12
Strategic imperative: Defy cost pressure by
optimizing your manufacturing footprint
OUR APPROACH
EXAMPLE: SUSTAINABLY LOWER COGS WITH FOOTPRINT CONSOLIDATION/SHIFT
Apply detailed scenario planning
to set up a target operating model
by analyzing different scenarios,
including variations in timing, site
shifts, and implementation models
100%
SITE SCENARIO PLANNING (CASE EXAMPLE)
Simulate communication strategies
with OEMs, including handling of
production part approval
processes, aid payments and
long-term commitments by
using goetzpartners’ “intelligent
wargaming” based on noncooperative
game theory
Implement operational excellence
through pragmatic roll-out
planning and KPI tracking
(considering random failures),
as well as goetzpartners advisory
with respect to local specifics and
regulations
82%
11%
7%
COGS
SG&A
(incl. R&D)
EBIT
Typical average
P&L structure of
automotive supplier
CHANGE IN
PRODUCTION
FOOTPRINT
SPECIFIC
CHALLENGES
FOR
AUTOMOTIVE
SUPPLIERS
Toolshop Automotive radar Manual labor intensive production
Transfer of dash
board production
Relocation of cable
harness production
Existing obligations to OEMs (e.g. OEM approval)
Hidden costs in target regions (e.g. EE, Asia)
Negative impact on running organization
Complex integration in existing IT landscape
• Shift of belt
guide production
• Integrate tool
manufacturing
Source: goetzpartners analysis