Case study

smart gmbh

Product optimisation and cost reduction

PA Consulting Group supported smart gmbh - one of the leading manufacturers of innovative automotive concepts and a 100%-owned subsidiary of DaimlerChrysler AG - in optimising the development cost and production of some bought-in components for the new Smart roadster model.

Working with the client's development and purchasing functions, PA used its benchmarking database to calculate best practice performance times and costs for the development and supply of these vehicle modules. These were then discussed and agreed with the collaborating suppliers. To ensure savings with the system suppliers, PA worked with smart to develop a milestone plan for benefit delivery.

PA supported smart throughout the negotiating process to meet the purchasing cost targets, producing cost savings as well as improvements in budget planning accuracy and a platform for change management in the relationship between smart and its suppliers.