplier.com/en/blog) # [08: Avoiding loss-making projects: How automotive suppliers stay profitable with a system](https://digital-automotive-supplier.com/en/blog/avoiding-loss-makers) Written by [Erik Reiter](https://digital-automotive-supplier.com/en/blog/author/erik-reiter) | May 16, 2025 4:00:00 AM   Price pressure is enormous in the automotive supply industry. This makes it all the more alarming that **individual loss-making projects** can be enough to jeopardize the earnings of an entire company. And the worst thing about it: many of these projects are **already recognizable as loss-making in the award phase** - they are acquired anyway. How do such decisions come about? And above all: how can loss-making projects be **systematically avoided**? The answers lie in a structured, digital sales process - as made possible by the **Digital Automotive** platform. ### **The actual cause: Mistakes in the RfQ process** The majority of loss-making projects do not occur in series production, but rather **during the acquisition process**. To be more precise: during the quotation calculation. Typical causes are - Non-transparent or incorrect calculations - Incorrect pricing assumptions - Poor coordination between sales, costing and project management - Lack of control and approval processes The result: projects that generate sales but cost money in the long term - and therefore block valuable resources, tie up capacity and impact the operating result. ### **The consequences are serious** A single loss-making project can - "overlap" several profitable projects - jeopardize strategically important customer relationships - undermine the trust of management and shareholders Particularly dramatic: the actual loss often remains **invisible** for a long time because the causes can no longer be traced in the early phase. In many companies, the classic RfQ process is **not systematically documented** - and therefore not verifiable. ### **The solution: a digitally managed acquisition process** Lost projects are not destiny - they are the result of **a lack of transparency** and **error-prone processes**. These risks can be significantly reduced with a consistently digitalized quotation process. A modern sales framework, such as the one offered by **Digital Automotive**, comprises four central levers: #### **1. Creating transparency throughout the entire acquisition process** All relevant information - from the initial customer inquiry to the final calculation - must be **digitally documented and accessible**. This is the only way to identify deviations, understand decisions and evaluate offers on a sound basis. Digital platforms enable **end-to-end RfQ transparency** here: - Complete documentation of customer requirements - Version history of calculations - Central data storage for all departments involved #### **2. Systematically establish the 4-eyes principle** One of the most effective measures against errors is the classic **dual control principle** - not as an informal process, however, but as **a bindingly documented and system-supported** one. In concrete terms, this means - Every assumption relevant to costing is checked and approved - All decisive steps (e.g. price approvals, technical assessments) are **digitally signed off** - Decisions are **traceable** and audit-proof This not only improves the quality of quotations, but also protects the sales department from "going it alone" or making assumptions without a sound basis. #### **3. System-side safeguarding of the calculation basis** Incorrect calculation factors - such as raw material prices, machine costs or exchange rates - are a common reason for incorrect quotations. To prevent this, these factors must be **centrally maintained and systemically validated**. In practice, this means - Use of **valid, centrally stored values** for all quotations - Automatic plausibility checks and warnings in the event of deviations - **Seamless transfer of** the approved values to the CBDs (Customer Business Documents) This ensures **consistency between sales data and series implementation** - a decisive lever for profitability. #### **4. Standardized quotation approval with digital signature** At the end of the process is the final quotation approval - and this must also be **structured, traceable and controlled**. A **digital offer approval with an electronic signature** from all relevant stakeholders ensures this: - Binding nature - Clarity about responsibilities - Traceability for subsequent reviews or audits Only if this final instance functions reliably can risks be identified before the contract is awarded and losses avoided. ### **Digital Automotive: the solution for loss-free growth** The mechanisms described above are fully integrated into the **Digital** Automotive platform. As the leading solution for **Strategic Sales Planning & Sales Management** in the supplier industry, it offers - A **complete digitalization of the RfQ process** - Standardized workflows with **4-eyes principle** - Central calculation factors with system validation - Digital approvals with signature function - Seamless documentation of all quotation decisions This not only makes sales more efficient, but above all **strategically controllable and economically secure**. ### **Conclusion: control creates profit** Loss-making projects do not occur in series production, but during the awarding process - and are avoidable. What is needed is **systemic control, digital transparency and clear responsibilities**. Only then can sales become a profitable growth driver. With a platform like **Digital Automotive**, this is exactly what can be achieved. It turns quotation preparation into a strategic, fact-based process - and ensures that your company **not only grows, but also earns**.     [View full post](https://digital-automotive-supplier.com/en/blog/avoiding-loss-makers) ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Erik Reiter" }, "dateModified" : "2025-05-16T04:00:00.791Z", "datePublished" : "2025-05-16T04:00:00Z", "headline" : "08: Avoiding loss-making projects: How automotive suppliers stay profitable with a system", "image" : { "@type" : "ImageObject", "height" : 60, "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png", "width" : 60 }, "mainEntityOfPage" : "https://digital-automotive-supplier.com/en/blog/avoiding-loss-makers", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png", "width" : 60 }, "name" : "Automotive Supplier Sales" } } ```