SNECI has recently provided commercial support to an Italian supplier of tubes in order to regain its market share within the supplier panel of a major European OEM.
Quite often on “commodity” parts, the purchasing policy of OEMs is focused on the financial aspect of the offers. It is usually a supplier with the lowest price on the current production who gains the most market share at the end. Therefore, it is vital to maintain a regular follow-up with the buyer and stay updated on the competitor prices on such a highly competitive and cost-oriented market. For this, each supplier of car parts has to have a professional commercial representative with deep roots in automotive to ensure successful closure of the deal.
As a part of our Business Development activities, we frequently support international suppliers during RFI and RFQ project phases. Most importantly, our highly-skilled team members with commercial and technical backgrounds assist clients in their communications with car makers.
Just recently, we have supported an Italian supplier of tubes in its negotiations with a major European OEM. Despite a long history of deliveries with the OEM, the supplier was losing its market share to the competitors with a lower price per component on the final stages of the RFQ.
“We helped the supplier to set up a close RFQ follow-up process with the OEM,” states Hervé Champion, Director of Business Development at SNECI. “This was done in order to avoid being excluded from the market and be prepared to make a better last offer before the final allocation of the business.”
Thanks to SNECI, the Italian supplier was able to sustain its production volume that was constantly decreasing over the past three years, increasing its market share at the OEM to the previous level. “The objective is clearly not to stop at the current level, but to become #1 on the supplier panel“, says Hervé Champion.