FOR TIER 2 AND TIER 3 AUTO SUPPLIERS
Supplying OEMs and Tier 1s means detailed cost breakups, monthly schedules that keep changing and price-down requests every year. Kojo builds each quote from your own rates, then keeps production, material and payments on the same records, so the numbers behind every part number are in one place.
HOW THE WORK IS PRICED
Automotive RFQs come with a drawing, an annual volume and often a target price, and most Tier 1s want the quote in their own cost breakup: raw material (gross weight, net weight and scrap credit), process cost per operation, overheads, rejection allowance, profit, packing and freight, with tooling and fixtures shown separately or amortised over volume. The buyer will challenge every line in negotiation, so each one has to come from a rate you can explain.
The price then holds for years. Raw material is usually revised against an agreed index and period, but process cost is expected to come down, and annual price-down requests are common. The traps: quoting on a peak volume that never arrives, so setups and fixtures are spread over fewer parts than planned; forgetting gauges, PPAP samples and inspection time; letting a raw material revision lapse; and accepting rejection debit notes that wipe out the margin on a month's supply.
THE HEADACHES
Buyers question gross weight, cycle time, overhead and rejection allowance one by one. If the numbers came from a one-off spreadsheet, they are hard to defend across the table.
Monthly schedules are revised mid-month and urgent call-offs jump the queue. Machines get double-booked and other customers' deliveries slip.
When steel or aluminium moves, the part price should follow under the agreed revision terms. Without today's material cost per part to hand, claims go in late or not at all.
Large customers pay on long terms and deduct rejections through debit notes. Without a clear ageing view, overdue amounts sit for months.
THE WORKFLOW
The RFQ arrives with drawing, annual volume, target price and the customer's cost breakup format. Review feasibility, special characteristics and the gauges or fixtures the part will need.
Build raw material, process cost per operation, overheads, rejection, profit, packing, freight and tooling into the customer's format. Submit and negotiate.
On nomination, make samples and prepare the PPAP submission at the level the customer asks for. That usually means dimensional results, material certificates, control plan, PFMEA and capability studies.
Receive monthly schedules and their revisions. Plan raw material against them and load parts onto machines.
Run to the control plan and record output, rejects and downtime each shift. Handle customer rejections and line complaints as they come.
Dispatch against the schedule in the agreed packaging and invoice. Reconcile debit notes and follow up payments by due date.
WHERE KOJO FITS
COMMERCIAL
LIVEPick the customer and part, and Kojo fills material, machining, setup, overhead and margin from your own rates, so every line traces back to a rate. The PDF follows quote templates set up for you during onboarding.
Explore module →COMMERCIAL
LIVEApplies your senior estimator's cycle times per operation, machine hour rates and setup allowances the same way on every RFQ. When a buyer challenges the process cost, the basis is clear.
Explore module →OPERATIONS
ROLLING OUTDefine each part's bill of materials once and see its true cost at today's material price. When steel moves, you see the effect per part before raising a revision with the customer.
Explore module →OPERATIONS
ROLLING OUTDrag orders onto machines on a visual plan. When a revised schedule or urgent call-off arrives, clashes show up before they happen.
Explore module →OPERATIONS
ROLLING OUTOperators log production, rejects, downtime and raw material each shift on a tablet. Rejects and lost hours are recorded as they happen, not pieced together at month end.
Explore module →COMMERCIAL
ROLLING OUTReminders go out before and after each due date on WhatsApp, email and SMS. Receivables ageing shows which customers are drifting past their terms.
Explore module →STARTER TO ENTERPRISE
Start with quoting, add production, inventory and payments, then scale across plants with integrations and a dedicated support team.
STARTER
A Tier 3 machining unit supplying one or two Tier 1s. Start with the quote engine and machining estimator, so every RFQ is costed on the same rates.
GROWTH
A Tier 2 supplier on monthly schedules from several customers. Add shop-floor logging, BOM costing, inventory and payment reminders to keep output, material and collections in step.
ENTERPRISE
Several plants serving different OEM clusters. Multi-site roll-up reporting, an open API for your accounting or ERP system, and a dedicated support team with an uptime SLA.
NUMBERS TO WATCH
SCHEDULE ADHERENCE
Tier 1s rate suppliers on delivering the scheduled quantity on time, and the rating shapes future business.CUSTOMER REJECTIONS IN PPM
Most automotive customers measure rejects in parts per million, and each one also brings a debit note.MACHINE UTILISATION
The process cost in your quote assumed a level of utilisation, and if it falls the part costs more than you priced.RECEIVABLES BY AGE
Long credit terms and debit notes tie up working capital, and ageing shows which customers are slipping.COMMON MATERIALS
Each material page has properties, equivalent grades and a free weight and machining cost calculator.
QUESTIONS
No. Kojo is not a PPAP or quality documentation system. It covers the commercial and production side of the part: quoting, costing, scheduling, shift records, inventory and payments.
Kiviro sets up your quote templates during onboarding, along with your machines, rates and margins. The quote engine fills material, machining, setup, overhead and margin from those rates, so each line has a basis you can show the buyer.
Yes, on the Enterprise plan. It adds multi-plant roll-up reporting, an open API for accounting and ERP systems, and a dedicated support team with an uptime SLA.
Book a free 30-minute visit. We'll run one of your real jobs through Kojo on the spot. Outside India? We'll do it on a video call.
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