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MP

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Wheel & Tire. SILS. Safety. Purchasing Logistics / H Savmyr. 2000-12-11. Supplier Choice ... Cheap. A possibility for small suppliers to provide us with EDI ... – PowerPoint PPT presentation

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Title: MP


1
Volvo Car Corporation
2
e-business challenges !
Shareholder value
What drives the business?
Business
People
Technology
Product, Manufacturing, Logistics, Information!
Change Management!
3
Customer Ordered Production- Short lead-time,
high precision
DISTRIBUTION
DELIVERY
PRODUCTION
1
SUPPLIER
ORDER
4
Total Supply Chain
2nd tier
Vehicle distribution
Dealer/ Customer
Plant
1st tier
Transport
Physical flow
Capital flow
Information flow
5
  • Supplier relationships

Making the Transition
Purchase priorities
Supplier positioning focus
  • Whole of life cost
  • Partnership
  • Shared default/risk
  • Partnership purchasing

Strategic Purchasing
  • Total cost of acquisition
  • Process capability
  • Cycle time
  • Flexibility/innovation
  • Preferred Suppliers

Strategic buying
Q U A N T U M L E A P
  • Price
  • Product quality
  • Delivery
  • Approved suppliers

Commercial buying
  • Budget
  • Headcount
  • System costs
  • Savings

Transactional buying
  • Available suppliers

Internal focus of activities
6
Material Planning and LogisticsImportant factors
for Volvo
  • Customer Ordered Production
  • Early involvment in vehicle project
  • Landed cost
  • Delivery precision
  • Reliable Lead Logistics Provider
  • Supplier communication - EDI

7
Supplier to Consumer Logistics
Parts
M A R K E T A R E A S
Design for Logistics
Industrial Structure
Torslanda
Supplier choice
Gent
Capacity Flexibility
CCT ECT ECG
Uddevalla
Logistics Assurance
KDO
Test Pre-series Materials management
Inbound Logistics
Outbound Logistics
8
Benefits supplier parks
  • Improving order to delivery process and enables
    customer ordered production (COP)
  • Reduces logistic costs and inventory
  • Closer and quicker communication between the
    plant and park suppliers
  • Improved quality
  • Freeing up space in car manufacturing plant

9
Change to Modules Systems
From
To


Many direct suppliers
  • Module suppliers



Many direct contacts
  • Less direct suppliers



Substantial own design
  • Design by suppliers

  • More second tier suppliers

10
Fitting of modules systems in assembly
Cockpit
Front-end
Seats
Safety
SILS
SILS
SILS
SILS
SILS
SILS
SILS
SILS
Harnesses
Headliner
Door Trim
Wheel Tire
11
Supplier Choice criteria's
12
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13
Delivery precision
  • Number of parts delivered inside time frame
  • --------------------------------
  • total number of parts required
  • Time frames
  • minutes for sequence suppliers
  • hour(s) for suppliers with transport time table
  • 1 day for the rest
  • Measuring point
  • Where Volvo takes over responsibility!
  • Mistakes punished at the earliest point of
    discovery, i.e. when required for arrears, when
    delivered for over-deliveries
  • Common for all Volvo units

98
14
LEAD LOGISTICS PROVIDER

Transport leverage and optimisation
Packaging leverage and standardisation
Transport precision
Track and trace along the supply chain
Protect materials and vehicles
15
EDI (4 B 2 B)Electronic Data Interchange
Before

After
16
Volvo Cars EDI Demands
  • 100 usage of EDI without a manual interference,
    the business must include the following
    functionality's according to Volvos profile of
    the Odette subset of EDIFACT.
  • DELFOR, Delivery schedules message.
  • Calloff, based on DELFOR
  • DELJIT only sequence suppliers.
  • DESADV, Advanced shipping note.
  • OTL, Odette transport label.
  • INVOIC, Self-billed message
  • ENGDAT, Engineering model exchange, Odette
    message.

17
Logistic EDI flow
Purchasing
Orders
Agreements
Supplier
SAL
Orders
Data file
MFG
DELFOR / Call-off
Manual SHP-routine
SHP
DESADV
Goods / Labels
VCC-Unit
SAL Sales Office MFG Manufacturing unit SHP
Ship from location
EDI Self Billed INVOIC
18
EDI Vs WEBTwo Scenarios
EDI Web Service Provider
EDI file
Browser
EDI file
Volvo
Supplier
EDI file
EDI file
19
EDI Vs WEB
  • EDI
  • A need for Volvo to reach customer Order
    Production
  • A need for many suppliers
  • Application to application without a manual
    interference.
  • WEB
  • Reachable everywhere
  • Cheap
  • A possibility for small suppliers to provide us
    with EDI
  • Higher risk for errors due to manual handling

20
Future supply chain demands need e-business
development!
Exchange of demand and capacity information
along the supply chain for critical items !
Exchange of problems and inventory
informationfor pro-active decisions !
Transparency and visability is a must !
21
Thanks for your attention!
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