Now or Never: Successful Best-Cost Country Sourcing in Automotive and Aerospace

In the current automotive and aerospace environment, getting best-cost country sourcing right is mandatory for success on a global scale. This Perspective identifies three sourcing maturity levels: Novice, Progressing, and Best in Class. It provides both a questionnaire for determining your company’s level and specific critical steps for success.

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Detlef Schwarting Angela Dum Robert Weissbarth Anna Mansson

Now or Never Successful Best-Cost Country Sourcing in Automotive and Aerospace
This report was originally published before March 31, 2014, when Booz & Company became Strategy&, part of the PwC network of firms. For more information visit

Contact Information Beirut Fadi Majdalani Partner +961-1-985-655 [email protected] Chicago Jan S. Miecznikowski Partner +1-312-578-4508 [email protected] Detroit Sudipta B. Ghosh Principal +1-248-680-3147 [email protected] Reid L. Wilk Senior Executive Advisor +1-248-680-3104 [email protected] Düsseldorf Detlef Schwarting Partner +49-211-3890-124 [email protected] Robert Weissbarth Principal +49-211-3890-134 [email protected] Florham Park Pat W. Houston Partner +1-973-410-7602 [email protected] Randy R. Starr Partner +1-973-410-7604 [email protected] Hong Kong Edward Tse Partner +852-3650-6100 [email protected] Munich Jörg Krings Partner +49-89-54525-574 [email protected] New Delhi Piyush Doshi Principal +91-124-499-8700 [email protected] Paris Patrice Naudy Partner +33-1-44-34-31-02 [email protected] São Paulo Luiz Vieira Partner +55-11-5501-6212 [email protected] Shanghai Joni S. Bessler Partner +86-21-2327-9800 [email protected] Tokyo Kazutoshi Tominaga Principal +81-3-6757-8711 [email protected] Vienna Angela Dum Principal +43-1-518-22-929 [email protected]

Yiqing Huang, Hans-Jörg Kutschera, Stephen Li, Athanasios Mintiouris, and Reid Wilk also contributed to this Perspective.

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Best-cost country (BCC) sourcing, the “traditional sourcing approach,” has been on automotive and aerospace agendas for quite some time. Nonetheless, in the past the notion of BCC sourcing was often characterized by a general skepticism reinforced by unsuccessful “trial and error” efforts. Today, however, the importance and necessity of BCC sourcing is unquestioned. Both industries have gone beyond merely trying to realize total cost of ownership (TCO) advantages in their BCC sourcing activities. Gaining a fair share of the rising demand in emerging markets is an increasingly important motivator for BCC sourcing programs, as automotive and aerospace companies work to develop sustainable local supply bases for local production in these regions. Indeed, in the current automotive and aerospace environment, getting BCC sourcing right is mandatory for success on a global scale. Based on comprehensive insights into prevailing BCC sourcing practices, we have identified three sourcing maturity levels of automotive and aerospace companies, both original equipment manufacturers (OEMs) and suppliers: Novice, Progressing, and Best in Class. We provide a questionnaire for determining your company’s level. Depending on where your company currently scores, we offer specific critical steps to improve your BCC sourcing strategies and your company’s overall competitive position in today’s increasingly globalized business environment.

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The evidence is hard to ignore—to thrive in the automotive and aerospace industries, best-cost country sourcing is an imperative and no longer a matter of choice or a luxury. And many companies are clearly getting the message: • Toyota recently asked its European suppliers not to start up any new parts production in developed countries but instead to vastly increase manufacturing activities in low-cost eastern Europe and emerging markets. • In 2009, a year after openi ng its first non-European final assembly line in Tianjin, China, Airbus began buildi ng a US$350 million parts factory in Harbin, partnering with a number of Chinese aircraft component manufacturers. • Jaguar Land Rover plans to increase its emerging-market sourcing rate by 50 percent in the next few years.

• Boeing seeks to double the number of employees at its parts factory in northern China to 1,200 in the next three or four years. • Honda is consolidating its supplier base in a concerted effort to shift automotive component sourcing from developed nations to emerging markets. These are just a few examples of the ongoing and growing emphasis on BCC sourcing in the automotive and aerospace industries. In fact, the few automotive and aerospace companies that claim to still be refraining from BCC sourcing probably already have it on their agendas or will very soon. Moreover, even experienced BCC sourcing practitioners have more competitive and perfor mance reasons now than ever before to continuously improve and bring their BCC activities to the next level.


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Sustainable Cost Advantages There are significant cost benefits from BCC sourcing not fully exploited yet. Historically, potential total cost of ownership savings from BCC sourcing—either through suppliers or through proprietary

plants—have run as high as 40 percent for tooling, 30 percent for machining, and 25 percent for die casting (see Exhibit 1). With substantially lower labor costs and salaries in countries considered “best cost”— ranging from China, India, and other

parts of Asia to eastern Europe, Mexico, and South America—these cost advantages have easily compensated for the associated add-on cost of sourcing products in a BCC, such as higher logistics costs, if “done the right way.”

Exhibit 1 Total Cost of Ownership Gains by Commodity

TRANSFER OF AEROSPACE PRODUCTION FROM WESTERN EUROPE TO CHINA (EXAMPLE) Commodity Total Cost Reduction Potential (TCO) 10%- 30% 5%- 15% 5%- 10% 10%- 25% 5%- 10% 8%- 15% 20%- 40% 30%- 40% 25%- 40%

Machining Sheet Metal Forming
Industrial Goods Services

Forging Aluminum Die Casting Grey and Spheroidal Cast Iron Plastic Injection Molding Tooling Payroll/HR Master Records Engineering Services

Source: Booz & Company

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Even with wages on the rise in BCCs—though still remaining well below levels in western Europe and North America, where wages are generally increasing also—the argument for BCC sourcing has not diminished. However, a thorough TCO analysis (taking into account all add-on costs such as logistics, supplier development, management oversight, and tariffs) and a pragmatic risk assessment (examining currency risk, oil prices, delivery issues, and the like) are even more essential now than in the past. Moreover, emerging-market suppliers are no longer known for poor quality and subpar engineering capabilities and productivity. Automotive and aerospace procurement officers confirm that their preferred BCC suppliers have a growing track record of quality and lead time improvements as well as enhanced engineering support; in addition, during the recent economic crisis, BCC companies have been among the most reliable. This implies that BCC sourcing

and the associated supply base have matured significantly. Rising Demand in Emerging Markets Beyond substantial cost benefits, exploding demand in emerging countries—in both business-tobusiness and business-to-consumer markets—is the latest driving force motivating and, in fact, requiring players in the automotive and aerospace industries to improve and expand their BCC sourcing activities. Strong and efficient local supply chains are a prerequisite to ensure sufficient supply for these escalating markets at a price point that generates sustainable profits. Today, the importance of these new growth markets is on the radar of every player in the automotive and aerospace industries. In the recent recession, when purchasing power in Western countries dropped significantly, sales in emerging countries countered the trend, and they are expected to show continued increases.

For example, passenger car sales in Russia are forecast to increase 17 percent year over year through 2014, reaching more than 3 million units, according to Business Monitor International. Two-thirds of these vehicles will likely be produced in Russia. China is expected to reach 20 million cars sold annually by 2014, two and a half times the volume in 2007. Nearly all of those cars will be manufactured in China. And by 2020, light vehicle sales in Asia are expected to exceed sales in North America and western Europe combined by about 4 million units, according to an IHS Global Insight forecast. That same year, Brazil’s auto market will likely top those in all European countries. As for aerospace, emerging markets also represent clear growth markets. For example, annual aerospace sales growth in the Middle East will reach 7.1 percent over the next 20 years, while Asia/Pacific (mainly


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Shifting Realities as Emerging Markets Mature In 2011, light vehicle sales in emerging markets are expected to exceed sales in mature markets. China is already the largest market for light vehicles in the world. Over the next 20 years, commercial aircraft demand in China will increase so quickly that the nation’s fleet of 20- to 149-seat planes will equal the fleets in Europe and the United States. Consequently, automotive and aerospace companies without a sustainable and competitive supply base in emerging markets could find themselves looking up at rivals occupying significantly larger market shares.

China and India) will account for a third of the aerospace market by 2029, exceeding North America and Europe combined, according to Global Insight. Moreover, emerging regions are also becoming increasingly important manufacturing locations for aerospace companies. For example, in the next five years, China is expected to double its value added in aerospace manufacturing, overtaking western Europe and making up about 22 percent of the aerospace industry worldwide. To capture a fair share of expanding markets in emerging countries, Western automotive and aerospace manufacturers and suppliers with facilities in these regions must rely on cost effectiveness and competitiveness. Sourcing the vast majority of the bill of materials locally is a sine qua non—the best companies source 90 percent—in large part because government regulations often impose stringent local content

requirements or grant subsidies on import duties when components purchased from local suppliers reach a certain level. In addition, services, especially engineering, are increasingly being contracted locally in emerging markets. Beyond taking advantage of high education standards and comparatively low salaries, local engineering expertise is paramount for customizing product specifications to local requirements and preferences. Indeed, with emerging markets growing rapidly and despite unsuccessful trials in the past, the development of a sustainable supply base in BCCs has become a race against time for automotive and aerospace manufacturers. In fact, these markets are evolving so quickly that leading companies are even changing their center of focus from Western facilities to emerging countries—that is, developing new products for BCC markets and then selling them globally, instead of the other way around.

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Still, BCC sourcing efforts in automotive and aerospace are showing different patterns as well as different degrees of excellence. General practice has seen substantial improvement— but not all companies are exploiting the full potential yet. In our view, there are three BCC sourcing maturity levels: Novice, Progressing, and Best in Class. An individual company’s level can be determined by its responses to questions about its current practices and experience (see Exhibit 2).

Novice: If the test identifies you as a Novice, you may have only started the journey toward BCC sourcing. In fact, you probably have a developing BCC sourcing program but still lack clearly defined targets. Most frequently, Novice companies are observed to make BCC sourcing decisions without a comprehensive total cost of ownership approach that takes into account all relevant cost dimensions and associated risks.

Exhibit 2 Assessing Your BCC Sourcing Maturity Level

QUESTIONNAIRE FOR MATURITY LEVEL ASSESSMENT Part A 1. You have set clear targets for sourcing from BCCs 2. You have moved at least 10% of your total procurement spend to BCCs 3. You have based your BCC sourcing decisions on a clear set of criteria and have implemented a structured approach (e.g., TCO) 4. You have been consistently encouraging your Western suppliers to develop a BCC footprint 5. You have established procurement offices in BCC that can at least carry out tactical sourcing 6. You have capabilities in key BCC markets to assess the local supply base and identify sustainable sourcing opportunities 7. BCC suppliers that have stable business with you are regularly receiving new RFQs and winning new business Yes No Part B 1. You have moved more than 40% of total procurement spend to BCCs 2. You source more than 70% locally for production in BCCs 3. You source both simple and complex parts in BCCs 4. You have certified local sources for all relevant raw materials in BCCs 5. You have mature procurement capabilities on-site in BCCs (e.g., tactical, technical, strategic) If ≥6 Part A questions are answered with "Yes" 6. You have established cross-functional skills and capacities on-site in BCCs (e.g., research and design centers, supplier development teams) 7. Your BCC sourcing targets are shared between purchasing, engineering, and business unit management 8. You are able to contract for parts and materials directly in BCCs 9. You are able to qualify and contract with Tiers Two and Three locally in BCCs 10. You have R&D resources in all relevant BCCs partly dedicated to reverse-engineering products to reduce costs for the local market and to customize specifications 11. You have a logistics concept in place in emerging markets to optimize transport and inventory costs 12. You are selectively grooming some BCC suppliers to become development partners Yes No

If <6 Part A questions are answered with "Yes"

If <10 Part B questions are answered with "Yes"

If ≥10 Part B questions are answered with "Yes"



Best in Class

Source: Booz & Company


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Progressing: If you’re a Progressing company, a sound TCO approach is integral to your BCC sourcing practice, which represents 10 to 40 percent of your total third-party spend, and your Tier One suppliers are encouraged to procure parts and materials from BCC Tiers Two and Three. The greatest challenge for many Progressing companies is to develop manufacturing facilities and a supply base in emerging nations with a strategic sourcing view—that

is, with the capabilities to assess the local market for real sourcing opportunities—rather than focusing on tactical sourcing only. To an increasing extent, most automotive OEMs and aerospace companies are in this category. Best in Class: If you’re a Best in Class BCC sourcing practitioner, the BCC share of your total third-party spend is likely greater than 40 percent, and a significant share of raw materi-

als used for production in emerging nations is sourced locally—ideally 90 percent or more. Best in Class companies have a mature local strategic sourcing organization supporting their own and their suppliers’ BCC sourcing efforts, resulting in a well-developed and fully integrated supply base. Less than 10 percent of all automotive and aerospace companies can be categorized as Best in Class. The majority of them are Tier One automotive suppliers.

Less than 10 percent of all automotive and aerospace companies can be categorized as Best in Class, most of them Tier One automotive suppliers.

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Each BCC sourcing maturity level offers its own opportunities, challenges, and ways to further develop capabilities. Nine out of 10 automotive and aerospace firms confirm that they are still struggling with common BCC sourcing pitfalls, according to a 2010 Booz & Company survey of industry players (see Exhibit 3). Among the biggest obstacles are gaining cross-functional commitment (for example, from engineering to support specifications customized to local requirements), acquiring

sufficient funding for quality control and supplier development, and a lack of enthusiasm for BCC sourcing from existing Western suppliers. As one aerospace procurement officer put it: “The suppliers are far away from ready when we identify them. We would need to develop them, and we do not have enough resources for that.” And an automotive company buyer pointed to another frustration in saying, “We stopped the ramp-up process

for a new Chinese supplier as he repeatedly delivered the wrong parts. Finally, we realized the drawing had changed, and no one notified the supplier.” Many automotive and aerospace companies have been creatively finding new ways to master BCC sourcing pitfalls. We have compiled a set of best practices for each sourcing maturity level to help companies step up to the next level (see Exhibit 4).

Exhibit 3 Main BCC Sourcing Pitfalls

MAIN PITFALLS Lacking cross-functional commitment (e.g., from engineering) Lacking resources (e.g., supplier development, quality control) Lacking support and competitiveness of existing Western suppliers Specifications based on Western methods, contracting impossible





Cultural and language issues


No capable suppliers found


Lacking processes and project management skills Infrastructure missing (e.g., IT interfaces, design interfaces) Failure to convey “undocumented specifications to BCC suppliers”




% of respondents identifying issue as main hurdle leading to delay or cancellation of BCC project

Source: Booz & Company survey of automotive and aerospace companies, 2010


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Exhibit 4 BCC Sourcing Maturity Framework

Targeted Steps for BCC Sourcing Maturity Levels

NOVICE - Use the best-practice areas for “doing it right the first time” - Focus on developing a supply chain concept, and start building the organization - Focus on getting implementation right

PROGRESSING - Focus on optimizing the already-existing BCC approach - Emphasis on: - How to develop suppliers - How to optimize the integrated supply chain - Further developing the local organization

BEST IN CLASS - Focus on optimizing cost for the alreadyexisting BCC sourcing - Emphasis on: - How to optimize the integrated supply chain - Creation of low-cost platform - Management of supply market dynamics 1 2 3 4 5 6 Create a clear overall supply chain concept Develop Best in Class suppliers Build the organization Optimize the integrated supply chain Adapt product specifications and create a low-cost platform Manage supply market dynamics

1 2 3 4 5 6

Create a clear overall supply chain concept Develop Best in Class suppliers Build the organization Optimize the integrated supply chain Adapt product specifications and create a low-cost platform Manage supply market dynamics

1 2 3 4 5 6

Create a clear overall supply chain concept Develop Best in Class suppliers Build the organization Optimize the integrated supply chain Adapt product specifications and create a low-cost platform Manage supply market dynamics

Key focus area



Best in Class

Recommended focus for different levels of BCC maturity

1 Create a clear overall supply chain concept Thoroughly categorize make-versus-buy parts in the emerging country. Source relatively standard and labor-intensive products with rather low intellectual property content from third parties, such as the following: -- A Western supplier with a BCC subsidiary (or incentivize an existing Western supplier to establish a BCC subsidiary) -- A local BCC supplier that has experience in producing the commodity product -- A less experienced local BCC supplier that clearly promises expected quality and performance improvements Manufacture parts in-house in an emerging nation when design is subject to proprietary technologies and intellectual property rights, 3 columns width 2 Develop Best in Class suppliers 2 columns width Suppliers in emerging markets need significant support to continuously meet the standards of Western OEMs and to realize potential cost savings on a sustainable basis. Leading automotive companies, mostly seeking lower costs and leaner operations, started building supplier development teams in emerging markets a decade ago. A general development plan includes setting up two different supplier-focused teams within purchasing. The supplier enabling team works with new or poorly performing suppliers in BCCs to raise their quality and delivery standards. The supplier development team supports supplier efforts to reduce costs through lean processes throughout the supply chain. Additionally, establishing “academies” in emerging nations helps new suppliers understand procedures and requirements. manufacturing processes are fairly complex, lead time requirements are stringent, and—in the case of a supplier to an OEM—customer interaction is substantial. Choose one of the following models: -- Taking a stake in an emerging-nation manufacturer -- Establishing a joint venture with a local partner -- Building a greenfield facility in a BCC

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3 Build the organization Multifunctional teams are an indispensable prerequisite to developing suppliers and fully optimizing the supply chain in BCCs. -- Teams should consist of the following: -- Purchasing specialists focused on supply market assessments and category strategies, vendor selection and contract management, project management, and tactical procure- ment tasks -- Quality engineers to approve suppliers -- Supplier development teams that could help suppliers evolve into preferred partners -- Engineering units supporting design and production approval processes (e.g., PPAP or POA) -- IT groups to escalate technology innovation As part of their responsibilities, these multifunctional teams should also “educate” the corporate community in the West about BCC sourcing opportunities and cultural issues; set cross-functional BCC targets and optimize global logistics; and accelerate the use of local raw materials as well as the export of parts produced in BCCs to facilities around the world.

4 Optimize the integrated supply chain

The full potential of BCC sourcing is only reached through supply chain integration beyond Tier One—that is, additional optimization of Tiers Two and Three. For example, an OEM doing final assembly in China might purchase Tier One parts from Japan—not perfect but perhaps close enough—but Tier Two and Three companies are shipping components from high-cost

countries like Germany and France and acquiring raw materials from Sweden; as a result, the cost gains that the OEM hoped to realize in its Chinese operations are being absorbed by its suboptimal supply chain setup. Such “parts tourism” is not only expensive, but also risky in terms of delivery lead times and reliability. To avoid and mitigate situations like this, collaborate with Tier One suppliers to

understand their total supply chain structure and determine whether it is aligned to the BCC sourcing effort. If inefficiencies are found, conduct supplier workshops to qualify or jointly develop alternative Tier Two and Three BCC suppliers, identify BCC options with existing suppliers, and generally redesign material flows.

5 Adapt product specifications and create a low-cost platform By importing Western parts and product specifications into BCCs, We s te r n automotive and aerospace companies are missing out on major opportunities in emerging countries that require customizing specs to local requirements. Only by adapting designs to support the increased use of products and materials from BCCs, as well as the particular demographic and economic market needs and preferences in these countries, will these companies enjoy innovation, stable market demand, and largely realized cost advantages. Eliminate this significant shortcoming through two steps: 1. Set up local teams of engineers— or take advantage of the skills of engineers at emerging-market suppliers or local engineering companies— to redraft the specifications of existing products and design new, lower-cost versions of these products aimed at emerging markets. The goal is to drive local sales, develop supplier networks in BCCs, and reduce production costs. 2. Introduce products redesigned for emerging markets back into Western countries as simplified and lower-cost models of existing items. For example, General Electric developed a portable electrocardiogram machine for sale in China and India and recently began offering the product in the United States at just 20 percent of the price of non-portable ECG equipment. Because the device is mobile, innovative, and inexpensive, it has received a welcome reception from the U.S. healthcare community, which is already developing new applications for the equipment, according to Harvard Business Review.

6 Manage supply market dynamics With extremely dynamic and fluid economies in emerging nations, only by continuously investigating the competitiveness of BCC sourcing efforts and exploring new potential supply markets can Best in Class automotive and aerospace companies stay successful in BCCs in the long run. Consequently, to remain Best in Class, a company must commit to a series of activities, some with implications in the short term and others in the long term. Short term -- Conduct competitive benchmarking on a regular basis to identify shifts in competitors’ BCC sourcing efforts, keep up-to-date on political and economic develop- ments in emerging markets, and identify risks and opportunities -- Manage immediate risks such as labor unrest, financial problems at a supplier, or capacity shortages -- Take advantage of immediate opportunities such as increased capacity -- Look for opportunities to create beneficial partnerships between BCC and Western suppliers Long term -- Intensify customer and supply market research as well as parts development in -- new BCCs and less developed areas of countries that have already enjoyed a decade or more of growth, such as China -- Encourage existing Western suppliers to establish production facilities in new best-cost areas, such as Southeast Asia and Africa -- Identify and realize opportunities for BCC suppliers with whom relationships already exist to expand their operations to other markets in order to leverage the best-cost footprint—for example, Chinese companies investing in eastern Europe or in bankrupt Western suppliers

Source: Booz & Company


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Leading Best in Class: A Case Example

A large automotive supplier is a perfect example of a company that is Best in Class in BCC sourcing; it has for more than a decade been one of the most bullish and successful adopters of the strategy. Starting slowly in the mid-1990s, the company’s first excursion into BCC procurement was a sourcing effort in China, both for local production and for export. But within a short time, the company had extended the effort into other emerging regions, such as eastern Europe, Mexico, and India, and at the same time set up development centers in China to help its suppliers purchase raw materials locally. Perhaps most important, at the beginning of the millennium, the supplier outpaced its competitors in BCC sourcing by transforming its BCC operations from a simple price-based approach to a TCO view, which meant that sourcing decisions would be driven by a comprehensive set of strategic criteria, such as supplier maturity and quality of output, transportation infrastructure and costs, and geopolitical risk. This sharp and ambitious change allowed the company to extend its BCC sourcing program into an even broader set of emerging markets and to set up a cross-functional organization across the map that supports BCC suppliers with training, development programs, and R&D.

Today the supplier sources more than 40 percent of its third-party spend from emerging markets. In addition to the usual procurement functions in the emerging markets, it has begun to establish technical procurement offices in strategic emerging markets to reduce product costs and adapt to local requirements. Indeed, these offices are part of a shift in focus in which the supplier is beginning to stress local sales, rather than exports, in key markets such as China. The company projects that by 2015 its BCC sourcing operations will account for more than 50 percent of its global procurement effort, and it targets greater than 90 percent local sourcing for its manufacturing facilities in emerging markets like China. The company’s farsighted approach to BCC sourcing has paid off in tangible and intangible ways. Even in the face of a severe downturn in the auto industry—and in an environment that forced many of its competitors to declare bankruptcy or to liquidate the business completely— the automotive supplier has been able to continue to spend heavily on R&D and position itself for growth with new products designed for emerging markets, while reporting annual results that outperformed the industry average.

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KEY HIGHLIGHTS • Traditionally an attempt to enjoy TCO advantages, BCC sourcing is increasingly important today for automotive and aerospace companies as a way to tap the rising demand in emerging markets. • Historically, automotive and aerospace companies have enjoyed TCO savings from BCC sourcing of 25 to 40 percent, depending on the activity. • Based on their BCC sourcing practices, automotive and aerospace companies can be broken into three categories: Novice, Progressing, and Best in Class. Depending on where a company fits, specific steps can be taken to improve its BCC sourcing strategies.


local suppliers, optimize the supply chain, and continue building the capabilities of cross-functional BCC organizations • Best in Class: Design product specifications for local markets and for possible introduction into Western markets, improve world-class BCC suppliers by implementing lean development programs, and investigate growth opportunities in the next wave of emerging markets Moving up a level takes vision and strategic foresight, commitment from top management, clear targets, and incentives, as well as work, diligence, and persistence. But for a sustainable BCC sourcing program, aerospace and automotive OEMs cannot do it alone. To drive true BCC transformation, a systemwide, concerted effort is absolutely imperative—including not only the company running the BCC sourcing program but also all of its critical suppliers.

With BCC sourcing continuing to rank high on automotive and aerospace companies’ agendas as globalization strengthens its foothold and as demand rises rapidly in emerging markets, there are lucrative opportunities for any company using the best-practice levers that we identified. Regardless of your company’s maturity level, immediate steps can be taken to improve BCC sourcing performance: • Novice: Set clear cross-functional BCC sourcing targets, rigorously institutionalize TCO assessments, and start building the BCC organization • Progressing: Increase the share of BCC sourcing in total third-party spend (even for more difficult commodities), develop more truly


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About the Authors Detlef Schwarting is a Booz & Company partner based in Düsseldorf. He specializes in procurement and sourcing, with particular focus on strategic sourcing, procurement operating models, and technical cost reduction. His industry experience includes engineered products industries, healthcare, and high technology. Angela Dum is a Booz & Company principal based in Vienna. She has broad experience advising clients in automotive and aerospace industries on a wide range of procurement-related topics. In particular she supports automotive and aerospace clients along their BCC sourcing agenda— from developing strategic BCC sourcing road maps to improving their operational BCC sourcing efforts (e.g., supply base development). Robert Weissbarth is a principal with Booz & Company in Düsseldorf. He is the leader of the European sourcing expert team specializing in emerging market bill-of-material sourcing, supplier relationships, and sourcing organization, with a focus on automotive OEMs and suppliers, high technology, and electronics manufacturers. Anna Mansson is a senior associate with Booz & Company in Munich. She specializes in strategic sourcing for the automotive, aerospace, and consumer industries. In addition to her wide experience in sourcing and supply chain projects across different regions and industries, Anna has worked as an automotive sourcing manager in Europe and China, with particular focus on emerging-market sourcing.

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