Solutions to Address Automotive Industry Challenges
We focus on delivering solutions to six core procurement challenges facing automotive & equipment industry providers.
Hover over each image to find out how our solutions address each challenge.
Supplier cost challenges
If your experiencing margin contraction or declining profits, uncontrolled supplier costs could be the cause. Spend Solutions addresses these challenges through a suite of cost optimisation services, from contract reviews & strategic sourcing through to a full cost reduction program. Our cost optimisation projects follow a solution-led philosophy that assesses all factors that impact long term performance such as strategic fit, supply risk, commercial terms & supplier capability, not just identifying who is the cheapest. Combined with our deep commercial expertise, the result is greater savings that stick while elevating supplier performance & reducing supply risk.
Supplier issues
Supplier issues such as poor operational performance, contract disputes or restrictive terms, lack of perceived value, etc can be a drain on organisational resources & performance. Spend Solutions can transform suppliers from a liability to a valued asset through either a contract review or a strategic sourcing review, depending on your goals & timeline. We work with you to understand your requirements, develop a bespoke solution & then establish performance measurement & monitoring to ensure supplier performance that meets organisational requirements.
Limited visibility or controls
For organisations with complex operations, multiple data sources or limited internal controls, understanding where to start & what opportunities exist are often the biggest challenges. Spend Solutions can assess your current environment, identify potential improvement opportunities & develop a roadmap to maximise value creation & achieve organisational objectives.
Internal constraints
Where organisations have variable or elevated demand, financial constraints or require specialised expertise, accessing specialist procurement support can be a viable solution to meet organisational requirements. Spend Solutions can provide a procurement solution across services such as strategic sourcing, contract management & managed procurement that supports your organisation on project specific, short term or ongoing basis.
Ineffective internal systems
If internal procurement systems & processes are a roadblock to meeting organisational requirements, Spend Solutions can review, identify, develop & deliver procurement systems & processes such as procure to pay, contract management frameworks, go-to-market frameworks e-procurement & purchasing card that provide the level of visibility & control to deliver on organisational objectives.
Outdated strategy
If your procurement strategy either doesn’t exist or is no longer fit for purpose, Spend Solutions can conduct a procurement strategy review to identify the best operating model, systems & processes to achieve organisational objectives, including a comprehensive transition plan.
Why Spend Solutions
Spend Solutions are leaders in helping automotive companies obtain greater value from their supplier base, with over 25 years
of automotive procurement experience across relevant categories & environments, including complex & multi-site
organisations. Our bespoke solutions ensure alignment with organisational requirements, delivered by procurement
experts to maximise value creation, under flexible service options that generate value for money outcomes.
Deep Industry Experience
25+ years of procurement experience across automotive organisations & spend categories.
Complex & Multi-Site Specialists
Broad experience working across complex & multi-site groups of 200+ sites.
Superior Commercial Outcomes
Bespoke solutions delivered by negotiation experts maximises savings & commercial terms.
Supplier Independent & Agnostic
Delivering the best outcomes for clients while treating suppliers fairly & with respect.
Automotive Industry Experts
Perfect for established organisations operating in complex or multi-site environments seeking to drive value from their supplier base, across industry segments such as-
Expertise in auto-specific & general spend categories such as
Its good to be loved
Automotive Procurement Case Studies
As Australia's leading automotive procurement experts, Spend Solutions has delivered hundreds of procurement
projects to Australian automotive organisations. Check out a sample of some of our case studies within the
automotive industry demonstrating how Spend Solutions helped automotive organisations obtain greater value from their supplier base.
Supplier Savings Analysis
Spend opportunity assessment delivers $2m supplier cost reduction opportunity to automotive dealership group
Lubricants Strategic Sourcing Review
Strategic sourcing solution delivers 21% supplier cost savings to automotive dealership group.
Waste Services Contract Review
Contract management solution delivers 14% supplier cost reduction to automotive group.
Contract Management Framework
Contract management solution simplifies contract management for automotive dealership group.
Solar Strategic Sourcing Review
Strategic sourcing review of solar delivers $237k to automotive dealership group
How Automotive Procurement helps Organisations
Automotive procurement encompasses the strategic & commercial management of suppliers across automotive-specific & indirect spend categories. Automotive-specific spend categories capture all products that are applied directly onto the vehicles such as tyres, batteries, aftercare & lubricants. Indirect spend
categories include all other opex spend categories used across most industries such as corporate, facilities, marketing & ICT.
Having a proactive, formalised management of suppliers is essential for all organisations, however particularly in the automotive industry where there are typically multiple sites with individual management teams that are trying to manage a large range of products while responding to customer requirements within expected leadtimes. Within this context, procurement activity can have not only a cost reduction impact but also the ability to minimise & avoid supply risks that can have significant business impacts.
The role of procurement within automotive & equipment providers is therefore to manage these risks & opportunities to ensure they align with business objectives & priorities. Having a clear cost savings roadmap, robust sourcing strategies for key spend categories plus ongoing contract & performance management are the primary activities to achieve these objectives & demonstrate value creation.
Where internal procurement either doesn’t exist, is under resourced or lacks specific capabilities, procurement specialists with automotive or equipment industry experience are the perfect resource that allows organisations to obtain greater value from their supplier base without the need for additional headcount or expensive systems.
Ready to obtain greater value from your supplier base?
Contact us to discuss how Spend Solutions’ bespoke procurement solutions can help your organisation obtain greater value from your supplier base.
