How do automotive suppliers identify margin drift before it hits the P&L?
What is margin drift?
Margin drift is the gradual erosion of profitability caused by small execution variances that accumulate over time. Identifying it early requires comparing execution reality against quoted assumptions continuously.
How margin drift happens.
-
Define margin assumptions at quote
-
Monitor execution variances
-
Quantify impact in near real time
-
Escalate before financial close
Example of margin drift.
Premium freight becomes routine, not exceptional. Margin loss accumulates unnoticed.
Common mistakes automotive suppliers make.
-
Waiting for month-end
-
Reviewing variance without root cause
How Campfire solves this.
Campfire surfaces margin drift early by linking execution signals to financial outcomes, before losses are locked in.
#faq
Frequently asked questions.
Is margin drift inevitable?
No. It’s manageable with early visibility.