Where automotive logistics and automotive IT come together

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1 International Conference & Exhibition 19/20 May 2014 Lyon France Event Sponsored by:

2 Monday 19 May Morning Room Brasilia/Caracas Visits (if booked) Renault Trucks Factory Lyon City Tour Delegates Registration/Lunch Welcome Volvo Cars: Operating in China: Building a supply structure to serve a new assembly plant Mecaplast: Supply Chain Management in China: The Tier1 experience CEDEX: B2B integration of local suppliers in China Break for session change over Renault: Managing supply chain risk using Odette recommendations finding the weakest link! Ford Otosan: MP&L's role in collaborative supplier capacity management Welcome Room Mexico SINTEF: The Internet of Things and the Connected Vehicle ic Consult: API Security as Business Enabler at BMW Group IBM: A pragmatic Big Data approach through the connected car Hella/Michelin/ZF: Worldwide re-organisations: Managing the complexities of global virtual teams Networking break/visit to the Exhibition Plenary Session Michel Brun - Vice President, Logistics - Volvo Global Trucks Operations John Sobeck - Vice President, Supply Chain Management - ZF Group Mark Sutcliffe - Alliance Global VP, Supply Chain Management- Renault Group Cocktail in the Exhibition Bus transfer Networking evening Offered by

3 Tuesday 20 May Room Brasilia/Caracas Room Mexico Room Lima Welcome back VW: New logistics concepts drive the move from VDA to EDIFACT message standards MHP: Supercharge EDI: How to benefit from next generation ecollaboration Volvo IT: Making Volvo EDI big in Japan Mexican SC Association: Supply chain clustering in Mexico's automotive industry Magna: Long distance supply chain from Mexico to Russia: Avoiding the potholes PSA: Facing up to new sourcing challenges: the road from China to Russia PSA/Robert Bosch/VDA: Harmonisation of einvoicing practices in Europe Networking break/visit to the Exhibition Plenary Session Bruno Grison - Vice President, Supplier Quality & Development - PSA Peugeot Citroen Pascal Born - Global Business Development Director - Neovia Bernard Million-Rousseau - CEO - Platforme de la Filière Automobile (PFA) Networking lunch/visit to the Exhibition Robert Bosch/VW/MHP: RFID: Streamlining product and supply networks by digitalisation of physical flows Fraunhofer/HellermanTyton/Meridion/PSA/ Scania/VW: Reliable demand forecasts become a reality Rotas/BDC/CETIM/FFF: Successful autogration of SMEs Break for session change over Odette/AIAG/Continental: Global MMOG/LE: Can Version 4 meet the latest industry needs? ADEME/Ewals Cargo/Ford/Renault: Aligning your green logistics to internal and external constraints End programme Buses to airport

4 Monday 19 May Building supply chains in emerging markets Operating in China: Building a supply structure to serve a new assembly plant Eric RISTENSTRAND Manager VCC Packaging Operation Volvo Car Group Eric SANDGREN Project Manager Volvo Car Group Volvo Car Corporation recently established a new assembly plant in Chengdu in Sichuan province in Southwest China. This meant taking on many new suppliers and LSPs and implementing a raft of Odette logistics tools, including EDI, bar-code labelling and Global MMOG/LE, which was used to carry out logistics capability assessments of local suppliers according to VCC requirements. This session will focus on the critical success factors involved in setting up a new MP&L organisation capable of building robust logistics relationships between the plant, the suppliers and the LSPs. Supply chain management in China: The Tier1 experience Philippe CRUAU, Industrial Director Group, Mecaplast Although European vehicle makers operating in China have their own SCM difficulties, the situation for European Tier1s appears to be doubly difficult. Companies such as Mecaplast not only have to rely on an upstream supply chain made up of mainly local suppliers but also need to satisfy the diverse requirements of downstream customers such as BMW, GM and PSA, as well as local manufacturers such as SAIC. Dealing with different customers in Europe is made easier by their general embrace of Odette and other standards but the situation in China could be more easily described as the wild west or, rather, the wild east. Mr Cruau makes an impassioned plea for European vehicle makers to work together in China to bring some strategic vision to their supply operations in areas such as EDI, packaging, labelling, and transport, in order to establish a supply chain that is fit for purpose. B2B integration of local suppliers in China Mingguang CHENG, CEO, CEDEX Local suppliers in China who supply parts to European OEMs and Tier 1s have a choice of several different solutions to become integrated in the B2B systems of their customers. Ease of use and low cost are the obvious criteria when selecting an appropriate solution but it is clear that cloud computing has become a key driver for the consolidation of B2B platforms. Mr Cheng will give an update on the latest status of B2B integration in China, examine the problems that B2B integration poses for local suppliers and make recommendations on the best way to overcome these problems.

5 Monday 19 May The Internet of Things The Internet of Things and the connected vehicle Ovidiu VERMESAN, Chief Scientist, SINTEF The move towards unmanned robotic vehicles connected to new Internet of Things applications becomes a reality. The vehicles are using 4G to provide better data flow, linking to smart phones to provide information, while laser-toting vehicles offer real-world self-drive. Beyond that there is a wider world of information services, navigation and content and connections with other vehicles and infrastructure that are integrated into future IoT ecosystems. These connections and exchange of information concerning vehicle movements and usage will help improve vehicle care, security and overall functionality. Organizations such as the Open Automotive Alliance are working to create standards for mobile devices and software to work with in-vehicle systems from different OEMs that will enable the implementation of IoT applications. API Security as Business Enabler at BMW Group: Real world use cases from the automotive sector Sebastian MENNICKE, Senior Consultant, ic Consult The move to the connected vehicle is already in full swing with all major automotive OEMs offering systems that connect vehicles to the Internet. And the BMW i series is already on the road proving this evolution. The market opportunity has the potential to be huge: according to research firm SBD and the GSMA, the global connected car industry will be worth 39 billion in 2018, up from 13 billion in In order for manufacturers to truly cash in, they need to consider the potential challenges that arise from this new era of vehicle mobility. Automakers need to look at the next generation security and integration technologies so they can control exactly who has access to the vehicle. The key to this is API Management. APIs are what connect the apps in connected vehicles to the services which they depend on. Therefore, there is a need to manage and govern the APIs that enable collaboration between a vehicle and an app, such as the registration of developers and apps, API key distribution and revocation, and API version management. Sebastian Mennicke, Senior Consultant at leading Identity & Access Management Consultancy ic Consult, shows how the Axway API Server can help to integrate mobile apps with backend APIs by the example of the BMW i series project. What you will learn: Real world best practice use cases for integrating mobile apps on the car with enterprise data systems How an efficient API management strategy is fundamental to securing flow of data across a network of connected cars How to control the access to and from your car in the emerging Internet of Things A pragmatic Big Data approach through the connected car: The IBM M2M solution for the automotive industry Serge BONNAUD, Software Architect, Industrial Sector, IBM Maintaining communication links with vehicles after they leave the shopfloor is critical for car manufacturers. Typical needs include monitoring equipment state and functions (on-board diagnostics), data uplinks (for systems upgrades, product recalls, etc.), or GPS tracking for security purposes. Another recent challenge for car manufacturers is to integrate value brought by real-time data processing from connected vehicles. Automobiles today offer millions of sources of key information. Collection and processing of this data help car manufacturers provide a wide range of connected services to their dealer clients, allowing them to use numerous channels such as websites, vehicle data, customer service and mobile applications. This session will feature demonstrations covering use cases related to emergency area management, car incident management and car fleet management.

6 Monday 19 May Eliminating the fear of failure Managing supply chain risk using Odette recommendations finding the weakest link! Thierry KOSCIELNIAK, Deputy GM, Engineering of International Parts Flows, Renault Chairman, Logistics Committee, Odette International Supply chain risk management involves the implementation of strategies to manage both every day risks and exceptional risks. It relies on continuous risk assessment of the whole supply chain with the objective of reducing vulnerability and ensuring continuity. How to manage Supply Chain Risk in a global context? Odette with the support of OEM s such as PSA, Renault, Volvo Group and VW Audi has defined some best practices which benefit the whole automotive industry. A typical example is the Odette supply chain risk management matrix which allows companies to summarise the various types of risk, the impact of failure and the preferred methods of proactively measuring risk and then reactively managing risk if a failure occurs. What are Supply Chain Risks? How can Supply Chain Risks be anticipated? Which kind of countermeasure can be applied to avoid the different types of Supply Chain Risk? MP&L's role in collaborative supplier capacity management Beysun SEN DURU, Supervisor, Supplier Management & Development, Ford Otosan Chairman, Odette Committee, Turkish Automotive Manufacturers Association (OSD) One of the best ways to guarantee on-time delivery is to ensure that suppliers have adequate capacity and capability processes in place to manage their customer requirements. Leading organizations which manage their supplier capacity efficiently have the advantage of being more reactive to changes and opportunities in the competitive global market. This session will focus on how the Ford Otosan supplier development philosophy, and partnership approach, supports and delivers effective, efficient and reliable supplier capacity management and requirement fulfilment. The importance of the MP&L role in the collaborative supplier capacity management process. Insight into Ford Otosan best practice methods to minimize the effect of demand fluctuation on supplier capacity and capability. Ideas on how to develop and improve the supplier capacity management process from an MP&L perspective Discussion Forum Worldwide re-organisations: Managing the complexities of global virtual teams Sandra AHJMAJER Senior Manager Portal Management ZF Jean-Luc FAYE IS Functional Manager, B2B & EDI Expert Michelin Udo THIENELT Information Competence Centre Manager Hella The drive towards global supply operations has inevitably resulted in an increasing need for supply-chain related business functions to be carried out in both networked and virtual environments across the world. Setting up such environments is, however, fraught with difficulties, such as how to get all those involved to buy in to the change and how to deal with the often underestimated cultural differences between teams in different countries and continents. However, advice is on hand and the speakers will explain how to identify and correct some surprisingly poor practices. Back to basics should be your watchword! The audience will gain from this session: The pros and cons of establishing virtual global teams and the potential pitfalls to avoid How to reorganise your teams to best meet customers expectations in a global context Which tools are available to help you How to manage virtual global teams on a day to day basis

7 Monday 19 May Plenary Session Michel Brun John Sobeck Mark Sutcliffe Vice President, Logistics Volvo Global Trucks Operations Vice President, Supply Chain Management ZF Group Alliance Global VP, Supply Chain Management Renault Group Odette2014: Meeting the challenges of tomorrow s global supply chain

8 Tuesday 20 May Ensuring IT infrastructures are up to the challenge New logistics concepts drive the move from VDA to EDIFACT message standards Thomas SIECK, Manager EDI / System Integration - IT Inbound Logistics, Volkswagen For more than 30 years the flat file based VDA recommendations for data exchange have dominated the German automotive industry and its supply chain. But the rise in importance of emerging markets, growing international operations and the increasing refinement of production processes over recent years have been the driver for the development of new logistics concepts which, in turn, have brought new requirements for data exchange between manufacturers, suppliers and logistics service providers. Under the lead of the VDA Communication and IT committee (KIT), Supply Chain experts continue to develop a comprehensive set of EDIFACT based guidelines for the latest order and delivery processes. Thomas Sieck (Volkswagen), the chairman of KIT, reports on progress of the projects, implementation in key areas of the German automotive industry and future plans to complete the transition to the latest EDIFACT standards. Supercharge EDI: How to benefit from next generation ecollaboration Ralf BARAL Associated Partner MHP - A Porsche Company Stefan WESTHAEUSSER Manager MHP - A Porsche Company For a long time, EDI was mainly a technological issue; documents needed to be exchanged reliably with business partners and nothing more. Nowadays, it becomes a management issue. Anyone who succeeds in setting up EDI holistically can create further added value. Learn how to release the hidden potential in ecollaboration through professional monitoring of business processes and effective use of KPIs. Become more efficient in managing resources in your EDI-department and keep your EDI governance in shape for the future. Not just the transmission, but the entire process must be completely depicted by IT. The intelligent combination of new applications makes all this possible. Making Volvo EDI big in Japan Lars CEDERHOLM, Senior Business Analyst, EDI & B2B, Volvo IT Following the purchase of Nissan Diesel in 2007, Volvo Group embarked on the implementation of Volvo EDI standards in their new acquisition, now operating under the brand name UD Trucks. Although Volvo EDI is based on the Edifact Message Implementation Guidelines developed by the Joint Automotive Industry Forum, which includes JAMA and JAPIA, there were still a number of challenges to be overcome. Mr Cederholm will explain how Volvo faced up to a variety of legacy systems and specific Japanese supply concepts such as Trust and Shikyu, while taking account of significant cultural differences between East and West.

9 Tuesday 20 May On the road to logistics optimisation Supply chain clustering in Mexico's automotive industry Dr. Miguel Gastón CEDILLO-CAMPOS, President, Mexican Logistics & Supply Chain Association Senior Researcher, Mexican Institute of Transportation Members of automotive value networks face increasing competition that forces them to establish enhanced coordination modalities such as supply chain clustering. While industrial clustering is a well-known approach in economic theory as a factor promoting transactional effectiveness, the spatial and functional framework of clustering in logistics is not so well understood. Thus, one of the main drivers behind successful supply chain operations in emerging markets is the ability to dynamically design, organise and manage global-local supply chain clustering along the freight corridors to maximize performance. Because of the impact of the local industrial environment on supply chain performance, a global approach capable of including local advantages from production site locations is critical. This session examines the main issues for taking advantage of the local supply-base in order to integrate improved global automotive supply chains. From a systems framework, it analyses the new organisational patterns in the Mexican automotive industry value chain, particularly the dynamic evolution of the industrial environment, towards greater logistical interdependency between automotive actors. The results were obtained from an applied-research project developed in partnership with assemblers, suppliers and local authorities. They provide information to improve the dynamic competitive advantages of international automotive companies located in Mexico in order to provide greatest local value at a global level. Long distance supply chain from Mexico to Russia: Avoiding the potholes Karl LUKAS, Head of Supply Chain Design & Logistics Services, Magna Logistics This session deals with the management of complex logistics structures in global networks where the principal actors are located in different countries throughout the world. Mr Lukas will draw on the experience of managing multiple volume flows from North America and Asia to Russia which involves coping with different cultures, people and interfaces where using the same language doesn t necessarily lead to the same understanding. He will stress the importance of carrying out Supply Chain Engineering at both a high level and a low level simultaneously and keeping it simple, in terms of both processes and systems. Another major success factor has been the bringing together of all the involved players, including holding on-site workshops with both suppliers and carriers. Facing up to new sourcing challenges: the road from China to Russia Gilles THOLLOT, International Supply Chain Expert, PSA Peugeot Citroёn China is a major development zone for PSA Peugeot Citroen and will probably become even more so with the recent ownership stake taken by Dongfeng Motor. Manufacturing operations in China provide PSA with the opportunity to export components to their production sites in other emerging markets, using the Russia case study as a model. Mr Thollot will explain how PSA are coping with extended lead times between China and Russia while minimizing logistics costs and cash burn.

10 Tuesday 20 May Discussion Forum Harmonisation of einvoicing practices in Europe; einvoicing outside the EU and the archiving challenges Antonio CONTE DG Enterprise and Industry, EC Peggy JOUANNE Project Manager, Accounts PSA Peugeot Citroёn Andrea PADOVANI Project Manager Robert Bosch Joerg WALTHER Programme Manager EDI and ebusiness VDA Structured electronic invoicing using EDI is well established in the European automotive supply chain but different implementations of legislation in the various EU member states create barriers to an even wider use. EC directive 2010/45 aims at a further harmonisation and lowering of barriers for e-invoicing within and across the EU member states. By 2013 every member state had to incorporate the directive into national legislation and by the end of 2013 most countries had also issued further administrative documents as guidance to the updated e-invoicing processes. An expert team of the Odette community has analysed the current situation and will present the results of this analysis. The analysis will show that although the legislation for e-invoicing itself has been improved and harmonised, there remain significant differences in the archiving requirements of the different member states. These differences again jeopardise the broader use of e-invoicing Plenary Session Bruno Grison Pascal Born Bernard Million- Rousseau Vice President, Supplier Quality & Development PSA Peugeot Citroёn Global Business Development Director Neovia CEO Platforme de la Filière Automobile (PFA) Odette2014:

11 Tuesday 20 May Re-engineering supply chain processes RFID: Streamlining product and supply networks by digitalisation of physical flows Thomas GRABSCHEIT MHP A Porsche Company Malte SCHMIDT Central Supervision and Logistics Volkswagen Jens VIALKOWITSCH Business Processes Support Robert Bosch Radio Frequency Identification (RFID) is rapidly gaining importance in automotive production and logistics. In this session Volkswagen AG, Robert Bosch GmbH and MHP a Porsche Company present successful RFID projects and demonstrate the potential of RFID to improve current and future process design and information exchange in the automotive industry. This includes topics such as the Tracking & Tracing of Prototype Parts in the Vehicle Development Process, related Vehicle and Test Bench Management and Event-Driven Data Exchange and Process Virtualization in Cross-Company Environments Discussion Forum Reliable demand forecasts become a reality Johan BYSTEDT Logistics and SC Consultant Meridion Victor DANIEL Process Owner Material Control Scania Pierre GABAUD Inbound SC Expert PSA Peugeot Citroёn Thor KOEHLER EMEA Inventory Manager HellermannTyton Sten LINDGREN Managing Director Odette Sweden Christian SCHWEDE Head of logistics information and assistance systems Fraunhofer Institute Sarah Alexa THISSEN Projects and Logistics Research Volkswagen For many years the automotive industry has suffered from deficiencies in forecasting and planning processes that are used to determine the demand profile for parts and assemblies required from the upstream supply chain. The impact of inaccurate forecasts has come more sharply into focus as a result of difficulties in the business climate coupled with greater expectations from customers. The speakers in this session will show that it is possible to achieve major improvements in the planning and forecasting process through a more active collaboration between customer and supplier, bringing significant benefits to all partners in the supply chain within a short timescale. They will demonstrate how Odette tools can be used within the collaborative process to identify the problem areas and make the measurements which are essential to understanding how and where significant improvements can be achieved.

12 Tuesday 20 May Successful auto-gration of SMEs Connecting the final links in the digital supply chain Ralf HILLE CEO Rotas Automotive Services Bernard DUBOIS CEO BD Conseil Small and medium enterprises (SMEs) play a major role in the global value chain of the automotive industry but to carry out this role successfully they must become fully integrated in electronic business processes. The auto-gration e-business standard provides SMEs with an easy entry into the digital value chain. As the leaders of auto-gration deployment in the French and German automotive industries, Mr Dubois and Mr Hille are well placed to demonstrate the opportunities available to smaller companies, not only in France and Germany but throughout Europe and beyond. This session will cover: auto-gration activities in France and Germany Recent recommendations by the VDA Pilot carried out by Renault Concepts for the introduction of auto-gration in SMEs Integration support for smaller partners Live demonstration of auto-gration exchanges The material certificate project Patrick MARCHAND Project Manager CETIM Fabrice CHEVALEYRE Operations Technical Coordinator Forge Foundry Federation On the initiative of CETIM and the French Forging Association (AFF) a Material Certificate Workgroup was constituted in 2010 to carry out a survey of the steel supply chain and establish the status of material certificate exchanges. By 2012 the principle of dematerialisation of material certificates was established and specification work was completed. Since then the practical work of implementation has started. A first pilot case has demonstrated the technical feasibility of the project and has allowed the team to identify all the potential advantages. The pilot exceeded expectations and highlighted the urgency of replacing the current exchanges of paper documents with electronic exchanges. This session recaps the story so far and discusses the next steps. Odette2014:

13 Tuesday 20 May Discussion Forum Global MMOG/LE: Can Version 4 meet the latest industry needs? Project Team Members Valery BRAEM Head of SC Collaboration & Supply Network Continental Automotive Odette and AIAG recently completed their update of the industry-standard Global MMOG/LE logistics assessment tool. The newly released Version 4 contains significant revisions to reflect the changing needs of the automotive industry including: A Basic version that can be used by organisations in the lower tiers of the supply chain as a first step to full compliance Introduction of criteria regarding Risk Assessment & Management Increased functionality and improved visual aids This session will explain the changes that have been made and the benefits of using the assessment as a continuous improvement tool, particularly for lower tier suppliers. These benefits will be illustrated by case studies presented by user companies Discussion Forum Aligning your green logistics to internal and external constraints John BUCHANAN Emerging Market Sourcing Manager Ford Marc COTTIGNIES Engineer ADEME (*) Sjoerd EWALS Sr. Project Manager Ewals Cargo Care Frederic ROBERT ALE Logistics Environment Manager Renault The environmental pressure on our industry continues to grow, with an increasing emphasis on CO 2 reporting for freight transport. There are numerous sources of data and new standards being published which often include different options for emissions calculation meaning that logistics operators and shippers can face difficulty in knowing which to follow. Last year, Odette published its GHG Reporting Guidelines to give the automotive industry practical help in understanding all the issues involved and to provide guidance to best practice in real world commercial relationships. With input from a vehicle manufacturer and a LSP, this session will review the contents of the Odette Guidelines and take a look at what is happening in the industry today. It will examine the drivers behind the recent legislation in France, the first country to make freight transport emissions reporting mandatory, and report on a review carried out by the French Transport Users Association of the various reporting tools that are available. It will also examine an independent charter initiative to check on action plans against objectives and review the plans of various governments in the context of possible future EU legislation. This session and the subsequent open discussion will be of interest to all companies involved in the ordering and supply of automotive freight transport in Europe. (*) French Environment and Energy Management Agency

14 Exhibitors

15 Additional activities - Monday 19 May Visits These visits are offered free of charge to conference delegates on a first come first served basis. Departure from the (timings may vary slightly and will be confirmed before the event). Can be booked on line at time of registration. Renault Trucks - Bourg en Bresse (Limited availability) City of Lyon Networking Evening Capitalise on this unique opportunity where logistics and IT professionals from the global automotive industry come together under one roof. An entertaining evening dinner is offered free of charge to all delegates by This is one of the highlights of the Conference and is an excellent opportunity to network and spend the evening with colleagues and customers in a relaxed atmosphere. It will take place in the heart of Lyon at the historic Embarcadère for a stylish evening by the river. The evening promises to be a lively highlight of the conference. It must be booked at time of registration to guarantee access.

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