Case Study: a major global automotive supplier uncovers margin drivers with Axis Group

a major global automotive supplier reveals 50% margin drivers with Axis Group

The Finance team at a major global automotive supplier needed to understand the complex drivers affecting manufacturing margins across thousands of components but could only analyze them one at a time. They challenged Axis Group to provide deeper insight into cost fluctuations from factors like component pricing, currency changes, and bill of materials modifications.

Axis Group designed a centralized analytics solution, marrying exploded bills of materials with SAP pricing data. This enabled the finance team to quantify the exact contribution of each margin driver, such as pinpointing that a 30% cost increase was due to component prices. With this platform, Axis equipped the client to conduct deep margin analysis, negotiate with suppliers, and justify product pricing to protect profitability.