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CHANGE PERFORMANCE

Profit Increase Driven by Digital Change Management for a Wire Harness Supplier

 Case Focus

  • Profit increase

  • Efficiency gains

  • Transparency gains

DA Icon_1024x1024px_Light Blue-White_RGB Modules

 Icon_ICO_Change  Change

 Icon_ICO_Price  Price

 

Background

 

A leading wire harness supplier faced significant challenges managing several thousand engineering changes and hundreds of projects, many of them with over 1,000 part numbers. Their outdated, self-programmed software combined with Excel spreadsheets resulted in a highly inefficient, non-transparent process that lacked a focus on profitability. Additionally, their Excel spreadsheets were riddled with many errors, as seen at many automotive suppliers.

 

Challenges

  • High Volume of Changes: Managing thousands of engineering modifications across multiple projects.

  • Inefficiency: Outdated software combined with error-prone Excel spreadsheets.

  • Lack of Transparency: No clear visibility into processes and profitability.

  • Complex Price Management: Handling various price changes driven by amortizations, index changes, and lifetime price-reductions (handling exclusions from price reductions for specific components).

 

DA Icon_1024x1024px_Light Blue-White_RGB Solution


Digital Automotive Change and Price Management provided a comprehensive solution to streamline operations and enhance profitability:

  • Integration with PLM Systems: Automated input data integration from Product Lifecycle Management (PLM) systems.

  • Customer-Specific Templates: Implemented tailored price and cost templates for individual customers.

  • Multiple Price Optimization Possibilities: Provided various options to optimize prices and price components.

  • Profit Reporting: Profits are automatically calculated for individual changes during pricing or cost optimization and then aggregated into project profit reports and across all projects, possibility to segment by region, customer, or business unit.

  • Price List Updates: Automatically updated price lists, feeding directly into sales planning.

  • Quotes in Customer Formats: Generated quotes in customer-specific formats based on the price tracking list.

  • Complexity Management: Efficiently managed engineering and all types of price changes.

 

DA Icon_1024x1024px_Light Blue-White_RGB Results

  • Profit-Focused Sales Organization: Shifted the sales approach to focus on profitability.

  • Transparent Price History: Maintained a clear price (and cost) history throughout the entire product lifecycle.

  • Efficiency Boost: Significantly increased process efficiency by an highly automated process.

 

 

By leveraging Digital Automotive’s Change and Price modules, the wire harness supplier transformed its sales management into a streamlined, transparent, and profit-focused system.

 

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