Mitigate Supply Risk
The automotive industry is undergoing a tremendous shift with major investments in EV and AI. OEMs challenge suppliers to meet aggressive cost reduction targets and have stocked inventory readily available. For automotive parts manufacturers, this puts tremendous stress on profitability and cash flow.
A Unique Strategic Approach
An effective strategic sourcing program, augmented with sourcing applications, typically generates 10% to 20% savings against a company’s external spend, increases cash flow, improves supplier performance, and reduces risk, making it an incredibly powerful value creation program. By leveraging K2 Sourcing as a team member, category and strategic sourcing managers can immediately have a larger impact on direct and indirect spend including transportation and services.
Immediate Access to Top-Notch Talent and Resources
For automotive parts manufacturers, direct materials typically have the largest single impact on profitability. Partnering with top high-performing suppliers dictates your company’s ability to compete in the marketplace and satisfy customers.
Over 50 Spend Management and Strategic Sourcing Services/Tactics
MRO, maintenance repair and operation, and tail end spend are expensed items that are many times not managed by procurement. This lends a fantastic opportunity for savings, sku rationalization, supplier consolidation, reduction of maverick buying, and improved service through offerings like VMI.
Reduce Operating Costs
Indirect spend for automotive parts manufacturers include goods and services under the operations umbrella as well as sales and general administration. Frequently, these categories are not managed by strategic sourcing professionals which offers an immense potential for savings.
An Integrated Human and Technology Strategic Sourcing Solution
K2 Sourcing offers a unique integrated human and technology strategic sourcing solution that provides unparalleled value when working with manufacturing category managers.
This experience qualifies K2 Sourcing to provide:
Lists of global suppliers across direct, MRO, and indirect categories
Hundreds of RFP templates that capture total cost and service variables
Stakeholder interview checklists ensure the right information is gathered
A successful repeatable transparent RFP process
Specialized commodity teams comprised of advisors, project managers, and analysts
An RFP application, that makes the strategic sourcing process easier and more effective
A measurable process that clearly proves outcomes
By leveraging K2 Sourcing as a team member, automotive parts manufacturers expand their resources and:
Increase innovation
Mitigate supply risk using the right award strategies
Understand supplier ESG, including scope 3, accomplishments
Improve savings generated by 5% to 25%
Fill the procurement team resource and experience gaps
Accelerate generation and realization of savings
Find the suppliers that can best support your business objectives
Provide global sourcing access with local support in 14 countries
Benchmark with your peers
Promote a cost-conscious and value driven culture
Reduce operating costs
Introduce the company to huge pools of potential suppliers
Utilize best practices such as eprocurement and esourcing
Reduce pesky time-consuming introductory sales calls
Increase team morale
Access market intelligence
Shrink RFP review cycles by as much as 50%
Launch new products faster
Allow leaders to react rapidly to changing resource needs
Let your team leverage K2 Sourcing’s Experience
K2 Sourcing has helped numerous automotive parts manufacturers improve savings, cash, and performance. Our strategic sourcing teams have helped review billions of dollars across several hundred categories resulting in cost savings of over $600 million.
Some of these categories include:
Direct materials
Metals, resins, chemicals, packaging, plastics, electronics, semiconductors, fasteners, motors, controls, textiles, rubber products, lumbar, glass products, castings, stampings, subassemblies, coatings, heat treating, other outside processes, and more.
Indirect and MRO
Hardware, corrugated, void fill, packaging supplies, general industrial, electrical components, janitorial and cleaning, safety and personal protective equipment, material handling, pipe valves and fittings, welding supplies and gases, racking, robotics, tooling, other capital expense, and more.
Transportation
Full truckload, less than truckload, ocean full container, ocean less than container load, airfreight, parcel, intermodal, rail, 3PL fulfillment, reverse logistics, pool distribution, final mile, and dedicated.
Indirect SG&A
Contingent labor, IT hardware, office supplies, IT consumables, IT applications, consulting services, promotional items, furniture, auditing and financial, legal services, promotional items, tradeshow, print, video production, and more.
Why K2 Sourcing?
An Integrated Human and Technology Strategic Sourcing Solution
Hiring additional team members across so many categories and getting them up to speed is expensive, time consuming, laden with risk, and takes months. There are other agencies that provide procurement consulting solutions. K2 Sourcing offers an integrated human and technology strategic sourcing solution that provides an unparalleled value to procurement leaders and teams.
30-Day Cancellation Clause
With a 30-day cancellation clause, there is minimal risk to access the accumulated experience from K2 Sourcing team members having run several thousand strategic sourcing engagements.
Immediate Access to Top-Notch Talent and Resources
Be it localization versus global sourcing, supplier diversification versus sole sourcing, insourcing versus outsourcing, utilizing K2 Sourcing as a partner provides immediate access to top-notch talent, resources in 14 countries, our award-winning RFP and reverse auction technology and templates, global supplier lists, and world class strategic sourcing processes.
Reaching Procurement Goals Made Easy
As procurement teams are challenged to produce greater value and fight inflation, make it easier for the team to reach your procurement goals. Schedule an introductory call with K2 Sourcing today.
Have a question about our sourcing services or application? Give us a call or fill out the form and we’ll be in touch shortly.
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+1 (877) 824-9809