Practus: Driving transformative change in automotive sector through tailored solutions and innovative strategies

Ameya Waingankar, Partner – Performance Improvement at Practus, discusses with Rajesh Rajgor how Practus’ addresses key challenges including regulatory changes, electric vehicle adoption, sustainability, and cost-effective manufacturing through its tailored approach. Their proficiency aligns with the industry’s emphasis on connected vehicle technology, EV infrastructure, and efficient manufacturing. Offering personalized solutions in Process Optimization, Supply Chain Management, and Data Analytics, with a focus on sustainability, Practus integrates industry expertise and technology to empower clients in a dynamic environment.

How does Practus Performance Improvement service specifically cater to the needs of the automotive sector, and what kinds of challenges do they commonly address in this industry?

Practus’ Performance Improvement service is finely tuned to meet the distinctive requirements of the automotive sector. Despite global challenges, the Indian automotive industry maintains an impressive Compound Annual Growth Rate (CAGR) of 11.3% from 2020 to 2027, with consistent growth. Practus addresses critical challenges such as regulatory shifts, emissions compliance, fuel price volatility, electric vehicle adoption, competition, sustainability, and cost-efficient manufacturing.

The industry’s leadership in connected vehicle technology, electric vehicle infrastructure, and efficient manufacturing aligns seamlessly with Practus’ approach. Leveraging deep industry expertise and data-driven insights, we provide tailored solutions, prioritizing Process Optimization, Supply Chain Management, Quality Management, Procurement Transformation, Data Analytics, and Business Intelligence, all with a strong emphasis on sustainability. Our automotive-experienced team ensures solutions are in sync with industry dynamics. With a focus on technology integration, we help companies overcome digital challenges highlighted by COVID-19, encouraging IoT, AI, ML, and Digital Twins adoption for resilient supply chains. Furthermore, evolving preferences drive strategies rooted in data for enhanced digital engagement, personalization, and brand loyalty.

Please share some examples of successful transformations or business improvements that Practus has facilitated for automotive clients, and what impact did they have on the companies’ revenues, profits, and efficiencies?

At Practus, we’ve achieved impactful transformations within the automotive sector. For instance, our collaboration with company X led to a remarkable 15-20% increase in sales, achieving operational excellence and a 7% reduction in material costs through predictive analytics. This optimization resulted in a 10% reduction in lead times, a 14-day decrease in raw material inventory, and a 5% reduction in inventory costs. Similarly, company Y experienced exceptional gains in productivity during 2019-20, achieving up to 35%-time savings. Our focus on enhancing manufacturing processes resulted in a $250,000 release of working capital and a significant reduction in Days Sales Outstanding (DSO) within just three months.

At Practus, we offer a tailored suite of services designed exclusively for the automotive industry. Our range of offerings includes CFO management, Finance & Accounting Outsourcing, Cashflow & Profitability enhancement, M&A integration, Cost Optimization, and Process Efficiency improvement. Our expertise also extends to Tech Enablement, Business Strategy, Sales & Marketing, and Business Process Re-engineering, all aimed at driving growth and efficiency. We’re dedicated to providing strategic financial initiatives, optimizing ERP systems, and crafting comprehensive business plans that ensure long-term success for our clients in the automotive sector.

As an implementation services company, how does Practus ensure that the systems, processes, and resources align with the evolving goals of automotive companies, and what strategies do they employ to achieve this alignment?

At Practus, we ensure a seamless alignment between evolving goals of automotive companies and their systems, processes, and resources through a personalized strategy. Our approach includes maintaining open communication channels with leadership, crafting tailored transformation roadmaps grounded in the “People, Process & Systems” framework, utilizing Key Performance Indicators (KPIs) for clear tracking, employing Agile Methodology for adaptability, and nurturing a culture of continuous improvement. Our process begins with comprehending the unique DNA of the company, spotting transformation opportunities, and then creating and implementing bespoke solutions. We continuously monitor and adjust strategies to maintain alignment and drive progress. This orchestration results in a harmonious blend between strategic vision and execution, ensuring our clients achieve their goals effectively.

In the context of the automotive industry, how does Practus help clients estimate the financial requirements for ongoing operations, expansion goals, and manpower needs? Could you provide some insights into their approach and methodologies?

In the automotive industry, at Practus, we help clients estimate financial needs by employing a comprehensive approach. Benchmarking is integral, as it provides insights into their industry position and against peers, forming a solid collaboration foundation. Guided by our BOT (Build, Operate, Transfer) model philosophy, we co-build solutions with clients, ensuring effective operational implementation and knowledge transfer for long-term self-sufficiency. We are committed to delivering tangible ROI, consistently achieving returns from 3x to 12x throughout our transformation journeys. Our process begins with assessing the client’s financial status and goals, followed by detailed industry analysis and competition assessment to accurately quantify resources needed for expansion. We conduct a thorough workforce evaluation considering skills, labor costs, and recruitment strategies, resulting in precise financial estimations for ongoing operations, expansion goals, and future manpower needs in the automotive sector.

With the rise of e-commerce and changing business models in the automotive sector, how does Practus assist companies in adapting to these shifts and creating long-term prosperity through innovative strategies and value-added services?

At Practus, we strongly believe in an innovative approach that fuels transformative change within the automotive sector. Acting as a catalyst for organizations, we guide them through industry shifts, leveraging rigorous market research as a compass for growth. By synergizing traditional automotive strengths with cutting-edge digital capabilities, we empower our clients to not just adapt to but lead the digital revolution.

We prioritize seamless omnichannel integration, harmonizing online and offline experiences for immersive customer engagement. Financial insight plays a pivotal role, aligning funding with operational needs, while our expertise optimizes R&D efforts, embraces emerging tech, and secures market footholds. Whether navigating industry shifts, managing ongoing operations, or pioneering innovation, we stand as a steadfast partner, focusing on futureproofing through tech adoption, streamlined finance processes, data-driven decisions, and heightened profitability. Our philosophy revolves around merging the best of both worlds – traditional strengths with digital prowess – steering clients towards industry leadership.

Could you share Practus vision and mission as a global management consulting practice catering to the automotive sector, and how does the company differentiate itself from competitors in this domain?

At Practus, our global management consulting practice specializes in the automotive sector, driven by a vision to bring about transformative change through hands-on implementation. Our mission centers on creating a better world for our community, clients, and partners, exceeding traditional advisory services. Our unique approach is defined by a strong commitment to delivering measurable ROI, founded on meticulous diagnostics and our distinct outcome-based model. What truly sets us apart is our partnership-oriented mindset, valuing implementation over mere advice, and tackling the ever-evolving technological and operational challenges in the industry. Our vision is to empower the automotive sector with innovation, sustainability, and seamless technology integration, propelling the industry toward operational excellence, pioneering advancements, and enhanced customer experiences. Our mission involves collaboration with automotive companies, navigating complexities, and seizing opportunities through tailored strategies, comprehensive analysis, and hands-on execution. Our unwavering dedication lies in nurturing sustainable growth, profitability, and global leadership within the automotive landscape, achieved through inventive solutions and collaborative partnerships.

How does Practus generate revenue from its services in the automotive industry? Are there any unique or specialized pricing models that the company employs to ensure an outcome-based approach?

At Practus, we understand the dynamic nature of the automotive industry. Our adaptability is our strength, allowing us to customize our services precisely to each client’s needs. Our solutions are meticulously tailored to address their unique requirements, ensuring our impact is relevant and substantial.

We’re deeply invested in our clients’ success, which is why we follow a success fee linked model. Our fees are tied to measurable benefits from the transformations we facilitate. We track Return on Investment (ROI) through our proprietary models, providing upfront visibility on fees and expected outcomes. This showcases our commitment to being genuine partners, not just consultants. This strategic approach has expanded our client base and enhanced the value we offer in the market.

Can you provide an overview of Practus financial performance in the last fiscal year? How has the company’s revenue growth been in the automotive segment, and were there any notable achievements or milestones during this period?

Given that we are privately owned (we are backed by a leading family office), we would not be able to share these details. Our vision is to become a $1 billion company by 2030.

Looking ahead, what are Practus medium to long-term goals for its engagement with the automotive sector? Are there any specific expansion plans, partnerships, or innovative strategies the company aims to pursue in the coming years?

As we look ahead, Practus has set forth a comprehensive roadmap for our journey in the automotive sector. Our goals are ambitious yet realistic. We’re aiming to expand our presence by venturing into new markets, which will allow us to reach a wider array of clients and broaden our influence. One of our key strategies involves forging partnerships with industry leaders, pooling together our collective expertise to incubate innovative solutions that address the intricate challenges in the sector. Remaining technologically advanced is pivotal, and our commitment to continuous market research ensures we’re ahead of the curve in understanding technological shifts and trends, enabling us to guide clients effectively. We’re embracing Industry 4.0 technologies, such as IoT, AI, and predictive analytics, to not only streamline operations but also elevate customer experiences and facilitate well-informed decision-making. Sustainability is integral to our journey, and we’re focused on devising inventive strategies that align with eco-friendly practices and sustainable manufacturing processes. Additionally, we’re actively seeking partnerships to foster an ecosystem of innovation, collaborating with technology providers, academia, research institutions, and industry associations to co-create groundbreaking solutions.

Considering the dynamic nature of the automotive industry, how does Practus stay updated with the latest trends and developments, and how do they ensure their services remain relevant and impactful in addressing the evolving needs of automotive clients?

Navigating the dynamic automotive landscape requires us to be proactive in staying informed about the latest trends and developments. We’re vigilant watchers, constantly monitoring shifts such as technological advancements and market dynamics to anticipate potential impacts on our clients’ endeavors. Our interactions with clients are fundamental; we deeply engage to understand their unique challenges, goals, and aspirations. This understanding forms the bedrock for crafting solutions that are not only tailored but also designed to evolve as their needs change. We invest time in learning emerging technologies like electric vehicles and autonomous driving, positioning ourselves as a strategic navigator capable of guiding clients towards cutting-edge solutions. Our approach is marked by adaptability; we don’t merely create solutions for the present, but instead, design strategies that can flex and adapt to the industry’s ever-changing landscape. This commitment ensures our services remain impactful and aligned with the evolving demands of the automotive sector, as we continue to drive transformation.