Automotive

Drive lean, profitable growth in the automotive industry.

The automotive industry is undergoing a structural transformation affecting original equipment manufacturers (OEMs) and suppliers alike. Auto companies and their suppliers must simultaneously manage through portfolio churn and uncertainty, while needing to fund the investments in technology for long term sustainability in the face of aggressive competitors from emerging countries. OEMs can no longer afford slow, sequential product and supply chain planning processes. Suppliers are squeezed financially and need support to ramp up new technology processes and sustain supply continuity.

Jonova’s integrated product portfolio management, financial performance management, and capacity planning support will play a vital role in driving the change process. Jonova provides world class scenario modeling and business planning solutions to test ideas for unmatched understanding of the physical and financial dynamics to help management plan fast and execute reliably.

Industry Challenges:

  • Supply chain complexities compounded by demand mix and supplier shifts to places such as China and India
  • Increasing competition for the same raw materials, suppliers and industry expertise
  • Financial market volatility relative to taxes, tariffs and currency conversion
  • Expensive market “misses”
  • Highly competitive pricing environment with intensified downward pressure on already sparse margins
  • Lack of understanding of product line profitability

Jonova Solutions for Automotive

The Jonova solution brings visibility to the financial and physical values of the risks and rewards of this business. Jonova software enables you to evaluate the cost of lost sales and  increased costs from reactive (rather than proactive) demand planning that is often present when servicing niche markets. Jonova will provide value sourcing options and creative product launch and capacity build-up strategies as alternatives. Jonova solutions support lean manufacturing initiatives, reduce costs, and drive excess costs out of the supply chain. With Jonova, you can survive aggressive cost cuts and supply chain complexity, yet thrive by meeting consumer demand for customization and variety.

  • Corporate Strategy and Performance Management
      • Boost the financial visibility of the tradeoffs between market share capture and the cost/risk of poorly timed releases
      • Understand product line profitability with changes to model mix, volume and footprint based on direct and allocated overhead cost behavior
      • Develop forward looking revenue and cash flow plans with associated contingency plans
      • Understand total landed cost and how footprint and legal entity structure affects effective tax rates
  • Sales and Operations Planning (S&OP)
      • Pursue growth opportunities in new markets by evaluating multiple scenarios including transition costs and optimized investment timing
      • Vacate or adjust technology investment strategies as early in the process as possible to avoid negative inventory and market impacts
      • Make risk adjusted capacity and tooling investments decisions
      • Use driver based budgeting with the latest information, including project variances given volume and mix shifts
  • Portfolio Optimization and Product Performance Management
      • Monitor projected product line profitability over the lifecycle from bid and quote through EOL based on latest commodity prices and pricing negotiations
      • Deliver high integrity RFP responses integrated with investment and capacity plans
      • Consider all potential product flows including duty, tax and transportation impacts of footprint decisions, enabling balance sheet and P&L trade offs
      • Enable a portfolio management process that values opportunity costs in order to determine the investment timing and design choices required to maximize financial performance
      • Place informed technology bets before business is awarded recognizing that design choices made in the early stages of development impact the financial flows for the entire product lifecycle
  • Supply Chain Management
      • Quantify operational choices and deliver financial results over any time horizon to manage risk and actively plan supply chain flexibility
      • Understand the capacity constraints of your suppliers to ensure their ability to deliver on global platforms over long periods of time
      • Forecast supplier health, anticipate disruptions and create supplier risk management plans
      • Plan an asset footprint that will result in the lowest cost-to-serve over multiple potential volume and mix scenarios over long term time horizons
      • Plan transition costs in time phased projects to understand the investment and cash impact
      • Include duty and freight as well as tax impact analysis in your capacity planning
  • Sustainability
    • Avoid penalties or denied market access by meeting mandatory compliance on CO2 emissions by 2012.
    • Evaluate strategies and risks relative to the development of ULEV or Zero-Emission vehicles considering make/buy decisions for compliant vehicles
    • Understand how optimizing sales of existing low emission cars and sell off non-compliant assets will impact overall profitability
    • Forecast product lifecycle CO2 emissions at the model level