In the complex world of automotive suppliers, sales is no longer just a playing field for shrewd salespeople with a gut feeling. Rather, it is becoming a strategic powerhouse that plays a decisive role in determining the success or failure of a company. However, many companies still lack one key tool: an integrated price management system.
If you ask around in the sales departments of automotive suppliers today, you come up against a sobering reality. In many cases, pricing and price maintenance are still carried out using Excel spreadsheets - individually designed, full of formula errors, without history, without control. The result? Non-transparent processes, a lack of compliance, no systematic profit target - and above all: a considerable risk to the margin.
Incorrect calculations creep in, as do forgotten transfers of price changes or allocations to central price lists. Sales staff often enjoy a creative freedom that does more harm than good. And all this in a market in which margin pressure, complexity and regulatory requirements are constantly increasing.
The consequences of a lack of a price management system are serious - especially financially. Without end-to-end processes, margins are lost due to:
Miscalculations based on inconsistent or outdated data.
Price changes that are not transferred, for example due to engineering changes or material cost surcharges.
Individual interpretations in pricing that lead to uncontrolled price negotiations.
Lack of traceability if pricing decisions are not documented or historically traceable.
In short: Sales does not act as a strategic unit, but as a patchwork of operational improvisation. And that costs - above all profit.
What is missing is a central, software-supported system that standardizes, automates and makes pricing comprehensible. This is exactly where Digital Automotive comes in - with an integrated solution that has been specially developed for the requirements of automotive suppliers.
Calculation factors, surcharges and price components are taken from a centrally maintained database - always up-to-date, consistent and audit-proof. This eliminates the error-prone nature of manual Excel maintenance.
Digital Automotive integrates all pricing steps into a single platform. This makes formula errors, duplicate data storage and media disruptions a thing of the past.
System-integrated targets for contribution margins and margins make profitability measurable and controllable - including digital approval processes for deviations.
The system ensures that defined costing specifications are adhered to exactly - for example, no long-term agreements (LTAs) on purchased materials with fixed prices.
All changes, surcharges and adjustments are automatically transferred to the master price list - and from there directly to the SAP system. This creates a continuous, digital process without manual gaps.
Price lists are created in a standardized way and at the touch of a button - including Customer Breakdown Documents (CBDs), which can be generated automatically.
Every price decision is documented from the first quotation to the end of production (EOP). This means that changes can be tracked at any time - a huge advantage for audits, recalculations or internal reports.
In an increasingly competitive market environment, price management is no longer an operational detail, but a strategic must. Those who rely on Excel solutions or manual processes not only risk making mistakes, but also actively give away margins.
With an end-to-end, digitalized price management system such as Digital Automotive, automotive suppliers not only create transparency and efficiency, but also secure their long-term competitiveness.
Because at the end of the day, it's not the lowest price that counts - it's the smarter process.
Would you like to find out more or see a live demo?
Visit us at: digital-automotive-supplier.com
Erik Reiter: May 30, 2025 6:00:00 AM
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