One company. One process. One goal
Tackling the bill of materials (BOM) costs, intelligent growth and the impact of increased globalisation were the main messages to come out of TRW’s latest leadership conference.
Of the move to tackle BOM – or in layman’s terms ‘the cost of purchased materials’, which for TRW accounts for up to 58 percent of the cost of sales, executive VP and CEO, Steve Lunn, said: “During the crisis we attacked all fixed costs. We now have to make sure we don’t start behaving as if the good times have returned.”
Common Global strategy
Aiming for a single, Global process for BOM management by implementing best practice policies, TRW will initiate a strategy based on managing the cost of materials across the life cycle of the products.
‘Not just about a profitable first three years – but from quotation to end of vehicle life’
Peter Lake, exec VP, sales & business development, spoke of generating value through intelligent growth and ensuring that resources are deployed to deliver the best return for the company.
With some suggesting that the annual global car parc could rise to 100 million vehicles by 2020, he spoke of there being ‘inherent, long term growth in vehicle build’ and of ‘TRW being well placed with its portfolio of products which is forecast to grow more or less in line with vehicle build.’
Organic growth for success
With a focus on ‘solid, organic growth’, rather than ‘quick silver bullet acquisitions’, Lake spoke of TRW being in a good position to benefit from growing markets such as Brazil and ‘the silver lining for growth’, China, where TRW aspires to have 30 percent market share by 2020.