How Valeo Kapec, Korean automotive supplier establishes product cost standards across the organization, streamlines costing criteria and improves cost management efficiency.
In today’s business climate, companies require higher cost management to drive profitability. Valeo Kapec produces torque converters, which are a significant part of an automobile’s automatic transmission. The company targeted to enhance competitiveness and cost efficiency by having a standardized cost management approach in place. However, Valeo Kapec was lacking cost management experience and did not have relevant systems in place to achieve their goals.
In the past, the company’s sales, cost, and procurement divisions had separate cost management systems, leading to difficulties in managing costs across the organization. This resulted in the absence of accurate and reliable product costs. To address this issue, Valeo Kapec looked for an enterprise-wide solution to drive work efficiency and better manage cost-related data.