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Product Cost Management for Automotive Suppliers

To win new business, automotive suppliers must demonstrate capabilities to meet target price estimates, and act as true collaborators in reducing program costs. With an integrated product cost management solution that combines the power of a PLM platform with sophisticated product cost management tools, suppliers can forecast and analyze target costs, best cost-based purchase prices and profitable sales prices. more >

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Automotive cost management and profitability analysis during new product development and introduction (NPDI)

Cost Estimation & Management Software for Automotive Supplier

Learn within our webinar how a cross-functional collaborative cost estimation and management solution can help your company define profitability at an early stage of the product lifecycle.

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Solution Capabilities

Explore the key features of this solution.

Target Costing

Target Costing

Accurately estimate the costs of delivering automotive components by analyzing and simulating direct material costs and manufacturing overheads from the bill of materials (BOMs) and bill -of- process (BOPs).

Profitability Calculation

Profitability Calculation

Calculate relevant profitability indicators such as internal rate of return, net present value, and payback periods. Compare automotive parts programs to make the best investment decisions.

Purchased Part Cost Analysis

Purchased Part Cost Analysis

Run reliable cost calculations of purchased parts from your downstream suppliers. Conduct cost structure negotiations and value engineering workshops with your suppliers using more accurate cost estimates.

Design-to-cost

Design-to-cost

Represent the price structure of automotive parts and systems. Predict the impact of design-related changes on prices quickly. Choose the best manufacturing methods based on cost simulations

Open-book-negotiation

Open-book-negotiation

Negotiate with OEMs using comprehensive cost reports and dashboards. Have more informed conversations with OEMs and upstream purchasing experts to establish fair prices.

Tool Costing

Tool Costing

Constantly optimize tool spending and ensure the improved offer performance of your suppliers by creating timely and reliable cost estimates for tool cost analysis.

BOM & 3D Cost Simulation

BOM & 3D Cost Simulation

React quicker to changes in your product design, material selection, and manufacturing processes by analyzing costing data that use BOM and 3D product data from the PLM system.

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Product Cost Management for Automotive Suppliers
Product Cost Management for Automotive Suppliers
Product Cost Management for Automotive Suppliers

OEMs and Tier 1 suppliers expect price reductions from downstream suppliers as part of their continuous improvement initiatives. In the pursuit of vendor consolidation, automakers are looking for suppliers that can demonstrate capabilities to meet target price estimates and act as true collaborators in helping to reduce program costs. The ability to accurately estimate costs is critical for automotive suppliers to win or lose business.

Siemens PLM Software offers an integrated product cost management solution that combines the power of the world’s leading global PLM platform with sophisticated product cost management tools all in one system. Auto suppliers can implement standardized costing methods and analyze accurate estimates of product costs.

The knowledge of cost drivers and how engineering changes affect estimates are critical in realizing product cost targets. Integration with the PLM platform enables cost engineers to work within the context of the product lifecycle to obtain reliable cost estimates regarding target costs, best-cost-based purchase prices and profitable sales prices.

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Product Cost Management for Automotive Suppliers
Product Cost Management for Automotive Suppliers
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