
Unleashing value. A strategic approach to Automotive business
Introduction
In the fiercely competitive world of automotive manufacturing, breaking into established supply chains is a formidable challenge. Yet, our client not only penetrated Chrysler's tightly-knit network but also secured flagship interior projects for their new Pacifica model.
This success story demonstrates the power of a value-driven strategy in transforming industry norms.
Overcoming obstacles with strategic insight
Targeting Chrysler required months of dedicated effort, including workshops, numerous presentations, and providing product samples for engineers to evaluate. Our dual strategy involved:
Pull Strategy at Chrysler HQ: Offering insights into challenges and potential solutions.
Push Strategy to Tier 1 Suppliers: Demonstrating our expertise and reliability as a Tier 2 supplier, aiming to be involved at the project allocation stage without displacing the Tier 1 supplier.
By the time the Tier 1 supplier was awarded the project, we had established a network of engineers and decision-makers at all levels. This allowed to identify key pain points for Chrysler in this project:
Reducing weight
Simplifying assembly
Delivering features that mattered to the end-user
Redefining the value proposition
Our approach focused on three key strategies:
Outcome-centric communication:
Emphasising tangible outcomes such as accelerated return on investment, operational consistency, and integrated performance enhancements.
This resonated with Chrysler's needs for efficiency and simplicity without compromising reliability.Proactive problem identification:
Uncovering hidden inefficiencies within the existing solution, including:
- Over-engineered components that were too heavy
- Misaligned specifications leading to high tooling budgets, and
- Assembly risks due to potential confusion between left- and right-side components.
Each identified issue became an opportunity to demonstrate our problem-solving capabilities and quantifiable value creation.Design-driven solutions:
Prioritising practical improvements such as:
- A 50% reduction in tooling costs through innovative design
- A 30% increase in assembly speed with fast-mounting "poka-yoke" solutions
- Enhanced performance for the end-user with automotive-approved features.
These design innovations translated directly into measurable benefits for Chrysler's bottom line.
Delivering exceptional value
By focusing on value creation at every step, we secured two high-profile programs, displacing long-standing suppliers. Our flawless execution not only met but exceeded expectations, prompting Chrysler to reconsider their procurement strategies.
Your blueprint for a value-driven strategy
In industries dominated by legacy relationships and cost-cutting measures, success comes from offering undeniable value. Our approach didn't just win contracts, it actually reshaped our market positioning in the automotive industry as an expert and reliable Tier 2 supplier, both in the USA and Europe.
Our success with Chrysler exemplifies how a well-executed, value-centric strategy can overcome seemingly insurmountable industry barriers. By aligning our offerings with the client's core needs and demonstrating tangible benefits, we transformed from an outsider to a trusted partner on critical programs.
This case study serves as a blueprint for companies aiming to disrupt established markets. It proves that with the right strategy focused on delivering superior value, even the most entrenched industry norms can be challenged and changed.