Secteur Automotive Eurogroup Consulting
In a still very unstable global market, the automobile sector is prioritising operational and financial efficacy with a view to improving its margins
While manufacturers have to deal with the key challenge of emergent markets with widely varying dynamics, they must also respond to new trends in mature markets and take into account the changing nature of relations between Western consumers and their vehicles.
The automobile sector faces a major paradox: despite its structural difficulties and the need for exhaustive self-reassessment after more than a century of existence, the sector still has strong potential for growth worldwide.
Globalisation, growing regulatory constraints, urban-development challenges and the impacts of the digitisation of modes of consumption require vehicle and component manufacturers to continue their efforts to combine efficiency, flexibility and innovation.
Continuing the dynamic adaptation of offer to the transformation of relations between consumers and vehicles
New modes of mobility (car-pooling, car-sharing, multi-modularity) are symptomatic of the changes in relationship between consumers and automobiles. Against a background of economic instability and increasing concern over environmental issues, these new behaviours will continue to spread beyond the great metropolises, where they are most obvious today.
Lighter equipment, the development of electric and hybrid vehicles and the acceleration of R&D investment in heat engines are all signs that vehicle and component manufacturers are taking on board environmental issues and new expectations on the part of consumers, who are taking an increasingly responsible approach to travel.
Consequently, the automobile sector must respond to these issues by offering ever more innovative products that reflect these new consumer habits and expectations.
Developing an ‘industrial footprint’ in response to globalisation issues
European manufacturing plants have been affected by a chronic excess of production capacity for more than a decade and must adapt to sales volumes that have shrunk since the 2007 crisis. This need is combined with another: to develop industrial capacities (manufacturing and even R&D) as close as possible to new customers in emergent countries: China, now the world’s biggest market, Latin America, India, Russia, etc., and find a better mix of manufacturing-cost benchmarks for a broader product range (low-cost, low-end, niche and high-end vehicles).
This is leading players in the sector to conduct strategic studies into key localisation and industrial choices on a global level, which will significantly affect their mid-term performance.
Increasing manoeuvrability and flexibility in development and manufacturing
In 2016, half the world’s production should be concentrated on 27 platforms, compared to 31 in 2012. Modularity linked to stronger configuration management is becoming a key issue in reducing design costs, shortening cycle time and making manufacturing costs more flexible and optimised, while meeting increasing consumer demand for vehicle customisation.
These new concepts are compelling organizations to adapt radically in order to change their practices and ensure that all their operational teams apply them appropriately.
Developing an omnichannel customer itinerary and the operational excellence of physical distribution networks
Digitisation of the buying experience has contributed to changes in consumer behaviour. Customers now have access to ever more sophisticated information and meticulously compare offers and share their experiences on the social networks. They are increasingly well-informed and less and less predictable. Consequently, operators in the sector must invest in the Web as a medium to promote their products and win over consumers at source.
Facilitation of customer-relations flow on the Internet, e-reputation management, mass-processing of customer information (big data) and the connected vehicle are all ongoing developments that characterise the potential of digital technology for operators in the sector.
The customer’s digital itinerary is now designed in parallel with the physical point-of-sale itinerary. Today, points of sale must continue their digital transformation and help teams to adopt practices and behaviours that produce a consistent high-quality purchasing experience from start to finish.
As well as improving the customer experience, points of sale must also review their organization with an eye to economic viability. The optimisation of management systems and the development of management and business-steering skills are genuine levers to increase the performance of distribution networks.
L'offre Eurogroup Consulting - Automotive Eurogroup Consulting
- Planning and implementation of strategic plans / programmes.
- Optimisation of processes.
- Optimisation of costs.
- Change support.
- HR / forward planning of employment and skills management.
- Responsive organizations.
- Implementation of a Lean approach.
- Optimisation of the supply chain and logistics.
- Programme portfolio management.
- R&D processes.
- Modularity / configuration management.
- Shorter Time to Market.
- Customer itinerary and experience.
- Customer-relations management.
- Service promises and commitments.
- Service quality / Customer satisfaction / Loyalty enhancement.
Point of sale
- Sales performance.
- Operational excellence.
- General and departmental steering.
- Skills development / Coaching and training.