What Does a CX Consultant Do? What Does CX Stand For?
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Auto procurement consulting improves how OEMs and Tier 1 suppliers source parts and services. Advisors define category strategies, run sourcing, negotiate, and raise supplier performance with APQP and PPAP controls, IATF 16949 alignment, and OTIF and PPM targets. The result is lower total cost, fewer surprises, and faster, safer launches.
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What is auto procurement consulting?
It is the application of strategic sourcing, supplier development, quality core tools, and risk controls to automotive categories. Advisors answer two questions: what does a procurement consultant do and what is procurement in the automotive industry. In short, they deliver savings, resilience, and launch assurance across a tiered supply base.
Why it matters now
Deloitte’s 2025 CPO survey shows leaders are increasing digital and AI investment, with top performers allocating up to 24% of budgets to tech and reporting about 3.2x returns on generative AI. Procurement is also doubling down on risk visibility and multi-sourcing.
What do automotive consultants do for Tier 1 buyers and suppliers?
- Category strategy and should-cost. Build clean sheets and value models for castings, stampings, electronics, software, and logistics lanes.
- Sourcing and negotiation. Competitive events, dual-sourcing plans, and long-term agreements tied to indexation and service levels.
- Launch excellence with APQP and PPAP. Gate reviews, control plans, and production part approval packages to de-risk SOP.
- Supplier development under IATF 16949. Corrective action, layered audits, and customer-specific requirements.
- Performance management. OTIF for delivery reliability and PPM for quality, with recovery and improvement plans.
| Finding | Figure or term | Source |
|---|---|---|
| Digital leaders’ investment in procurement technology | Up to 24% of budget; ~3.2x ROI on generative AI | Deloitte 2025 Global CPO Survey (press summary) |
| Automotive quality core tools used by Tier 1 suppliers | APQP, PPAP, FMEA, MSA, SPC | AIAG overview |
| Quality system baseline for automotive suppliers | IATF 16949 (built on ISO 9001) | IATF; AIAG |
| Delivery reliability metric | OTIF: on-time, in-full | Celonis guide; MRPeasy explainer |
| Defect quality metric | PPM: parts per million defectives | Six Sigma references |
| Supply base structure | OEMs buy from Tier 1; Tier 1 from Tier 2 and 3 | Time:matters glossary; Wikipedia Tier 1; McKinsey automotive sourcing note |
Use these as anchors for governance and dashboards in any auto Tier 1 procurement consulting program.
What is procurement in the automotive industry?
Procurement plans and secures direct materials, tooling, and services across a tiered network. OEMs source systems from Tier 1 suppliers that in turn manage Tier 2 and Tier 3 manufacturers. Tier 1s must meet just-in-time schedules while passing PPAP and customer-specific requirements.
A simple Tier 1 playbook
- Baseline. Map categories, contracts, and risk. Stand up OTIF and PPM reporting with supplier scorecards.
- Stabilize launches. Enforce APQP gates and PPAP readiness with cross-functional signoff.
- Capture value. Run strategic sourcing and should-cost, then lock in terms tied to demand and commodity indexes.
- Build resilience. Qualify alternates and increase supply visibility, echoing CPOs’ top risk levers.
Speak with an automotive procurement consultant
Related NMS content
See digital and technology for tooling and data pipelines, business transformation for operating model and PMO alignment, and post merger integration for supplier consolidation during deals.
Sources
- Deloitte. 2025 Global Chief Procurement Officer Survey (press summary). https://www.deloitte.com/us/en/about/press-room/2025-chief-procurement-officer-survey.html
- AIAG. Automotive Quality Core Tools overview. https://www.aiag.org/expertise-areas/quality/quality-core-tools
- AIAG. APQP overview. https://www.aiag.org/training-and-resources/training-catalog/details/APTP
- Wikipedia. Advanced Product Quality Planning (background). https://en.wikipedia.org/wiki/Advanced_product_quality_planning
- Wikipedia. Production Part Approval Process (background). https://en.wikipedia.org/wiki/Production_part_approval_process
- IATF Global Oversight. About IATF 16949. https://www.iatfglobaloversight.org/iatf-169492016/about/
- AIAG. IATF 16949:2016 overview. https://www.aiag.org/expertise-areas/quality/iatf-16949-2016
- Celonis. What is OTIF. https://www.celonis.com/blog/otif-explained-the-what-why-and-how-of-optimizing-for-on-time-in-full-delivery/
- MRPeasy. OTIF guide. https://www.mrpeasy.com/blog/on-time-in-full-otif/
- Six Sigma Daily. PPM basics. https://www.sixsigmadaily.com/dpu-dpmo-ppm-and-rty/
- Time:matters. Tier 1 supplier definition. https://www.time-matters.com/emergency-logistics-glossary/tier-1-supplier/
- McKinsey. Where procurement is going next. https://www.mckinsey.com/capabilities/operations/our-insights/where-procurement-is-going-next
- McKinsey. Automotive product development and supplier collaboration note. https://www.mckinsey.com/capabilities/operations/our-insights/automotive-product-development-accelerating-to-new-horizons
- McKinsey. Software should-costing for automotive (PDF). https://www.mckinsey.de/~/media/McKinsey/Industries/Advanced%20Electronics/Our%20Insights/Software%20should%20costing%20A%20new%20procurement%20tool%20for%20automotive%20companies/Software-should-costing-A-new-procurement-tool-for-automotive-companies.pdf
About the Author
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.
