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Mock-up of a strategy paper titled 'Operational Levers for Automotive Supplier Profitability', featuring an automotive assembly line photo and light blue background, promoting efficiency and revenue improvement strategies for suppliers.
Automotive
Operational Excellence
24.07.2025 | Strategy Paper

Boosting Automotive Profits

Unlock operational excellence today

Unlock operational excellence with five actionable levers to enhance efficiency, reduce costs, and increase profitability across the automotive supply chain.

Why Operational Excellence is Critical for Automotive Suppliers

In a landscape shaped by rising costs, supply chain disruptions and shrinking margins, operational excellence is not a competitive edge — it’s a survival factor. The ability to run efficient and resilient operations directly impacts profitability and long-term success.

Five Operational Levers to Improve Profitability

H&Z’s strategy paper offers a practical roadmap for automotive suppliers to improve profitability through five proven levers:

1. Boosting Productivity through Lean Production

Identify inefficiencies and apply lean production methods and structured labour analysis to improve throughput and shopfloor performance.

2. Reducing Quality Costs

Cut down on rework and defects with our four-level quality control loop, which enhances trust and strengthens delivery reliability by managing quality costs effectively.

3. Managing Inventory & Lead Time

Drive inventory management efficiency and reduce lead time through advanced analytics and planning tools that optimise working capital and responsiveness.

4. Optimising Layout & Floor Space

Free up space and enhance flow efficiency with smart, data-driven layout redesigns — unlocking capacity and reducing friction in operations.

5. Maximising Equipment Efficiency and OEE

Increase equipment efficiency and improve Overall Equipment Effectiveness (OEE), driving down unit costs without requiring additional capital investment.

Diagnostics with OPE & Process Mining

At the heart of our methodology is the Operations Performance Evaluation (OPE), supported by process mining. This approach allows for fast, structured diagnostics and the development of a cost-out roadmap that delivers both immediate and sustainable results.

This is not about cutting costs for the sake of it. It’s about building a high-performance operations system that’s ready for the challenges ahead. By activating these five levers, suppliers can improve profitability, build resilience, and thrive in a complex automotive landscape.

Download our Paper here

Contact Our Experts

Dr. Albert Neumann

Partner
Dr. Albert Neumann is a Partner at H&Z and an expert in the automotive industry, focusing on corporate strategy, R&D, and integrating sustainability through digitalisation and circular economy approaches​.
Dr. Albert Neumann

Sandra Stoll

Partner
With 20+ years in the sector, Sandra leads H&Z’s Industrial Goods Practice and is passionate about driving measurable performance improvement. Recognized as a trusted advisor, she specializes in performance solutions for industrial goods companies, especially SMEs — delivering hands-o
Sandra Stoll

Michael Tines

Senior Expert
Michael Tines

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