Automotive Logistics Mexico Conference 2018 Peter Koltai Head of Production Control and Logistics Audi Mexico

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1 Automotive Logistics Mexico Conference 2018 Peter Koltai Head of Production Control and Logistics Audi Mexico

2 Agenda 1. History of Audi Mexico 2. Major logistic areas of Audi Mexico 3. Smart factory logistics initiatives of AUDI AG 4. Major local factors to influence digitalization of logistics in Mexico 5. Smart logistics visions of Audi Mexico 6. Closure

3 Audi Mexico s timeline September Decision of the site in San Jose Chiapa, Puebla August Equipment and installation Supplier Development September Inauguration of the factory Supplier Development May Decision of location in Mexico May First stone Training Training of of Personnel Personnel October Inauguration of the Training Center

4 2017 With 158,550 Audi Q5 produced for the world market we beat our target

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6 The challenges we faced 1. The first Audi factory outside of Europe 2. New collaborators and new language 3. New product 4. New systems

7 The achievements 1. The first Audi factory outside of Europe in full operation 2. Over 5,000 new employees qualified 3. A successful Audi premium product Hecho en México 4. Digital logistics with our new systems

8 Let s have a look at Audi Mexico San José Chiapa

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10 Audi Mexico Logistics in facts

11 Trailer Yard 315 Trailers received per day Digital logistics: Trailer steering system and Telematic control Result: Production demand oriented unloading of all parts

12 Container Yard 246 TEUs received per week Digital logistics: Container steering system Result: Production demand oriented unloading of all parts

13 Goods Reception 3,480 KLTs and 696 GLTs per day Digital logistics: Goods receipt Live Result: Permanent control of material flow for all steps in the receiving process

14 Warehouse Material suppliers from NAR region: 171 Material suppliers from Europe: 346 Material suppliers from Asia: 12 Digital logistics: 100% scanning and permanent inventory Result: 99.99% Inventory Accuracy

15 Trailer Station 1,060 GLT and 246 KLT routes per day Digital logistics: digital route control and planning Result: 97% punctuality for all deliveries to the line

16 Supermarket 178 picks per vehicle Digital Logistics: Pick by voice and Pick by light Result: 55 PPM rate

17 Supermarket Pick by Light Picks per day: 129,304

18 Line feeding 21 KLT and 7 GLT per vehicle Digital logistics: Digital tracking of all process steps from dispatch from supplier until the delivery to the point of use Result: Digital tracking of the total supply chain

19 FBU Yard Train loading 580 vehicles loaded in railcars per day Digital logistics: RFID Yard Management Result: Tracking and tracing all deliveries

20 FBU Yard Truck loading 150 vehicles loaded in trucks per day Digital logistics: RFID Yard Management Result: Tracking and tracing all deliveries.

21 Motto of the conference A vision for Mexico, driving change, building confidence strengthening investment Louis Yiakoumi

22 The mother Company of Audi Mexico, AUDI AG is a German company so the main influences for future developments will be driven from them What is happening regarding digitalization and electrification at AUDI AG? By more than electric cars BEVs and PHEVs

23 SMART FACTORY

24 SMART LOGISTCS

25 25 Präsentationstitel Datum Basis of the digital factory: Process knowledge and data availability Process knowledge Data availability SMART LOGISTCS

26 Quick-Check-In Supplier: Scan of shipment documents GPS Radius 50 km: Automatic schedule adjustment Map data 2017 Google GPS Radius 20 km: GPS Radius 1 km: Automatic material balance Automatic material booking

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30 R A Y

31 Major local factors that will influence the development of the digitalization of the logistics in Mexico Inbound Transport Costs Nearly the same as in Mexico USD / Km USD / Km Inhouse labor costs 13 times more than in Mexico USD / Hour USD / Hour (1) Explosión de la industria automotriz en Mexico: de sus encadenamientos actuales a su potencial transformador, fundación Friedrich Ebert Location Neckarsulm Ingolstadt No area availability for potential expansion

32 SMART FACTORY VISION Smart Logistics Audi Mexico - Inbound Universal Control Tower Supply chain optimization via Web-based visibility and proactive monitoring and alerting Analysis and management of freight data displayed in a customized dashboard tool for a smarter and faster decision taking Consolidation of all transportation modes and logistic service providers in one tool to optimize user experience Track and trace at part number level of every single point of the logistic inbound process to identify deviations and take actions in time

33 SMART FACTORY VISION Smart Logistics Audi Mexico - Inbound Smart Packaging Through RFID technology all inbound deliveries can be quickly identified through checkpoints all around the factory Suppliers upload the information into every RFID tag so that it can be quickly checked in at the goods reception thus saving time, labels and optimizing the Inhouse processes

34 Smart Logistics Audi Mexico - Inbound Autonomous Transport JIS deliveries between supplier park and assembly line Shunting between Trailer Yard and Goods reception area Supplier park 1-Montage Route Supplier park 2-Montage Route TY Warehouse Supplier-Park SMART FACTORY VISION

35 SMART FACTORY VISION Smart Logistics Audi Mexico - Inhouse European Trend Supermarket 2.0 European Trend Automatic line feeding

36 Closure Digitalization whether in Europe or Mexico will work in conjunction with technology and humanity. Our ambition is to continue develop in an emotional way and with perfection this technology and human connection.

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38 Mexico contribuimos a tu desarrollo