3 auto industry trends transforming supplier sales
Foundational shifts in the auto industry mean supplier sales organizations need to be more productive, efficient, and collaborative than ever before to stay ahead of the curve.
Global supply chain complexities, changing OEM expectations, and the rise of electric vehicles are reshaping how automotive suppliers approach sales, particularly in the RFP phase.
An effective RFP process speeds sales, optimizes supply chain operations, and lays the groundwork for enduring customer loyalty. However, the process is often hindered by disjointed systems and data across teams, which results in delays during negotiations and higher sales costs. A lack of visibility into customer, sales, and supply chain data prevents proactive problem-solving and strategic advising.
Given the changing automotive landscape, suppliers must revamp their RFP strategy to align with OEM needs and global supply chain dynamics. With better processes, suppliers can reduce sales costs and capitalize on new opportunities.
Improving the RFP process involves three steps:
- Integrating data and business processes
- Facilitating cross-functional collaboration
- Leveraging automation and technology for efficiency
Integrated processes means better visibility and better decisions
The RFP response team is typically composed of sales, R&D, manufacturing, and Q&A. Each team contributes to delivering a proposal that meets the OEM’s design requirements, delivery timelines, and overall program goals.
To make the best decisions when designing new parts, sourcing materials, and responding to other aspects of the RFP, these teams need access to information about the customer and the supply chain. When this data isn’t readily available, it slows down response times and hinders the team’s ability to make the best decisions for the customer and the business.
When back- and front-office data and business processes are integrated and accessible, the cross-functional team responding to an RFP has access to all the customer, supply chain, and operational data needed to put together a competitive proposal.
This gives each team the visibility to create supply chain efficiency, maximize demand, and meet the customer’s needs. It also can improve forecasting accuracy and set the teams up for success when responding to future RFPs.
Connected workspaces boost collaboration
RFPs issued by OEMs are inherently complex due to the “design to engineer” process in traditional auto supplier sales. Responding to RFPs issued by OEMs is more than answering a standard questionnaire. OEM programs, especially for internal combustion engine vehicles, require custom parts that need to be designed to meet program requirements.
As a result, responding to RFPs requires collaboration across multiple teams to specify the design, identify material to be sourced, and estimate delivery and manufacturing timelines.
To increase efficiency and effectiveness of the teams involved in this work, automotive suppliers should bring them together in a central location. Ideally, that collaboration system provides each stakeholder with access to all the data and insights needed to make the best decisions for the customer and the business.
Working in a single location where every stakeholder has access to customer insights and can communicate in real-time about the RFP boosts efficiency. Teams can work faster, collaborate better, and ultimately craft a stronger proposal, more competitive proposal.
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Get more efficient with automation and AI
OEMs aiming to reduce the cost of manufacturing are putting more pressure on suppliers, who must maintain high quality products while finding ways to cut costs. One way suppliers can do this is by reducing the cost of sales.
Increasing visibility among the RFP response teams and enabling them with collaboration tools is the first step to increasing efficiency. Suppliers should take this one step further by using AI and automation to reduce time spent on manual tasks throughout the RFP and sales processes.
For example, AI-driven customer and engagement summaries allow response and account team members to get up to speed quickly, review key insights at the right time, and take action with next-best recommendations.
As the automotive industry rapidly transforms, suppliers mut adapt quickly. An effective RFP process is the first step to building long-lasting customer relationships and setting the business up for success.
Empowering those responsible for responding to RFPs with the insight they need to make better decisions and giving them collaboration and automation tools to be as efficient as possible will lead to better outcomes for the customer and the business.
