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Auto Procurement Strategy for Cost, Quality & Resilience

Auto Procurement Strategy for Cost, Quality and Resilience
Auto Procurement Strategy for Cost, Quality and Resilience

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Auto Procurement Strategy for Cost, Quality & Resilience

Author:
Aykut Cakir · NMS Consulting

Published:
• Updated:

Quick Answer:
Build a clean spend baseline, keep launch quality tight with APQP and PPAP, and run sourcing waves across semiconductors, metals, plastics, batteries, logistics, and tooling. Align controls to IATF 16949, add battery-regulation checks for EU flows, and track resilience with dual source, buffers, and risk reviews.

Want a wave calendar, supplier scorecards, and a ninety day savings path?
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Signals and Guardrails

  • IATF 16949 sets the automotive quality baseline that flows through tier suppliers. source
  • APQP Third Edition and the standalone Control Plan manual update launch discipline and control methods. source source
  • PPAP Fourth Edition defines production approval so parts meet design and spec at rate. source
  • EU Battery Regulation introduces due diligence, labeling, and battery passports from 2027 for EV and certain industrial classes. source source
  • CPO guidance highlights cost control with reliability and risk in the same plan. source
  • Supply chain risk remains elevated; board visibility is often weak. source
  • Semiconductor resilience remains a concern, which affects auto electronics strategy. source

Foundations: Quality, Risk, and Data

  • Quality and Launch: Use APQP gates, Control Plans, and PPAP status to drive sourcing, supplier nomination, and launch readiness. reference reference
  • Risk and Compliance: Map battery-passport scope for EU shipments and set data handoffs with suppliers. reference reference
  • Data and Analytics: Build a spend cube and a cockpit for price variance, index linkages, lead time, OTIF, and PPM. Use risk flags for single source and line-down exposure. reference

30-60-90 Procurement Playbook

First 30 Days: Baseline and Controls

  • Build the spend baseline and supplier map across electronics, metals, plastics, batteries, interiors, logistics, tooling, and indirect.
  • Confirm APQP deliverables and PPAP readiness for active programs. Tie controls to IATF 16949 and customer-specifics. reference reference
  • Scope EU Battery Regulation impact for EV and covered industrial batteries. reference

Days 31 to 60: Sourcing Waves and Early Wins

  • Negotiate terms where contracts allow; add should-cost and index formulas for steel, aluminum, resins, and key electronics.
  • Stand up analytics for PPV, lead time, OTIF, and PPM; publish a weekly risk view. reference
  • Run logistics controls for premium freight and lane reliability.

Days 61 to 90: Supplier Development and Scale

  • Launch scorecards and quarterly reviews with cost, quality, delivery, and launch milestones.
  • Dual-source high-risk items where feasible; align control plans and change control with APQP and customer formats. reference
  • For batteries shipping to the EU, confirm passport data, QR access, and due diligence with suppliers. reference

Category Levers and Metrics

Category, Levers, Metrics, and Key Guardrails
Category Levers Metrics Guardrails
Semiconductors and Electronics Long-term agreements, buffer strategies, design-to-value Lead time, line-down risk, cost per ECU Supplier QMS aligned to IATF 16949; software and change control ref
Batteries and Raw Materials Dual source, index formulas, recycling credits $ per kWh, yield, scrap, warranty return rate EU Battery Regulation passport, labeling, and due diligence where applicable ref
Metals, Castings, Forgings Should-cost, yield improvement, tooling amortization Material index variance, uptime, PPM PPAP status and control plan coverage ref
Plastics and Interiors Spec rationalization, resin harmonization Scrap, cycle time, PPM APQP deliverables complete and current ref
Logistics Lane consolidation, penalty clauses, control tower OTIF, premium freight, damage rate Packaging standards; customs and trade compliance
Tooling and CapEx Multi-cavity analysis, lifetime pricing, refurbishment plans Tool uptime, yield, cost per part PPAP tool signoff and change control ref
Indirect and IT Software and tooling rationalization; catalog discipline Contract coverage, compliance, cycle time Access control and data retention

Frequently Asked Questions

How Should Procurement Use APQP and PPAP?

Treat APQP gates as entry checks for sourcing. Match control plans to the process, and keep PPAP status tracked through launch. The 2024 control plan manual clarifies methods and links across the core tools. reference reference

What Belongs on an Automotive Supplier Scorecard?

Cost and variance to index, PPM, escape rate, on-time in full, premium freight, launch deliverables, and corrective action effectiveness. Align the audit plan to IATF 16949. reference

How Do EU Battery Rules Change Sourcing?

Battery and materials suppliers that ship to the EU need passport data, labeling, and due diligence. These items belong in contracts and audits starting now. reference reference

Want a Ninety Day Automotive Sourcing Plan? We can deliver a spend cube, wave calendar, supplier scorecards, and a savings path tied to launch quality.

Request a workshop

Sources

  • AIAG. IATF 16949 Quality Management. https://www.aiag.org/expertise-areas/quality/iatf-16949-2016
  • AIAG. APQP Third Edition. https://www.aiag.org/training-and-resources/manuals/details/APQP-3
  • Quality Magazine. The AIAG Control Plan Manual (2024). https://www.qualitymag.com/articles/98156-the-aiag-control-plan-manual
  • AIAG. PPAP Fourth Edition. https://www.aiag.org/training-and-resources/manuals/details/PPAP-4
  • European Commission. Batteries Regulation overview. https://environment.ec.europa.eu/topics/waste-and-recycling/batteries_en
  • Battery Pass. Q&A and Content Guidance. https://thebatterypass.eu/wp-content/uploads/q-a_content-guidance.pdf
  • McKinsey. Ten CPO Actions for 2024. https://www.mckinsey.com/capabilities/operations/our-insights/operations-blog/procurement-2024-the-next-ten-cpo-actions-to-meet-todays-toughest-challenges
  • McKinsey. Supply Chain Risk Survey 2024. https://www.mckinsey.com/capabilities/operations/our-insights/supply-chain-risk-survey
  • Semiconductor Industry Association. Emerging Resilience in the Semiconductor Supply Chain (2024). https://www.semiconductors.org/wp-content/uploads/2024/05/Report_Emerging-Resilience-in-the-Semiconductor-Supply-Chain.pdf




About the Author

Aykut Cakir

Aykut Cakir

Aykut Cakir, Senior Partner and Chief Executive Officer, has a demonstrated history in negotiations, business planning, business development. He has served as a Finance Director for gases & energy, pharmaceuticals, retail, FMCG, and automotive industries. He has collaborated closely with client leadership to co-create a customized operating model tailored to the unique needs of each project segment in the region. Aykut conducted workshops focused on developing effective communication strategies to ensure team alignment with new operating models and organizational changes. 

 

 

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