Sustainably increase profitability with comprehensive inflation management
With an integrated approach, suppliers can recover inflation-driven costs and strengthen their position in the value chain
to > 80%
integrated data
from procurement to sales
While OEMs in the automotive industry have been able to raise prices significantly in recent years, suppliers face shrinking margins. Contributing factors include the industry's electric transformation, increasing vertical integration, a more fragile global economy, and, most notably, inflation. The dramatic rise in raw materials, energy, and logistics costs is straining the entire supply chain.
Due to their unique position in the value chain, suppliers are particularly affected. They face pressure from both raw material suppliers and OEMs (‘the push-pull challenge’) and can often recover only 40-50% of inflation-driven additional costs. However, comprehensive inflation management can increase the recovery rate to over 80%.The key is a cross-functional, data-driven approach to identifying untapped recovery opportunities.
With EFESO's ‘End-to-End Inflation Management’, companies optimize the recovery of inflation-related costs across procurement, production, and sales. This approach provides complete transparency, actionable forecasts, and a stronger strategic negotiation position. As a result, companies can neutralize inflationary costs, capitalize on market opportunities, and improve their operational performance.
