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S&P Global Mobility in Digital Automotive
How do automotive suppliers benefit?
S&P Global Mobility data (formerly IHS) combined with the Digital Automotive processes and reports lead to better decisions, more successful negotiations and significantly less manual data entry and preparation. A gain in efficiency, transparency and quality.
How? By having the right information, at the right place, at the right time, in the right format, and by processing it automatically wherever possible:
1. Automated market analysis reports: designed according to the expectations of automotive supplier management. The S&P Global Mobility production data and forecasts are processed in Digital Automotive into market development, location strategy or market share reports - with absolutely no effort and easily accessible at any time.
2. Sales planning as easy as never before: from the basic market strategy, to the inspiration of specific target vehicles or engines, to the use of S&P Global Mobility data for volume forecasts and project data such as SOP/ EOP or production locations. Less data entry, more transparency in automated sales reports with filters for customers, products, regions, locations and volume scenarios. All in real time.
3. Assess volume risk in acquisition: Make better decisions by comparing the customer request volume with the "neutral" S&P Global Mobility volume in the Digital Automotive acquisition decision report.
4. Strong argumentation in the claim negotiation: if the customer purchasing department argues for too optimistic volume forecasts, S&P Global Mobility provides the decisive volume information at the right place in the Digital Automotive claim process.
5. Conclusion: Automotive suppliers benefit from the strategic partnership of S&P Global Mobility and Digital Automotive through more transparency, efficiency and effectiveness.
"Suppliers benefit from the strategic partnership of S&P Global Mobility and Digital Automotive."
Erik Reiter
25 years Automotive Supplier-Management (Sales -> CEO); Sales Consultant for Strategy and Processes; Co-Founder Digital Automotive
(1) S&P data as inspiration for target vehicle and target engine selection
Leverage the power of full S&P Global Mobility overviews on potential target vehicles and engines: Digital Automotive is designed to easily identify the ideal target projects.
With filters that are intuitive to use, it is easy to identify cars and engines that should include your own products in the future: With the right customers, in the right regions, the right segment and the appropriate volumes at the ideal SOP time. The result: an operationalized market strategy based on maximum transparency!
Example model cycles: The SOP's of the 2-series and 3-series BMW in the next years at all worldwide locations. The search can be customized in Digital Automotive according to any criteria (OEM, Region, Plant etc.).
(2) Easy project creation in less than 30 seconds
Creating a new strategic project has never been easier. The project creation uses the existing S&P Global Mobility data and automatically pre-fills the necessary input fields. With just a few clicks and practically no data entry, a new strategic project is created with all relevant elements.
A major advantage is that the project name is created in a standardized way. Today, we see unstructured project names at many suppliers, which limit readability and evaluation options. Project name standardization also creates the necessary basis for future AI applications.
Example project creation: Simply select the target vehicle with one click from the cards created in Digital Automotive based on S&P Global Mobility data:
The link to the S&P Global Mobility data enables pre-filling with all basic data from the program code to the delivery location to the SOP data. And the volumes for the sales forecast are of course pre-filled as well. Without manual effort.
(3) Sales forecasts as easy as you need them to be
The S&P Global Mobility volumes are available directly with the project creation for the sales planning. You want to plan with other volumes? No problem, in Digital Automotive there are separate lines for your scenarios or budget planning. The S&P Global Mobility volumes can thus serve as a "single source of truth" or to verify your own/customer assumptions.
Example of volume planning: The S&P Global Mobility volumes are automatically taken over. If you want to display your own plan or budget scenarios, these can also be easily stored.
All you need now are the prices for your products. You decide whether you want to plan "high-level" with a price on average vehicle level or on part number level and with price components defined by you.
Example prices "High-Level" planning: The price entry is simple and with all the comfort you know from Excel. And if you want to plan in detail: In Digital Automotive, this is also possible in an uncomplicated and flexible way.
(4) Automatically update your projects with each volume update
When the S&P Global Mobility data is updated, the S&P volumes of your projects are automatically updated and thus the revenue forecast in Digital Automotive. A gain in efficiency and transparency.
For the special topic "broken link", which is particularly relevant in the engine sector, there are great solution possibilities in which the combined automotive expertise of S&P Global Mobility and Digital Automotive is used.
(5) Sales planning with different scenarios and in all dimensions
Digital Automotive enables the comparison of sales on the basis of different volume scenarios. In this way, the S&P Global Mobility Forecasts can be compared with the company's own planning assumptions. This tool becomes really valuable when all data is continuously updated. This results in real-time planning, in which the most up-to-date sales forecast is available at all times. The last few years in particular have shown the necessity of continuously updated sales forecasts. Only in this way can decisions be made quickly on the basis of transparent data.
In Digital Automotive, sales revenues can not only be displayed at the project level, but can of course be aggregated and visualized in all dimensions. Evaluations according to customers, regions, products and locations are fully automated. Based on S&P Global Mobility data or your own scenario.
Example sales presentations: Easy filtering by any dimensions and scenarios.
The big issue in the relationship between OEMs and automotive suppliers is the volume basis on which calculations are made and prices are agreed. Even before Corona, the semiconductor crisis and the Ukraine war, the volumes specified by the OEM in the RfQ phase only actually materialized in a minority of cases. The few positive (OEM) exceptions confirm the rule.
The impact of volumes on profitability can be easily shown with a simple rule of three: Assuming a contribution margin of 30% (which many suppliers have) and a volume deviation of 20% (which affects the absolute majority of orders), 6% points of margin are lost. For most automotive suppliers, this magnitude already determines profit or loss.
The range of variation and the enormous impact on profitability and cash flow show that it is absolutely necessary to compare the requested volumes with a neutral source. S&P Global Mobility provides the data for this. Digital Automotive brings this information to the right place - the decision document for the acquisition decision - and at the right time - when the offer is signed. This gives decision makers the ability to properly assess the volumes risks before signing. Only this transparency creates a real basis for decision-making.
Example of making volume risk transparent: Easy comparison of the "neutral" S&P Global Mobility data (IHS) with those of the customer inquiry ("contracted") and the company's own planning assumption:
CONCLUSION
A strong Combination for every Automotive Supplier
The strategic partnership between S&P Global Mobility and Digital Automotive is a powerful combination for every automotive supplier. In the different project phases of strategy, acquisition, development and series production, automotive suppliers benefit from end-to-end processes. The deep integration of data in Digital Automotive reduces the manual workload and increases transparency for decision-making.
Those who want to work professionally in the core sales processes, from strategic planning to acquisition to claim management, get exactly what they need to grow profitably: the right information, at the right time, in the right place, in the right presentation.
