Clockspeed-capable procurement | KPMG | UK
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Clockspeed-capable procurement

Clockspeed-capable procurement

Five key strategies for managing innovation in the automotive industry.



KPMG in the UK


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Car on road

A rapid pace of change is forcing the auto industry to transform and embrace a new reality. What does this mean for procurement? Our report offers a roadmap, with practical steps to avoid the pitfalls and keep your procurement transformation on the fast track.


Driving innovation forward

Shifting demographics, new consumer demands, and technological breakthroughs are forcing the auto industry to transform rapidly. Meanwhile, competitive pressure is increasing from non-traditional and diverse market entrants.

Automotive companies that embrace the opportunity and evolve – by quickly and effectively partnering with tech players, establishing new supply relationships, and leading the way into the future – will be winners. The ones that fail to evolve will likely fall by the wayside.

What does this mean for procurement? Managing an innovative, disruptive ecosystem of non-traditional vendors comes with distinct challenges.

The new procurement organisation will need to restructure operations, enhance skills and capabilities, and adopt new approaches to work effectively with disruptive innovators.


Accelerating new opportunities

For procurement departments, the push to launch cars that are closer to “computers on wheels” requires new relationships with a wide range of companies.

Automakers may not have the expertise or capital to develop the necessary technological innovation on their own; so they may need to acquire or gain access to it from an ever-expanding ecosystem of potential partners. Procurement has a pivotal role to play taking the lead in this critical new process.


Five strategies for success… and survival

  1. 'Sense the ecosystem'
  2. Develop suppliers early in their life cycles
  3. Learn the disruptive supplier’s technology and business
  4. Spread bets over a portfolio of alternatives
  5. Develop a menu of contract and risk management options

Making these adjustments will be challenging, but with the right game plan, they’re achievable. In fact, there is no alternative; OEMs that fail to heed the message will be left behind.

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