Quote Chaos: Inside The Rising Pressure On Automotive Industry's RFQ Teams

17/11/2025 28 min Temporada 3 Episodio 96
Quote Chaos: Inside The Rising Pressure On Automotive Industry's RFQ Teams

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Episode Synopsis

At the heart of The Prophets’ vision are “The 24 Essential Supply Chain Processes.” What are they? Find out, and see the future yourself. Click here Quoting might sound like routine paperwork, but in today’s automotive supply chain, it’s becoming one of the biggest pressure points.Behind every new program sits an RFQ process that’s overworked, outdated, and dangerously dependent on a few people who know how to make it run.That’s where Ted Mabley, Director at UHY and co-author of a new white paper with the Center for Automotive Research (CAR), steps in. His study compares how suppliers manage RFQs today versus in 2002, and the numbers tell the story.The average supplier now handles approximately 800 RFQs per year, up from 495 two decades ago; yet, the tools and processes remain largely the same. Most companies are still managing quotes through emails, spreadsheets, and manual coordination, leaving room for costly errors and missed opportunities.Ted explains that while technology in other areas has advanced, the RFQ process is stuck. It relies heavily on “sticky knowledge,” the experience locked inside a handful of veterans who know which levers to pull and whom to call. As those experts retire, companies are left scrambling without proper succession or mentoring plans in place. The result is confusion, inconsistent data, and at times, quotes submitted with zero profit margins.Some suppliers are making progress by utilizing supplier relationship management tools to track and compare quotes; however, Ted notes that the gap between leaders and laggards remains wide. The bigger issue, he adds, is cultural. Siloed departments, poor communication, and a lack of accountability slow everything down.Ted believes the way forward starts with people, not technology. Building mentoring and training programs, or “farm clubs,” ensures new talent learns the process before stepping into key roles.From there, automation and AI can take on repetitive tasks, such as comparing supplier data, reconciling quotes with production performance, and even auditing PPAP documentation. But the key isn’t just automation; it’s connecting people, process, and systems so data actually works for the business.To fix the system, Ted recommends documenting every step of the RFQ process, identifying leaks and inefficiencies, and modernizing with lightweight digital tools that integrate existing data. He also calls on OEMs and suppliers to collaborate more closely, not just commercially, but to standardize and strengthen the systems that power their shared supply chain.The message is clear: the RFQ process might seem routine paperwork, but it’s the foundation of every program launch. How suppliers manage it will determine their ability to compete and deliver in an industry that’s moving faster than ever.Themes discussed in this episode:The growing complexity of the RFQ process and how it impacts supplier performance in automotive manufacturingHow the lack of automation and standard systems slows down the quoting process for suppliersThe problem of “sticky knowledge” and the risk of losing critical expertise as experienced employees retireWhy mentoring and structured training programs are essential to preserving quoting knowledge in the supply chainThe benefits of using supplier relationship management (SRM) tools to improve accuracy and speed in RFQ handlingHow siloed departments and disconnected systems cause costly errors in quote preparation and reviewThe need for suppliers to document, analyze, and streamline their end-to-end RFQ workflow for better resultsHow stronger collaboration between OEMs and suppliers can create a more consistent and efficient quoting process across the...

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