Major auto suppliers are successful in winning new business only 25% of the time, and if this rate is improved by 5%, they could gain close to $700 million in revenue.
The study, "Automotive Suppliers and the Revenue Acquisition Process: What's Working and What's Not?," also shows that 24% of large suppliers miss submission deadlines for request for quotes (RFQs), costing them an estimated $3.5 billion annually in lost sales opportunities. According to the commissioned study by Salion Inc., smaller suppliers lose an estimated $194 million annually.
Other findings from the study include:
- Large suppliers spend an average of $11 million a year preparing new business RFQs, while smaller suppliers spend $6.1 million
- Average revenue per new business RFQ for large suppliers is $73.8 million and $3.0 million for small suppliers
- Nearly half of the respondents have less than 75% confidence that their companies will reach their revenue and margin goals.