1、Future-proof automotive suppliersREPORTThree imperatives for organizational success The automotive supplier industry faces significant challenges characterized by rising costs,rapid technological disruption,and fierce global competition.European suppliers,in particular,are experiencing structural in
2、efficiencies,with EBIT margins down by three percentage points.Stagnating productivity and outdated organizational structures are further undermining competitiveness,while geopolitical tensions are complicating supply chains.To navigate this complex landscape,suppliers must urgently transform their
3、operating models.We make recommendations focused on three interconnected imperatives,which should be addressed holistically:Achieve cost competitivenessSuppliers need to eliminate inefficiencies,particularly in overhead functions,by adopting a zero-based approach to streamline operations and standar
4、dize processes.Leveraging AI and automation in corporate functions,combined with fostering a performance-driven culture through targeted incentives,is essential for maintaining cost competitiveness.Uplift organizational speed and innovationSimplifying organizational structures and empowering frontli
5、ne teams to make decisions enhances agility and responsiveness to market demands.Focusing hiring on engineering,software,and AI capabilities,as well as developing future-ready skills,further drive innovation and responsiveness.Strengthen organizational resilience and flexibility Breaking down silos
6、and building cross-functional platforms for collaboration,integrating resilience into governance with shared KPIs and dashboards,and investing in change management are critical steps to enhance organizational resilience and support effective transformation.Cover:Westend61/Getty imagesManagement summ