Value Chain Management

Value Chain Management

Having a solid and efficient procurement strategy is vital to any successful business in the automotive and transportation industry. Typically, a modern vehicle may contain upwards of 30,000 individual components, sourced from hundreds of separate suppliers spread across the globe. From small components to complicated devices, many elements are sourced from third-party manufacturers, and when there are problems with products or material at any portion of the supply chain, the impact on value chain participants can be catastrophic. The ability to manage this complexity effectively is a key capability for any manufacturer in the automotive or transportation industry, and it typically requires large, high-skilled teams. However, as market forces drive consolidation throughout the value chain, increasing supplier power is disrupting traditional relationships between original equipment manufacturers (OEMs) and their supply base. Furthermore, the combination of increased competition, rapid technology adoption, and stagnation of traditional markets requires new, flexible approaches to product manufacturing, such as localized supply chains producing common global platforms.

Manufacturers that can react quickly and effectively to these new realities are those that will prosper in the next era of the automotive and transportation industry. At Ricardo Strategic Consulting (RSC), we provide a range of service to assist clients in this area, from development of global procurement strategies and risk management to sourcing execution and optimization. Our team can help your organization communicate value to customers in a loud marketplace with improved sales and marketing. Finally, we can help your company stay competitive and unlock cash for investment through our profit and cash flow improvement strategies or reduce costs exclusively through program management and total value management (TVM).

At RSC, we understand the challenges associated with the management of complex value chains in the industry. RSC works closely with your team to manage everything from fluctuating prices and volatility in markets to changing technologies and increasing globalization. We offer end-to-end services that can address any aspect of value chain management. By combining our strong technical pedigree with industry-leading business acumen, we can craft a tailored and implementable value chain strategy that will give our clients that competitive edge.

Disruption in the value chain can be catastrophic. At RSC, we work to provide our clients peace of mind.

Related Case Studies

Specific cost reduction initiatives were developed (~8% of cost), with cost reduction and complexity management methodologies defined to improve client capabilities

Specific cost reduction initiatives were developed (~8% of cost), with cost reduction and complexity management methodologies defined to improve client capabilities

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Cost Reduction Through Market Test & Design Concept Development

Cost Reduction Through Market Test & Design Concept Development

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Identified options and acted as a confidential conduit to screen potential partners in support of an OEM growth strategy

Identified options and acted as a confidential conduit to screen potential partners in support of an OEM growth strategy

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Validated client’s cost reduction strategy to reduce $40K from BOM and provided actionable steps to achieve savings

Validated client’s cost reduction strategy to reduce $40K from BOM and provided actionable steps to achieve savings

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Identified component cost reduction, sourcing opportunities, logistics and manufacturing footprint improvements

Identified component cost reduction, sourcing opportunities, logistics and manufacturing footprint improvements

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Conducted a 1st phase safety and environmental risk assessment related to LNG as a fuel for railroad applications

Conducted a 1st phase safety and environmental risk assessment related to LNG as a fuel for railroad applications

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Designed a diesel engine concept for India & developed an integrated design-sourcing strategy for engine cost reduction

Designed a diesel engine concept for India & developed an integrated design-sourcing strategy for engine cost reduction

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Secured new Li-ion traction battery source for commercial vehicle manufacturer and reduced cost 40%

Secured new Li-ion traction battery source for commercial vehicle manufacturer and reduced cost 40%

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