Wendi Gentry-Stuenkel

Transcription

1 Wendi Gentry-Stuenkel

2 Topics Automotive Supply Chain- State of the Industry Minimizing supply chain variability Managing supply chain variability 5/25/2016 2

3 Industry Drivers- Requirements for Capital 3 3

4 Industry Drivers- Requirements for Capital Trade off between standardization/ capital investment and supply chain cost & risk 4 4

5 Logistics Relevancy We re often dealing with the same Companies Locations People Capital Equipment 5

6 U.S. SAAR FCA US vs. IHS FCA IHS U.S Market Proposed SAAR Forecast

7 North American Auto Assembly Plants 7

8 Trading Partners Trade offs between standardization/ capital investment and supply chain cost/risk 8

9 Mexico Logistics Industry Growth Vehicle production in Mexico increased from 2.6 million vehicles in 2011 to 3.4 million vehicles in 2015 Mexican automotive and auto parts industries have received 23.2 billion dollars in new investments since 2013 Mexico is the 7 th largest producer of vehicles in the world and projected to be the 5 th largest by 2020

10 Mexico Logistics Auto Parts Industry in Mexico Leading supplier to the USA 81.4 billion dollars in production value 41.9 billion dollars in imports 64.5 billion dollars in exports 58.8 billion dollars in consumption value Mexico has more than 2,500 companies engaged in manufacturing auto parts located in 19 states. Confidential Information 2016 FCA US LLC Source: ProMéxico

11 Mexico Logistics Mexico s Trade Agreements EFTA: Iceland, Liechtenstein, Norway and Switzerland NAFTA: North America trade European Union North Triangule: Honduras, El Salvador & Guatemala Israel Japan Nicaragua Costa Rica G3: Colombia Bolivia Chile Uruguay Mercosur: Argentina Brazil Peru Cuba Confidential Information 2016 FCA US LLC

12 Borders- Minimizing Variability Security U.S. C-TPAT, Tier 3 - Customs - Trade Partnership Against Terrorism - Charter member since 2002 Canada PIP Partners in Protection 2003 Mexico NEEC Nuevo Esquema de Empresas Certificadas January 2013 Europe AEO Authorized Economic Operator Security Compliance U.S. ISA Importer Self Assessment Canada PIC Partners in Compliance 2004 Mexico NEEC Nuevo Esquema de Empresas Certificadas January 2013 Europe AEO Authorized Economic Operator Security 5/25/

13 Borders- Minimizing Variability Border Crossing Privileges FAST Free and Secure Trade Into U.S. CSA Customs Self Assessment Into Canada Other Initiatives ACE Entry Filing CEE- Centers of Excellence and Expertise COAC- Advisory Committee on Commercial Operations of Customs Beyond the Border NAM- Customs Task Force 5/25/

14 Minimizing Variability Carrier Assessment Modeled after MMOG (Materials Management Operating Guidelines) 14 onsite assessments have taken place between Sept 2014 May additional onsite assessments are planned for the remainder of the 2015 CY. Second FCA assessment team added in Feb 2015 Assessments have had a tremendous amount of positive feedback Allows face to face meetings with FCA and carrier to improve our business relationship Provides the ability for the carrier to understand what s important to FCA and to review internal processes Provides the carrier the forum to communicate any concerns or potential process improvements 15% on average scorecard improvement for carriers that have had an onsite assessment 5/25/

15 North American Supplier Locations 15

16 Managing Variability Increasing variability for resulting cost efficiencies Increased use of rail/ Intermodal Partnership in consolidation 16

17 Pricing Trends 17

18 Measuring Performance- Fundamentals Statistics 101- Mean and Standard Deviation must be tracked 5/25/

19 Sustainability Report Inbound Transportation Year-over-Year Performance Annual Miles Truck 226,000, ,892, ,994,830 Percentage 60% 61% 56% Rail/ Intermodal 226,000, ,193, ,978,974 Percentage 40% 39% 44% Improved service levels (e.g., decreased variation) from Railroads and Intermodal Carriers facilitate cost savings without degradation in customer service 2016 FCA Sustainability Report 19

20 Managing Variability Robust Networks Strong Partnerships 5/25/

21 Managing Variability Variability cannot be eliminated Visibility (measurement) improves the ability to manage Filtering through the data for meaningful indicators 5/25/

22 Managing Variability Operational exception based reporting Data analytics for demand planning Further integrated S&OP processes to drive the business Enhanced scenario planning Flexibility Responsiveness 5/25/

23 The Red Queen 23

24 Backup

25 Quotes The line between disorder and order lies in logistics - Sun Tzu My logisticians are a humorless lot they know if my campaign fails, they are the first ones I will slay. - Alexander the Great "Gentlemen, the officer who doesn't know his communications and supply as well as his tactics is totally useless. - Gen. George S. Patton, USA 25 25

26 Proprietary and Confidential 2