Global Emerging-Market Sourcing

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Seizing the Opportunity

Thought Leadership

Read moreGlobal Emerging-Market Sourcing: Seizing the Opportunity

Forward-thinking automotive companies are reducing costs through global sourcing

Forward-thinking automotive companies are reducing their costs through global sourcing,  but success requires different skills and a different mindset.

Continued growth and increased profits brought about by reducing costs are not the only benefits of global sourcing. Emerging-market sourcing can also reset the baseline and help drive step changes in performance with incumbent suppliers. And there is often an intrinsic link between buying and selling opportunities in emerging markets. 

In one example, Capgemini worked with a Tier 1 automotive supplier to develop a global emerging-market sourcing program. A cross-functional, globally located team was established and end-to-end sourcing activity was completed in 16 weeks, resulting in a 21% delivered savings opportunity.

Capgemini’s Approach to Low-Cost Sourcing

Capgemini’s portfolio of skills, supporting methodologies and global delivery capabilities makes it possible for us to help automotive companies address a range of global sourcing issues.

Sourcing strategically: Capgemini’s automotive practice serves 14 of the world’s 15 largest vehicle manufacturers and 10 of the 12 largest automotive suppliers.

Reaching globally: Our global footprint is backed up by robust leading-edge tools and methodologies specifically related to global sourcing such as spend segmentation and commodity profiling.

Capturing value: Our global expertise makes us well-placed to help companies select the right low-cost countries to consider for sourcing. Critical to this process is our understanding of current and future macroeconomic factors, such as a country’s GDP, trade balance, corporation tax, VAT, capital gains, dividends, etc.

Mitigating risk: Capgemini can help companies devise the most appropriate and effective risk-mitigation strategy so they can successfully and confidently implement a forward-looking low-cost sourcing (LCS) strategy.

Accelerating strategies: Capgemini has successfully helped automotive companies speed the development of their LCS strategies using our “Jump Start” approach, which involves a six-week health check to accelerate the completion of an LCS strategy.

Contact Us

If you have specific business needs or objectives that you would like to discuss, or if you’d like an automotive specialist to get in touch with you, contact us.