Discover how TARGUS helped a leading automotive supplier boost cost efficiency and secure long-term viability at its German locations through innovative material cost optimization.
The Challenge
An established automotive supplier faced mounting cost pressures due to the industry’s shift toward electric vehicles and muted market demand. The introduction of new CO₂ emissions regulations made the environment even more challenging. To ensure continued investment and retain production sites in Germany, the company needed to achieve both immediate and lasting reductions in material costs – something earlier initiatives lacked the readiness and follow-through to deliver.
Our Approach
TARGUS partnered with the client to design and drive sustainable cost optimization across three manufacturing plants. Our process featured:
- Rapid identification and execution of quick wins to secure early results
- Development of a long-term action roadmap closely tied to budget and strategic goals
- Strong change management, with cross-functional teams, transparent communication, and a culture open to learning from setbacks
- Dedicated program management office (PMO) to ensure effective implementation and scale pilot successes company-wide
Key Results
TARGUS enabled the client to:
- Generate over €20 million in annual EBIT improvement potential
- Realize €5.5 million in material and operations savings within the project period
- Reduce more than 5,000 truck shipments and save 100,000 metric tons of raw materials annually
- Establish new process standards and best practices for greater sustainability and transparency
Lessons for Industrial Manufacturers
- Build transparency and simple goal systems: Clear targets drive organizational focus and engagement.
- Capture early quick wins: Fast success builds momentum and credibility, while a well-structured roadmap supports lasting results.
- Invest in change management: Open communication, an environment that encourages idea sharing and learning, and cross-functional teamwork release innovation potential.
- Scale rapidly: Move from pilot programs to broad-based implementation for measurable business impact.
Industry Application
The TARGUS approach to material cost optimization is proven for manufacturers facing high-cost pressures and complex regulatory demands. Our methodology can be effectively transferred to automotive, industrial, and process manufacturing companies.
Is Reducing Material Costs Your Priority?
Contact TARGUS today to learn how we can uncover and realize sustainable efficiency gains together.
