Why most automotive suppliers waste time and money with their "spray & pray" strategy...
...and how you can finally generate a lasting competitive advantage by not being one of "them".
A message from Gereon Hempel
Procurement Consultant in the Automotive Industry
Dear Reader,
The automotive industry is in turmoil and suppliers and OEM's alike are suffering, we are in a crisis. Hence, you might be all too familiar with the following challenges:
- You are wasting resources, time and money pursuing the wrong opportunities.
- You pursue clients for months, sometimes years, but never get invited to strategically important bid processes that would turn your business around. Nothing really seems to work.
- You change your communication strategy every now and then, but important clients still ignore you.
- You are losing market share to your competitors.
- Your margins are shrinking as you are getting squeezed in negotiations.
- You have no idea how OEM's and Tier 1 suppliers take decisions which makes predicting income streams impossible.
- You are doubting yourself and the future of your business.
Don't worry, you're not alone.
Why even the greatest offer and a well trained sales team are simply not enough...
Many automotive suppliers think that the client cares about their offer and that their stellar sales team can bring the deal home, they just need to be patient.
They focus on refining their product, making it a better fit for the customer and showcasing it.
At the same time their sales team seemingly does all the right things, but still... strategic awards are obtained by others.
Most automotive supplier have wasted time, effort and millions in lost revenue which leaves them frustrated and at the brink of giving up.
They underestimate the fact that "good" is no longer enough.
The truth is: If you don't understand procurement, all other strategies are worthless.
Every sales interaction you have with an OEM before being awarded business involved one department: Procurement! Procurement is the first and the last step before being awarded any piece of business. Sure, the Head of Supply Chain is important, but procurement spends the money!
Hence, ignoring procurement is the most expensive mistake you can make.
It doesn't matter if we're talking about BMW, Volkswagen, Honda or Tesla - the times of bypassing procurement and getting a quick CEO approval of a $50M award are long gone.
If you don't understand procurement, you won't be able to compete with any of the established suppliers that still profit from legacy contracts.
Just think about it:
Established suppliers are pretty comfortable in their seats because no one understands their clients as well as they do.
Again, it doesn't matter how good your product is...
If you don't learn procurement and speak the language of your client, you will never be able to compete.
And even if you make it in, you will most likely get squeezed in negotiations or expose yourself to unreasonable contract risks.
This is also the #1 reason why automotive suppliers learn procurement... or grow more and more frustrated until they finally give up.
Make no mistake: ONLY profound procurement knowledge leads to healthy margins and contract awards that let your business thrive!
Once you understand procurement, it will be so much easier for you to gain automotive clients, no matter if you are an indirect or direct supplier!
But to be successful, my company, 21. Consulting, can help you change the following things in your business:
- We need to analyze what you are currently doing and why it's not working.
- Then we need to monitor and improve your client communication so that you speak the language of the client - from first contact to contract close.
- We need to create process understanding so that you will never again be surprised by a "final final' negotiation round or scramble for resources to meet an out-of-the-blue deadline.
- And finally, we need to work on your negotiation skills, so that you can maintain healthy and sustainable margins.
My a decade long experience working in procurement has let me witness hundreds of supplier presentations, negotiations and acquisition strategies. Many of which failed and few of which worked. Now I'm passing that knowledge on to you.
Book a free consultation using the button below.
During this 60-minute initial consultation, we will work together to determine how we can implement these ideas in your business to help you be successful in the automotive industry!
I have also provided additional materials and case studies on this page to show you how I work and the results I have already achieved for others like you in the past!
I wish you great success and hope to speak with you soon!
- Gereon Hempel -
Additional Information
