📋 Case Study

Automotive Tier-1 Supplier Cost Roll-Up Accuracy Improvement

17% cost variance between ERP roll-up and actual landed cost due to unaccounted customs duties and packaging fees

🏗️ Project Overview

New EV battery pack BOM for German OEM

🎯 Challenge

17% cost variance between ERP roll-up and actual landed cost due to unaccounted customs duties and packaging fees

🔧 Design Approach

Built custom cost roll-up engine integrating ERP, freight forwarder APIs, and tariff databases (HTS codes)

📐 Design Diagram

AI-generated project design illustration

📐 Key Calculations

Landed Cost Variance

|Planned − Actual| / Planned

Result: 2.1%

Met OEM’s ±3% target tolerance

📊 Results

Achieved 99.4% cost accuracy; reduced quoting cycle from 11 to 3 days

💡 Lessons Learned

• •Duties, insurance, and handling are non-negotiable inputs in cost roll-up
• •Supplier-provided MOQ and tiered pricing must be modeled dynamically

✅ Key Takeaways

• 1Duties, insurance, and handling are non-negotiable inputs in cost roll-up
• 2Supplier-provided MOQ and tiered pricing must be modeled dynamically