The brands and models manufactured in Slovakia are well sold in the markets, and innovation in the supplier space will be key for the future success in a highly competitive market.
Industry 4.0, Internet of Things, Big Data, Digital Factory, Smart Manufacturing – topics that are constantly being discussed in the automotive industry. But how to start with Digital Transformation? How important is it for us? Is our IT ready for such a change? Are we effective when implementing such solutions? Am I ready for the risks of the digital world?
Štefan Čupil, Director, Risk Assurance Services and Information Technology
PwC has helped several manufacturing companies to analyse their current status, to develop a reasonable target model and how to get there using a proven methodology - Digital Maturity Assessment. Thanks to a close internal co-operation PwC team is able to connect the business process, financial and legal requirements and current technology capabilities, not omitting the Risk Assessment, Information Security and General Data Protection Regulations.
PwC performed an IT Costs Review for a major automotive manufacturer, which made the IT financing more transparent and assisted in the optimization of its IT planning process to ensure the appropriate business case calculations.
Our team was able to define requirements for a new IT system and assisted with the IT System Selection for a large company in manufacturing industry. With our professional Project Assurance service, we helped to ensure the successful implementation of the system according to customer’s specific requirements and needs.
The key objective of operational managers is to meet the company’s profitability and growth objectives, and, ideally, go beyond the everyday requirements and create a competitive advantage. Therefore, operational managers need to increase sales, improve operational effectiveness and transform the business.
Pavel Dvornák, Director, Company Transformation and Operational Excellence
Our client was incurring high operational costs during manufacturing and faced strong competition. We were asked to evaluate the issues, perform a business assessment of critical operational areas (incl. planning, manufacturing, maintenance and logistics). After the review, we created a transformation plan with management which included specific solutions and savings targets. The client wants our team to continue to support the implementation to accelerate growth and increase profitability. During the implementation phase (80% of our project), we worked hand in hand with the clients’ employees to achieve successful change management, ensure the sustainability of changes, and obtain buy in from operational staff.
As a result of assisting our clients in a business transformation in Slovakia, the client achieved 20% productivity growth. Thanks to improved labour utilisation and improvements to the manufacturing processes, the company achieved cost reductions of EUR 3.1 million and was ranked the second most productive company in the industry in the European market. The duration of the project was ten months. As a result of our assistance, another company involved in plastic material development and manufacturing increased the effectiveness of its sales department. They achieved rapid sales growth resulting in overall 15% growth. The duration of the project was nine months.
Due to ongoing economic growth and recent significant investments and demographic effects, many automotive companies are affected by major changes on the labour market: lack of skilled employees, strong competition for experienced specialists, increasing salary costs, rising recruitment costs and retention issues. Companies need to reassess how they attract and recruit new employees, reconsider their employment and bonus policy, and pay more attention to recognition and work / life balance.
Ľudmila Guerin, Manager, Human Resources Services
PwC has helped a client to improve the labour situation in its central warehouse. PwC provided the following HR services: A compensation survey analysing the market position taking into consideration compensation packages and benefits. A detailed location study identifying relevant workforce supply in a radius of 30 km from the location. In addition, typical transport routes and travel conditions were analysed. Based on the results of these services, our client was able to adjust the compensation packages and to better attract more employees, to identify locations with the right workforce and better target potential hires.
Due to the popularity of social media, easy access to information, reviews and opinions, customers are increasingly well informed and ever more demanding. Car dealerships have to respond to this situation by exploring new areas to find and attract potential customers and by anticipating customers’ needs and providing them with personalised offers for products they are searching for.
Jens Hörning, Partner, Slovakia and CEE Automotive Leader
We were asked by a car dealer to improve sales efficiency and better target his marketing activities. Using internal company data, we started with a prediction of customer needs at every stage of the life cycle: marketing, purchase and aftersales. We also made use of a wide range of external geographical and demographic data sources that PwC collects, processes and analyses. We matched these data sources together to create an extensive database about customers and markets. As a result, we were able to advise our client, where their existing and potential clients are located, what is their driving pattern (how often, where and when they drive), where they shop, sizes and structure of company’s car fleets, etc.
After implementation of the program and management‘s refocused marketing strategy, the car dealer was able to increase the efficiency of its marketing campaigns by 20%, the frequency of client contact and visits by 15%, car sales by 5 – 10% and attraction of new clients by 5 – 10%.