VOLVO 3P PURCHASING Presentation

VOLVO 3P PURCHASING
Lars Himmer &
Thomas Motéus
Vision
To be valued as the world´s leading provider
of commercial transport solutions.
Wanted positions in each of our businesses:
• Number 1 in image and customer satisfaction
• Sustainable profitability above average
• Number 1 or 2 in size or superior growth rate
Volvo 3P
Purchasing
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Corporate Values
Quality
Safety
Environment
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Purchasing
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Global positions
Marine engines
Trucks
2
1
in Europe
Buses
2
Construction Equipment
3
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Purchasing
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Heavy duty diesel engines
1
Aerospace components
Leading
independent
provider
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Kaluga Plant
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Purchasing
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Volvo Trucks – no 1 in Russia
• 1st foreign truck registered in Russia: 1973
• 1st in geographical coverage of sales and service in Russia: 39
• 1st in imported brand for 11 consecutive years in Russia
• 1st in population of foreign trucks in Russia: +50.000
• 1st in leasing portfolio for commercial vehicles
• 1st in complete transport solutions
• 1st in CKD manufacturing of foreign trucks in Russia: 2003
• 1st in automotive factory construction time
• 1st in large-scale CBU manufacturing of foreign trucks in Russia
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Purchasing
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Kaluga Production Capacity
• Volvo Truck
• Renault Trucks
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Purchasing
10 000 Trucks
5 000 Trucks
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Products
Volvo Trucks
FH
FM
FE/FL
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Purchasing
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Products
Renault Trucks
Premium
Kreax
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Purchasing
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Examples of current suppliers
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Purchasing
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From CKD to CBU…
• In the spring of 2009 we went from CKD to
CBU production in Kaluga, today production is
similar in processes to our other European
factories in Gothenburg, Ghent, Burge-enBresse and Blainville
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Purchasing
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Organisation
AB Volvo
Business Areas
Mack
Trucks
Renault
Trucks
Volvo
Trucks
Nissan
Diesel
Buses
Construction
Equipment
Volvo
Penta
Volvo
Aero
Business Units
Volvo 3P
Volvo Powertrain
Volvo Parts
Volvo Logistics
Volvo Information Technology & Others
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Purchasing
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Financial
Services
Volvo 3P
A Business Unit within the Volvo Group
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Purchasing
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Volvo 3P Mission
"To propose and develop profitable products
to ensure a strong competitive offer for each
truck company based on common vehicle
architecture and shared technology"
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Purchasing
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Volvo 3P Purchasing
SPEND
VEHICLE
DYNAMIC
PEOPLE
CAB
34%
ELECTRICAL
3%CHASSIS
Total = 5600 M€
Volvo 3P
Purchasing
Total : 591 people
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Global and Regional Strengths
Production - Heavy Duty/Medium Duty Trucks
Europe
North America
Japan
India
South America
Australia
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Purchasing strategy
Strongly support the Trucks Brands' growth objectives
Focus on supplier performance
More Business with less suppliers
Build strong relationships with world class suppliers
Drive Efficiency to Operational Excellence
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Purchasing
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Mission
Provide a competitive advantage to the
Brands by selecting, developing, and
managing premium suppliers to deliver at the
best possible QDCF values to our customers.
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Purchasing
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Sourcing Strategy - Russia
• Focus on few = Big Business scope
• Strategic suppliers
• Develop business together
• Long term business relationship
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Global Sourcing Process
1
2
1
2
Segment Strategy
3
3
4
5
4
6
PSL
7
8
Supplier choice
Validation by Decision Fora
RFI
Data
Supplier
List
RFQ
SEM
Nego
Supplier
Choice
SSEM
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Sourcing strategy approach
Step 3 – Investigate export opportunities
Step 2 – Focus on raw material cost, global impact + Russian access
Step 1 – Focus on logistic cost opportunity
Time
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Purchasing
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What components are we targeting for
local sourcing…
• Step 1
• Step 2 ctn
– Frame rails
– Cables
– Batteries
– Brackets
– Leaf Springs
– X members
– Complete Wheels
– Electrical Parts
– Fuel tanks
– Steering Gear
– Air tanks
– V-stays, rods
– Muffler
– Windshield
– Bunks
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Purchasing
• Step 2 ctn
– Seats
– Mirrors
– Air Deflectors
– Plastic parts
– Radio/CD
– Mats, Panels
– Paint shops
– Small Parts
– Other
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Timeplan Supplier Selection
* Selected Suppliers
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Head of Purchasing Volvo 3P
B. Blin
Organisation
Cab
P.Lundblad
Europe
J. Klingberg
North
America
P. Besson
Human Resources
F.De Surrel
Management
Coordination
JP.Kretz
Electrical
B. Morin
Chassis
N.Hamnstedt
Assistant
MC.Duval
Vehicle
Dynamics
J. Marchner
Supplier
Quality
Departmt.
P.Lepromt
Global
Purchasing
Devlpt
JM.Lanne
Finance &
Business
Control
L.Lugo
Lyon
E.Chapoulaud
Gothenburg
J.Klingberg
Allentown
J.Alfier
Australia
P.Besson
Greensboro
P.Besson
South
America
V. Bareto
Ageo
H.Rieck
International
D.Mackinovski
Turkey &
Russia
P.Mårtensson
Bangalore
R.Colaco
Shanghai
S.Di
Bartolomeo
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Volvo 3P
Contact details to Thomas Motéus,
Project Buyer Russia
+46 31 3221884
[email protected]
www.volvo.com/suppliers
Address:
Volvo 3P
International Purchasing, Dept. 28051, AB4N
405 08 Gothenburg, Sweden
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Purchasing
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Thank You !
Спасибо!