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In this episode, we get real about a topic that doesn’t get nearly enough attention in automotive: the strain on supplier relationships. With tariffs, lead time cuts, and constant disruptions, the old “just send the RFQ and hope for the best” approach simply doesn’t hold up anymore.

That's where Supplier Relationship Management (SRM) comes in—and not just as a tool. We're talking about SRM as part of the procurement strategy.

Our guest, Achim Gatternig, Senior Manager for Procurement Projects at Magna, knows exactly what that looks like. He walks us through how Magna approaches Supplier Relationship Management (SRM) in a way that's built for today's supply chain challenges — and tomorrow's.

And it all starts early. Before the first quote request goes out, Magna teams are already narrowing down a fit-for-purpose list of suppliers. They're not just matching parts but aligning capabilities, volumes, and timelines to strategy. The goal? Fewer surprises, better results, and stronger long-term relationships.

But it's not just about smart planning—it's about real-time visibility. Achim shares how Magna gives suppliers monthly scorecards tracking quality, logistics, and delivery accuracy. It's not about policing—it's about creating conversations based on facts, not feelings.

And when crisis hits? That data becomes gold. Whether it's a tariff shift or a plant fire, SRM gives procurement leaders the clarity they need to act fast. Achim walks us through possible scenarios of how the right information at the right time could help companies avoid cost hits, move tooling, and re-strategize without chaos.

Of course, not everyone's on board. Achim gets candid about the challenges of pitching SRM to skeptical execs. His take? Show them what it costs to make decisions in the dark and then what's possible when you don't.

From pushing ESG requirements down the chain to spotting supplier risk with external data to using AI to manage information no human team could handle alone—Achim shows us what modern procurement leadership really looks like.

And his advice for anyone thinking about SRM? Don't overthink it. Just start. Pick the right system, make it fit your world, and give your team the clarity they'll need for whatever comes next.

Themes discussed in this episode:

• Why supplier relationship management is the hidden driver of procurement strategy
• How Magna leverages SRM to reduce risk and improve sourcing decisions
• Why SRM is no longer optional in automotive procurement
• How SRM tools help teams respond faster during supply chain disruptions
• Why early supplier alignment is more valuable than late-stage negotiation
• The real cost of not having supplier data when a crisis hit
• The need for a single, shared view of supplier data across teams

Featured on this episode:

Name: Achim Gatternig

Title: Senior Manager of Procurement at Magna International

About: Achim is Senior Manager of Procurement at Magna International, leading global procurement teams for complete vehicle manufacturing projects. With over 18 years at Magna, he’s held several key roles across the supply chain and procurement space, including Global Strategic Commodity Manager and Head of Tools and Data Management. Today, he oversees both project-based procurement teams and system administration for critical SCM applications like SRM. Achim is passionate about enabling supply chain teams to succeed—by guiding them strategically and equipping them with streamlined processes and smart systems that drive real results.

Connect: LinkedIn

Mentioned in this episode:

• Inside Magna’s Strategy: Winning Business Through Early Customer Collaboration
• What is Supplier Relationship Management?

Episode Highlights:

[02:46] Start Early: Before an RFQ ever goes out, Magna builds a tailored list of suppliers based on volume, product type, and project goals—because the right sourcing decision starts way earlier than most think.

[06:00] Scorecards, Not Surprises: With monthly feedback and shared data, Magna’s SRM system turns supplier performance into a two-way street—and a platform for long-term growth.

[07:46] The SRM Sell to the C-Suite: When executives say “we’re fine,” data-driven decision-making is your best argument—especially when bad calls cost real money.

[10:43] When Tariffs Hit, SRM Talks: With location data, cost breakdowns, and sourcing visibility in one place, SRM helps Magna make fast, informed moves—like relocating tools before tariffs bite.

[12:45] Data Doesn’t Lie: Magna’s SRM-linked scorecards give suppliers a clear view of their performance trends—so they can spot issues early and make smarter moves.

[14:27] One Supplier, Three Scorecards: With data flowing from plant floors to corporate, Magna turns scattered supplier feedback into a single, unified view that works at every level.

[16:25] What Keeps Procurement Execs Up at Night: From cost targets to crisis signals, SRM gives leaders the tools to control spending, manage risk, and avoid nasty surprises before they turn red.

[19:09] When Yellow Turns to Red: Magna’s “Top Focus” process uses real-time data to catch slipping suppliers early—and gives them a path back before red turns into regret.

[22:38] How Far Down Can You See? Magna’s not stopping at tier one—external data and AI are helping them trace ESG compliance deeper into the supply chain, where visibility gets tough.

[24:46] No Way Around It: Achim’s advice is clear: if you want to stay competitive, stop hesitating and invest in SRM—because guessing won’t cut it in a world that changes overnight.

Top Quotes:

[04:14] Achim: “It’s always important that you somehow create your target scenario for the best-fitting supplier at the very beginning. That you really build a bidders list that is fitting to all of those requirements that have been identified. This is a very early-stage decision that you make with your collaborative teams. And from that time on, you try to bring in, as we said, suppliers that fit the strategy sheet to the project and to the product because we really think that this is a way of getting a very effective and very professional sourcing process into the activity. And with that, we can create very competitive and stable sourcing decisions at the end of the day, which is for sure one of the major tasks in procurement.”

[10:07] Achim: “An SRM helps you to save money based on how you get out the best, the better products, prices, and quality because you better understand the product and you better understand your supplier from the very beginning. On the other hand, as I've said, you can lose a lot of money if you are not at the forehand of whatever is going on in the market because time is key. And if you are too late with your decisions, the opportunity that was out there yesterday might be gone today. So, I think it's time and transparency in the market, in the suppliers, in the products that SRMs can give you, and you should take that as a manager.”

[22:15] Achim: “It's not a one-player game, right? So, you have to be in a team approach, for sure. For some topics, you are in the lead, but at the end of the day, you will only be successful when all of the team members are playing the same game. And they all need, somehow, the same source of truth that you can work on — because otherwise, you run in different directions, and nobody knows why. So, a single source of truth is a good thing to have in this case.”

[23:55] Achim: “We made an analysis on how big we understand that Magna has thousands of tier-one suppliers or first-level suppliers. Regardless of what level you are, if you bring this down, there are hundreds of thousands of involved players if you go down to a very low level. So, you have to use efficient methods to be able to track those. And, I said, there are sources that can help you with that. AI is playing a very important role these days in getting this data collected because there are ways to get the data collected and make and build up those elements. Manually only? I would hardly think it's manageable in a reasonable time with a reasonable amount.”

[25:13] Achim: “If you are really not sure if you should go for an SRM system or not, I can only tell you — it's a must to go this way if you want to be successful in the future. I think there's no way around it.”