Download a sample of the report here.
Suppliers to the automotive industry find themselves negotiating in a contentious environment with a myriad of challenges:
- Declining production volumes
- Push by buyers to source from low cost countries
- Volatile currency fluctuations
- Historically high raw materials costs
Taken together, these forces conspire to create tremendous pricing pressure and sales challenges for the supplier community.
Yet, even in this challenging environment, some suppliers are more successful than others at resisting customer demands for discounts and cost downs. As a result, even in a declining market, they are able to effectively manage their pricing and profit margins in ways that set them apart. These Pricing Leaders:
- Receive price premiums on the bids they win more than three times as often as other supplier sales organizations.
- Succeed at passing along 25% more of their increases in raw material costs to customers.
- Discount less often than their supplier peers.
To better understand how some suppliers are out-performing their peers in this environment, we undertook a best practices study of over 200 parts, services and raw material suppliers throughout the world.
Specifically, we examined how successful suppliers:
- Structure their sales organization
- Reward and motivate personnel
- Effectively package and present the value of their products, services, and solutions
- Overcome objections and negotiate more effectively
The result of this research is a first-of-its kind study that identifies specific organizational structures, operations, and sales tactics that have a clear and positive impact on suppliers top and bottom-lines. In this report we offer a prescription for the types of changes that suppliers can make to align their sales efforts to industry Best Practices, and thereby improve their business performance.
The results will provide valuable input regarding how to position your company to more effectively negotiate with customers, be they OEMs, Tier 1's, or Tier 2 and 3 suppliers.
REPORT DETAILS
Title: Sales Best Practices in the Global Automotive Supplier Industry
Publication Date: 2009
Number of Charts: 60
Geographic coverage: Europe, APAC, South Africa, South America and North America
