Automotive Supplier Cost Analysis | Siemens

By Emilia Maier

Learn how Brose Group uses Siemens technology to improve its strategy for supplier cost analysis. Find out how they realize cost savings up to 15 percent!

One hundred years ago, Henry Ford revolutionized the fledgling automobile industry by integrating the assembly line into the production process. This made production cheaper and more profitable, allowing Ford vehicles to be affordable for almost anyone. It was the birth of standardized mass products.

“You can have it any color, as long as it’s black.” (Henry Ford)

But since then things have changed. The “universal car” would no longer meet the needs of today’s customers, especially for high-value products. In most markets today, there is a recorded increase in the individualization needs of customers. As a result of this trend, companies react with increasing product variety and ever shorter innovation cycles.

Electronically operated side door seats controllable via smartphone, or massage seats vibrating in time with the music. These are all examples of innovation in the automotive sector. Tailgates and side doors can be opened and closed by means of a smartphone, without any physical contact. Car seats are already configured before you get in: An app determined the appropriate settings based on height and weight. Up to 22 adjustments adjust the driver to a safe and comfortable seating position. Individual profiles can be created and retrieved by smartphone or tablet – from the first to the third row of seats. Individualization is a trend that continues to gain momentum in the automotive industry. Our customer Brose sets new standards with these innovations and many other new developments, which make the future of driving safer, more comfortable, and efficient.

To promote such innovations, it is important from a cost perspective to optimally support new approaches in product development as early as possible. Successful companies such as Brose have recognized the importance of procurement for value management and involved procurement as a partner very early in the product development phase. Read how Brose achieves cost savings up to 15 percent for manufactured parts through the analysis of product cost, thereby ensuring competitiveness.

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This article first appeared on the Siemens Digital Industries Software blog at