Case Study: How a German Auto Maker Reduced Harness Costs by 40%
In 2023, a major German automotive manufacturer faced rising costs and inefficiencies in its wire harness production. С 200 vehicle variants and increasing electrification, the complexity of harness designs had skyrocketed. The company initiated a cost-reduction program focusing on modularity, supplier optimization, and automation.
Challenges Identified:
Fragmented supplier base with inconsistent pricing
High labor costs in manual harness assembly
Delays due to lack of design standardization
Solutions Implemented:
Modular Harness Design: Engineers restructured the harness system into modular components, allowing reuse across different models.
Supplier Consolidation: The firm reduced its supplier base by 60%, negotiating better volume pricing with fewer, more strategic partners.
Nearshore Production: Labor-intensive tasks were shifted to Eastern Europe, cutting assembly costs by 25%.
Digital Twin Implementation: Using 3D modeling, errors were identified pre-production, saving on rework and material waste.
Results:
Total harness costs reduced by 40% over 18 months.
Lead times cut from 12 weeks to 7 weeks.
Quality defects dropped by 35%.
This case demonstrates the power of strategic sourcing, modular design, and smart manufacturing in managing the growing complexity of automotive wiring.