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Slovakia is an automotive country. This industry is the key driver of growth, and the future economic development will depend on how the global automotive landscape will develop.
The brands and models manufactured in Slovakia are well sold in the markets, and innovation in the supplier space will be key for the future success in a highly competitive market.
Services and client experience PwC Slovakia
- Digital transformation
- Operational excellence
- Labour challenges
- Financing of investment projects
- Reduction of import duties
- Effective sales, staying competitive in retail
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Digital transformation
Industry 4.0, Internet of Things, Big Data, Digital Factory, Smart Manufacturing – topics that are constantly being discussed in the automotive industry. But how to start with Digital Transformation? How important is it for us? Is our IT ready for such a change? Are we effective when implementing such solutions? Am I ready for the risks of the digital world?
Štefan Čupil, Partner, Risk Assurance Services and Information Technology
PwC has helped several manufacturing companies to analyse their current status, to develop a reasonable target model and how to get there using a proven methodology - Digital Maturity Assessment. Thanks to a close internal co-operation PwC team is able to connect the business process, financial and legal requirements and current technology capabilities, not omitting the Risk Assessment, Information Security and General Data Protection Regulations.
PwC performed an IT Costs Review for a major automotive manufacturer, which made the IT financing more transparent and assisted in the optimization of its IT planning process to ensure the appropriate business case calculations.
Our team was able to define requirements for a new IT system and assisted with the IT System Selection for a large company in manufacturing industry. With our professional Project Assurance service, we helped to ensure the successful implementation of the system according to customer’s specific requirements and needs.
Operational excellence
The main task of operations managers is to achieve the defined business goals as regards profitability and corporate growth (ideally beyond the boundaries of daily requirements) and create a competitive advantage. Therefore, operations managers need to increase sales, improve operational efficiency, and transform the business.
Ivo Doležal, Leading Consulting Partner
We specialize in implementing transformation projects in the automotive industry to cut costs and increase operational efficiency. Our expertise includes comprehensive initiatives focused on re-engineering strategic approaches to management.
Our client, who faced high operating costs and tough competition, requested help with assessing key operational areas and developing a transformation plan. Together, we drew up a plan with specific solutions and savings goals, which were implemented in a 10-month project. During 80% of the implementation phase, we were in close contact with the client’s employees to effectively manage changes and ensure their sustainability. Our client recorded a 20% increase in productivity in Slovakia and cost reductions of EUR 3.1 million, being now the second most productive firm in its sector on the European market.
As part of a European project with a leading windscreen supplier, we comprehensively reconfigured the supply chain strategy. The project ran at two production plants, a central distribution hub, and the company’s headquarters.
Our approach focused on transformation management. We performed an extensive analysis and then redesigned aspects of the supply chain, including switching from the “make to stock” approach to a “make to stock” and “make to order” hybrid model. By applying our analytical knowledge, we designed comprehensive solutions which we integrated into an SAP platform. The outcome of this process was a new operational model and strategic framework.
The objective of this strategic transition is to bring measurable benefits to our client. These benefits include improved cash flows, a significant reduction in operating costs, higher operational effectiveness, and a considerable improvement in the quality of customer service. This quality improvement applies to critical areas, such as on-time delivery and overall service excellence, which will help our client grow and thrive in the highly competitive automotive industry.
Challenges in the labour market
In the current economic situation, most companies in the automotive sector are facing a number of challenges on the labour market simultaneously: a shortage of qualified staff and experienced experts, high staff turnover, rising labour costs, and increasing costs of attracting and retaining staff. Therefore, companies must focus on retaining qualified staff and effective recruitment, remuneration, and employee engagement to improve staff productivity. Employers need to prioritise the interconnection between remuneration and workforce performance, transparency and clarity as regards achieving goals, and the work-life balance of their employees.
Anna Strýčková, Senior Consultant, HR Consulting
PwC assisted a client to improve the personnel situation at its central warehouse by providing specific HR services. Our initial survey helped us determine the client’s position on the labour market as regards remuneration and employee benefits. We also conducted a detailed analysis of the locality to identify workforce availability within 30 km of the logistics centre and analysed transportation possibilities and conditions in this locality. By applying the recommendations from our work, the client was able to adjust its remuneration scheme, which helped increase its competitiveness on the labour market and improved staff recruitment.
Funding investment projects
In Slovakia, a number of sources of aid are available from government funds and EU funding schemes (e.g., CEF programme, HORIZON programme, Innovation Fund), with the help of which companies can increase their innovation potential, reduce their energy intensity in production, undergo digital transformation, build new operations, and foster expansion and diversify production. PwC assists its clients to navigate the various legislative frameworks that cover these complex financial assistance schemes.
Zuzana Palkechová, Senior Manager, Investments and State Aid
Our team assisted a client with entering the Slovak market. The support was focused on state aid, i.e., preparing an application for regional investment aid, obtaining major investment status, and negotiating the conditions of the investment contract, including the cooperation agreement with the municipality and the city.
We advised the client on the implementation of the project, e.g., adjusting the parameters of the approved investment plan related to the conditions for creating new jobs and timely fulfilment of the minimum investment obligation. We also prepared mandatory monitoring reports for the client and communicated with the relevant Slovak authorities.
We helped our clients implement investment projects in a total amount of approx. EUR 2.336 billion, of which the approved investment aid totalled approx. EUR 408 million. More than 6,000 new jobs were created in Slovakia under these investment projects.
Effective sale, staying competitive in retail
Due to the popularity of social media, easy access to information, reviews and opinions, customers are increasingly well informed and ever more demanding. Car dealerships have to respond to this situation by exploring new areas to find and attract potential customers and by anticipating customers’ needs and providing them with personalised offers for products they are searching for.
Jens Hörning, Partner, Slovakia and CEE Automotive Leader
We were asked by a car dealer to improve sales efficiency and better target his marketing activities. Using internal company data, we started with a prediction of customer needs at every stage of the life cycle: marketing, purchase and aftersales. We also made use of a wide range of external geographical and demographic data sources that PwC collects, processes and analyses. We matched these data sources together to create an extensive database about customers and markets. As a result, we were able to advise our client, where their existing and potential clients are located, what is their driving pattern (how often, where and when they drive), where they shop, sizes and structure of company’s car fleets, etc.
After implementation of the program and management‘s refocused marketing strategy, the car dealer was able to increase the efficiency of its marketing campaigns by 20%, the frequency of client contact and visits by 15%, car sales by 5 – 10% and attraction of new clients by 5 – 10%.
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