In the rapidly evolving automotive manufacturing industry, the rise of electric vehicles (EVs) is reshaping the landscape. Original Equipment Manufacturers (OEMs) are reimagining their procurement strategies to adapt to this transformative era. Let's explore the diverse categories that define automotive OEM procurement, with a special focus on the electrified future:

• Drivetrain Components: For electric vehicles, drivetrain components include advanced battery systems, electric motors, and power electronics. These cutting-edge elements are crucial for EV propulsion, enhancing efficiency, range, and performance. Additionally, self-driving technology, both hardware and software, has become a key differentiator among EV manufacturers. These technologies are often closely guarded, sourced through exclusive partnerships, or integrated vertically by OEMs.

  
  
  
  

• Raw Materials: The shift to electric mobility significantly impacts raw material sourcing, increasing demand for lithium, cobalt, and other essential elements in battery production. However, structural components like chassis, doors, windows, and body panels continue to share a common supply base with traditional gas-powered vehicles, as the shift to EVs has not significantly altered these requirements.

• Sub-assemblies: EVs depend on numerous components and sub-assemblies, such as high-voltage wiring harnesses and regenerative braking systems. These modular components allow OEMs to optimize the unique performance and efficiency features of electric propulsion. Procurabl's robust BOM management capabilities streamline coordination across these complex assemblies.

• Charging Infrastructure: While some leading OEMs develop their own vertically integrated charging infrastructure, most form partnerships that require careful management. Indirect materials for EV charging services include various supporting technologies and solutions, which are vital for the widespread adoption and sustainability of electric mobility.

• Tooling and Equipment: Specialized tooling and equipment are essential for manufacturing EV-specific components like battery packs and electric motors. These investments are crucial for establishing efficient and scalable production lines for electric vehicles.

• Aftermarket Parts and Services: The growing EV market presents new opportunities in the aftermarket sector, with increasing demand for EV-specific replacement parts, accessories, and maintenance services. OEMs need to adapt their offerings to meet the unique needs of EV owners.

• Service Infrastructure: As electrification transforms the automotive industry, OEMs require specialized services to support their EV initiatives. This includes battery recycling, technical support, and maintenance for electric drivetrains, all of which drive innovation and accelerate the shift to electric mobility.

• Outsourced Manufacturing: To meet the rising demand for EVs, OEMs may collaborate with outsourced manufacturing partners to quickly scale production capacity. Contract manufacturers specializing in EV production play a critical role in meeting market demand and speeding up time-to-market.

• Quality Assurance and Testing: Ensuring the safety and reliability of EVs involves comprehensive quality assurance and testing programs. OEMs invest in rigorous testing for battery performance, thermal management, and vehicle electrification systems to provide customers with peace of mind.

As OEMs navigate the electrified landscape, the procurement journey is defined by innovation, sustainability, and a commitment to shaping the future of mobility. By embracing these key procurement categories, OEMs can drive towards a cleaner, smarter, and more sustainable automotive future.

Procurabl specializes in sourcing solutions for the automotive industry's direct material categories. Our platform enhances BOM management and sourcing, offering intuitive tools for quick insights and identifying cost-saving opportunities. Discover more about Procurabl's BOM cost management capabilities and how we can transform your procurement process.

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