Market segments: Automotive Industry

A substantial portion of manufacturers that operate in the Czech Republic are controlled and strategically managed from abroad. Decisions about which parts and for which car manufacturer and the particular make the parts will be produced come mostly from foreign headquarters. It is indeed here where the decisions on volumes and prices for which the work to be performed are made. Therefore, a principal goal is fluent and smooth fulfillment of production plans and tasks assigned by headquarters or a parent company.

It is especially the importance of costs and profitability that is constantly growing. Manufacturers of car parts and accessories are exposed to extreme pressure from consumers calling for continuously lowering costs and thus also prices, while also demanding top quality and competitive lead times. To this you have to add controlling of production capacities (plans and forecasts of loading of production capacities and needs of working personnel), assessment of efficiency of product lines, management of their start-up and retirement, management of change project, cost-saving projects, better management of budgets of centers, monitoring of key operational and procedural indicators with the link to quality management… A key trait of auto parts production is the openness of calculation of orders to customers. The goal of controlling is to make the costs of individual divisions and processes and thereby the entire orders more transparent vis-à-vis customers and to defend the price.

It is also necessary to allow for high series or mass production which is focused on a narrow and substantially specialized portfolio of parts. These are, moreover, distributed to a limited group of customers via relatively simple distribution channels (direct supplies or distribution through headquarters; special category of these supplies is represented by supplies to after-market – service parts warehouse). All the above-mentioned facts represent branch specifics which to a considerable degree determine the data and process model of the industry.

A branch solution for the automotive industry is suitable also for the furniture and electronics industries.