Industry Challenges

More than any other industry, the automotive industry vertical is undergoing seismic changes that are profoundly affecting the way manufacturers think about mobility and the products they design to meet consumer demand. Some of the key challenges in the journey to profitability include:

Transparency in the Purchasing Process

Most buyers in automotive OEMs or Tier suppliers are responsible for thousands of components within their commodity group, and have no tools available to understand (a) what is the most efficient approach to manufacturing a part, and (b) what is a reasonable should cost for the part. This makes negotiation with suppliers obscure and often contentious.

Profitability During Re-designs

As government regulations push automotive manufacturers towards ACES vehicle technologies (Automated, Connected, Electric, and Shared), major platform redesigns will be required, and the need for lightweighting will be one of the primary focuses.

Getting NPI Designs to Market Quickly

NPI Design to Delivery Cycles are continuing to be compressed – accelerating new product innovations to market is a key pressure point for all design teams. Many automotive teams are striving to go from 4 years to 2 years – a 50% reduction.

Slow Response Time on RFQs

Slow response time on RFQs and inconsistency across individual cost estimators creates significant problems for Customers; most notably, it impedes any effort to accelerate design to delivery schedules. Quotes are also vague, lacking detailed manufacturing process information.

Not Sure How PCM Could Impact Your Business?

See how aPriori’s Product Cost Management platform can take your automotive business to the next level. Request a personalized demo to see the solution tailored for your use case.

How Apriori Can Help

Product Cost Management solutions enable original equipment manufacturers and their supply chain partners to better understand and meet target costs for increasingly complex systems, components, and tooling, whether they are designed and manufactured in-house or by Tier 1 and Tier 2 supply chain partners.

Create Transparency in the Purchasing Process

aPriori Should Cost Negotiation solutions provide a comprehensive description of each and every step of the most efficient manufacturing process for a given part. Data provided includes: material cost, material utilization, labor cost, fixture cost, machine cycle time, secondary processing costs, tooling costs, assembly costs and much more.

Manage Profitability During Redesigns

aPriori’s Product Cost Management platform lets you make changes to your CAD model and quickly understand the cost impacts of those decisions in real time. With detailed cost estimates of individual components, complex subassemblies, and functional groups, your product teams gain invaluable cost visibility from each stage in the lifecycle.

Accelerate NPI Designs to Market Faster

aPriori Automated Costing eliminates the need to wait days or weeks for purchasing or a supplier to evaluate and create a quote for a new component or system design. Identification of cost drivers early in the design phase effectively eliminates the need to run cost down exercises before release to manufacturing, and this helps accelerate new product innovations to market.

Overcome Slow Response Times on RFQs

aPriori Automated Quoting solutions enable a supplier to build a virtual production environment (VPE) that mimics all the capabilities and cost structure of their manufacturing plant. Once modeled, cost estimating teams are able to respond faster and with significantly more detail than if using traditional costing approaches.

aPriori Customers

PCM Demo: Product Cost Management for the Automotive Industry

aPriori’s patented product cost management technology platform enables all members of the product team to receive instant feedback on the cost of feature/value tradeoffs. Watch this video to see how visibility to cost can help you identify and eliminate cost drivers early in design.

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Featured Resources

Automotive Overview & Costing Capabilities
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aPriori Accelerates Automotive Manufacturing Profits
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How to Maximize the Benefits of Global Vehicle Platforms
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