Automotive Industry Case Study

Cutting logistic costs by offering pay-per-use payment options in the automotive industry.

PROBLEM

Problem

 

An automotive contract manufacturer was encountering unnecessary logistics costs due to complex shipping systems. The products were sent around the globe without adding significant benefits, which increased the company's production costs by about 30 percent. 

Therefore, these three key questions must be addressed:

1. How can the contractor decrease logistics costs?

 

2. How can the production process be monitored if the machine is no longer part of the actual company?

3. How can a more transparent payment structure be established?

SOLUTION

Solution

 

The automotive tier-one customer provided space at their production site for the manufacturer to set up the equipment. linx4 generated the necessary usage data to ensure efficient production performance while our two-factor-data-verification process enabled a successful usage-based pre-financing implementation.

OUTCOME

Outcome

 

Reliable data allows for remote management of operational production. The flexible financial product resulted in tax payment and cashflow optimization as well as positive off-balance-sheet effects. 

Key take-aways

Secure and reliable data is the basis for enabling new data-driven business models that lead to positive effects on logistical costs and thus permit the company to offer more competitive prices.

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The customer made the desirable switch from CAPEX to OPEX.

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Establish new business model (EaaS)

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Balance-sheet and tax payment optimization

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