
How procurement navigates margin pressure while enabling the software-defined future
The automotive industry is undergoing a fundamental transformation as vehicles become increasingly software-driven. Digital functionality, connectivity and user experience now influence purchasing decisions as much as traditional performance metrics.
At the same time, procurement teams must manage ongoing cost pressure, supply chain volatility and geopolitical uncertainty. This creates a dual mandate: securing today’s operations while enabling the technological foundations for future competitiveness.
Tech sourcing is at the center of this shift. It is no longer limited to sourcing components, but increasingly shapes technology architectures, supplier ecosystems and the scalability of digital innovation.
What can you take away from this article?
This article shows how automotive procurement is evolving into a strategic driver of software-defined vehicle architectures. You will learn:
- Why procurement must balance cost pressure with long-term technology strategy
- How software is becoming a key differentiator in automotive value creation
- What new sourcing approaches are required for software and digital platforms
- How supplier ecosystems and co-development models are evolving
- Why early involvement in architecture decisions is critical for future competitiveness
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In the automotive industry, procurement is evolving toward software and platform sourcing. The article highlights how sourcing decisions increasingly shape product architecture and future competitiveness.
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This article examines how telecom and media companies manage rising technology spend. It shows how sourcing becomes a key lever to balance innovation, efficiency and margin performance.
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Authors
Jan Mersmann
Principal
Jan Marwedel
Senior Project Manager
Jennifer Herman
Senior Consultant
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