Embedding Sustainability & Cost Breakdown for Key Suppliers

CHALLENGES

• Automotive OEM lacked visibility on cost and sustainability from top tier-1 suppliers (45).

• Local content and currency volatility added pressure to control costs and achieve compliance.

• No standard methodology and process to collaborate with suppliers.

• Negotiation and interface with suppliers based on price, local content and quality over the past years.

• Developed a standard cost and CO2e breakdown template to be filled in and update by the supplier yearly.

• Setup and run sustainability 2-day workshop with 30 suppliers setting up a collaboration framework and training them on the template.

• Audited top 5 suppliers with on-site visits and deep dive understanding of suppliers’ calculations.

• Moderated completion of templates with suppliers.

• Coached and supported buyers in the discussion with suppliers.

• Understanding of Scope 3 emissions from top suppliers at product level

• Improved visibility on cost, exposure to currency volatility and local content. (80% of cost base)

• Ignited discussion with top tier-1 suppliers on potential cost and CO2e savings by 2030

• Cost and CO2e Tool handed over to client’s Supplier Improvement Programme Manager