Industry knowledge and a pragmatic work style underpin all the services offered by Arthur D. Little's Automotive practice.
The automotive industry is facing historical challenges. Changing customer requirements in the triad markets and even in the emerging markets, leaps in technologies, especially in the area of new drivetrain concepts, entrance of new competitors from the emerging markets and from outside of the automotive industry - these are all significantly changing the structure of the industry. Additionally, emissions standards are continuously being tightened and the regulations in the megacities have a sustained impact on demand, margin structures and value chains in the automotive industry. Today's automotive market will develop into a mobility market. The existing models need to adapt and new ones will evolve. The market players will also need to significantly change and new players will enter.
As a result, a changed industry structure can be expected, meaning existing, as well as new entrants, will have to adapt to the new framework to achieve sustainable success. Arthur D. Little supports its clients in identifying and selecting the optimal business solution.
The continuously developing digital sales channel is no revolution but rather an evolution based on customer requirements. Multi-channel sales models enable our clients to tap into the full potential of this channel to ensure a seamless transition between online and offline channels. Arthur D. Little supports the conception of holistic multi-channel sales strategies considering the processes, organizational structures, IT-landscapes as well as the profitability on all sales levels.
E-mobility is the current buzzword. The required investment in technology and infrastructure is predicted to exceed several billion Euros, with the amount being a burden for the automotive manufacturers as well as the utility companies and public investors. However, major questions are still not answer
Arthur D. Little has analyzed the e-mobility value chain and has identified valuable business model options which will support companies in being economically sustainable.
Climate change, environmental requirements and a shift in customer behavior have all increased their impact on the automotive industry framework. Nevertheless, long-term and successful strategies can be developed.
For Arthur D. Little sustainability has been a traditional focus. For more than twenty years we have supported leading industry clients throughout all sectors in developing and implementing successful sustainability strategies. We do not only focus on innovative technological solutions but also pursue a holistic approach which challenges all relevant factors along the value chain in order to identify optimal solutions.
In today's globalized world corporations still struggle with mastering the trade-off between localization to match local customer requirements and standardization to realize economics of scale. We have proven expertise in enabling multi-national corporations to define and implement the optimal approach that fits their specific situation for success in global markets.
A robust segmentation model enables the development of a product portfolio that meets customer requirements and expectations and is crucial for success in the global automotive industry. However, real benefits come only when they are supported by a modularization and platform roadmap. We help our clients with an approach covering the complete value chain from market segmentation, requirement analysis to technical module definition; delivering clear strategic guidelines, optimized product portfolio and reduced product complexity.
Relentless improvement of development efficiency is getting more and more important due to significantly growing cost pressure. R&D Efficiency Management holistically addresses all potential improvement levers - doing the right things and doing the things right in a global context. In recent years we helped automotive OEMs, automotive suppliers as well as high tech manufacturers increasing their R&D efficiency to improve their competitive situation.
Today, 70% of PLM investments do not deliver expected value. For many companies within the automotive industry, the issue of how to improve the data integration across the value chain from Product Definition, Development to Production and to After Sales is still unsolved. This issue is compounded by lack of knowledge of how to improve the link from the client's requirements to digital verification and to the physical mock-up. We help to bring the "enter once - use many" principle to life and implement state of the art PLM processes and systems, focusing on business processes and on the need for change management, we help clients to successfully leverage their PLM investments.
In the automotive industry, innovation is one of the key levers for sustainable competitive advantage - but innovation is also a driver for additional complexity and costs. To be a Smart Innovator corporations must focus on the innovations that customers really value and must align all touchpoints with the customer according to brand positioning and customer expectations. We help our clients to align with customer value and re-focus on products, features, services and interactions customers are willing to pay for.
Sales and marketing processes are key drivers for revenue, but are also responsible for about 30% of costs for every new car sold. We help our clients to save costs by streamlining sales/marketing/CRM processes and organizations on OEM, wholesale and retail level. Due to the current decrease of new car sales we have developed a methodology 'Dealer Risk Assessment' to timely and systematically identify and quantify dealer risks. Based on this analysis we offer measures to help secure the future of strategically important dealers (Retail profitability Optimization).
After Sales Excellence is a key driver for customer satisfaction and loyalty but also a very important source of revenues and profits throughout a vehicle lifecycle. Our after sales experts support our clients in all relevant areas of after sales service to improve the internal cost base, the retail attractiveness as well as customer satisfaction. Our results are measurable - significant improvements on key indicators such as warranty costs, service quality, and fixed first visit rate.
Our Supply Chain Excellence service enables you to realize substantial improvements in your supply chain performance in terms of cost, efficiency, lead times, demand management, customer service and working capital requirements. We measure, improve and qualify supply chain organizations and processes and support our clients by identifying and rapidly implementing cost and efficiency savings in the entire supply chain.This can be achieved with the comprehensive, cross-functional redesign of all logistics processes leveraging the entire supply chain including customers and suppliers. With our proven Integrated Supply Chain Excellence Audit we quickly identify gaps to proven best practices and benchmarks within, and beyond, the Automotive Industry.
Constantly reviewing the companies value chain in a rapidly evolving environment; deriving required core competencies and partnerships is a key management responsibility. We help our clients design their value chain in terms of a global engineering footprint, production and service network, thereby improving efficiency and customer satisfaction in alignment with corporate strategy.