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 Page2
Corporate Values Safety Quality Environment Page3
Global positions Trucks Marine engines 2 1 in Europe 2 Buses Heavy duty diesel engines 2 1 Construction Equipment 3 Aerospace components Leading independent provider Page4
Kaluga Plant Page5
Volvo Trucks no 1 in Russia 1 st foreign truck registered in Russia: 1973 1 st in geographical coverage of sales and service in Russia: 39 1 st in imported brand for 11 consecutive years in Russia 1 st in population of foreign trucks in Russia: +50.000 1 st in leasing portfolio for commercial vehicles 1 st in complete transport solutions 1 st in CKD manufacturing of foreign trucks in Russia: 2003 1st in automotive factory construction time 1 st in large-scale CBU manufacturing of foreign trucks in Russia Page6
Kaluga Production Capacity Volvo Truck 10 000 Trucks Renault Trucks 5 000 Trucks Page7
Products Volvo Trucks FH FM FE/FL Page8
Products Renault Trucks Premium Kreax Page9
Examples of current suppliers Page10
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-en- Bresse and Blainville Page11
Organisation Business Areas AB Volvo Mack Trucks Renault Trucks Volvo Trucks Nissan Diesel Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Business Units Volvo Powertrain Volvo Parts Volvo Logistics Volvo Information Technology & Others Page12
A Business Unit within the Volvo Group Page13
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" Page14
SPEND PEOPLE VEHICLE DYNAMIC 34% CAB 3% CHASSIS ELECTRICAL Total = 5600 M Total : 591 people Page 15
Global and Regional Strengths Production - Heavy Duty/Medium Duty Trucks North America Europe Japan India South America Australia Page 16
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 Page 17
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. Page 18
Sourcing Strategy - Russia Focus on few = Big Business scope Strategic suppliers Develop business together Long term business relationship Page19
Global Sourcing Process 1 2 3 4 1 2 3 4 5 6 7 8 Segment Strategy PSL Supplier choice Validation by Decision Fora RFI Data Supplier List RFQ SEM Nego Supplier Choice SSEM Page20
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 Page21
What components are we targeting for local sourcing Step 1 Frame rails Batteries Leaf Springs Complete Wheels Fuel tanks Air tanks V-stays, rods Windshield Step 2 ctn Cables Brackets X members Electrical Parts Steering Gear Muffler Bunks Step 2 ctn Seats Mirrors Air Deflectors Plastic parts Radio/CD Mats, Panels Paint shops Small Parts Other Page22
Timeplan Supplier Selection * Selected Suppliers Page23
Organisation Management Coordination JP.Kretz Head of B. Blin Human Resources F.De Surrel Assistant MC.Duval Cab P.Lundblad Electrical B. Morin Chassis N.Hamnstedt Vehicle Dynamics J. Marchner Supplier Quality Departmt. P.Lepromt Global Devlpt JM.Lanne Finance & Business Control L.Lugo Europe J. Klingberg Lyon E.Chapoulaud Gothenburg J.Klingberg North America P. Besson Allentown J.Alfier Greensboro P.Besson Australia P.Besson South America V. Bareto International D.Mackinovski Ageo H.Rieck Bangalore R.Colaco Shanghai S.Di Bartolomeo Turkey & Russia P.Mårtensson Page24
Contact details to Thomas Motéus, Project Buyer Russia +46 31 3221884 thomas.moteus@volvo.com www.volvo.com/suppliers Address: International, Dept. 28051, AB4N 405 08 Gothenburg, Sweden Page 25
Thank You! Спасибо!