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Pres Krueger Nissan

Aug 20, 2015

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  1. 1. Bill Krueger
    • Senior Vice President, Manufacturing, Purchasingand Supply Chain Managementfor the Americas
    • Nissan North America Inc.
  2. 2. Global Sourcing Strategies Supply Chain 15,000km, 150km or 15km?Bill Krueger Automotive News Manufacturing Conference May 17, 2007
  3. 3. INDIA INDIANA IN THE PLANT or Whats the correct answer?
  4. 4. Low cost of labor availability 349 M 807 M 2,600 M
  5. 5. Technology map of the world Source: The Economist, June 24 th2000, p.81
  6. 6. Technology centers Sillicon Alley, NY Boston, MA Austin, TX Cambridge, England Stockholm, Sweden Helsinki, Finland Sophia Antipolis, France Munich, Germany Tel Aviv, Israel Bangalore, India Singapur Hsinchu-Taipei, Taiwn Silicon Valley, CA Monterrey MEX
  7. 7. Japan Local 130km Europe - Local 600km Lower labor->JPN 2400 - 6500Km 18-50 x Lower labor -> NA 2000 - 15000Km 4-30 x US - Local 500km Average Distance350Km ->4,600 Km(13 x) Logistics Distances for Global Parts Lower labor -> EUR 2500 - 8000Km 4-13 x
  8. 8. Order Lead Time Firm Horizon U.S. Mexico Japan China 86 40 16 4 D A Y S
  9. 9. Risks associated with Global sourcing
    • Financial Risks
    • Obsolescence-Commitment for Fab & Raw materials due to extended supply pipeline.
    • Currency Fluctuation/Stability-price adjust agreements
    • Premium Freight-recovery & refilling the pipeline
    • Inventory Carrying Cost
    • Non-Price related Supply Chain Costs
            • Warehousing
            • Repackaging
            • Expendable packaging disposal
            • Sequencing parts
    • Transportation Price Fluctuations
    • Supplier Management & Oversight Cost
  10. 10.
    • Supply Risks
    • US Customs Delays due to lack of C-TPAT certification
    • Transit Delays
      • Weather
      • Carrier route changes
      • Port of call cancellation
      • Port labor or Customs disruptions/ strikes
    • Freight Damage
    • Systems failures
    • Raw Material Supply Control & Stability
    • Design Change & Engineering Change Coordination
    • Global Supplier Capacity
    Risks associated with Global sourcing
  11. 17. SCM process map Manufacturing Material Handling CCR Transport M&S Service & Accessories Service Part Suppliers Service Parts Service/ Accessory Parts Service/ Accessory Parts Parts Arrangement Scheduling Inventory Control Parts Ordering Production Material Nissan and Infiniti Dealers Vehicles Vehicle Orders & Forecast Vehicle Orders & Forecast Production Part Suppliers Parts Orders & Forecast International Logistics Domestic Logistics
  12. 18. MANUFACTURING PURCHASINGDESIGN SUPPLY CHAIN MANAGEMENT STRONG BUT INDEPENDENT Customers Suppliers CONSEQUENCES?
  13. 19. Sub-optimal Logistics Optimal Purchasing
  14. 20. MONOZUKURI MAKING THINGS MANUFACTURING DESIGN PURCHASING SUPPLY CHAIN MANAGEMENT CUSTOMER QUALITY NOW CONSOLIDATED OBJECTIVES REGIONAL INTEGRATION NNA, NMEX, NBA CUSTOMER RESPONSIVENESS Customers Suppliers VALUE NETWORK OPTIMIZATION
  15. 21. MONOZUKURIS Overarching Goal: Value creation byreducing the total delivered costof highqualityproducts to ourcustomers .
  16. 22.
    • Parts assembly level optimization
    • Development of efficient packaging
    • Transportation filling optimization
    • Build the logistics corridor
    Regional Supply Chain Management (Americas)
  17. 23. NG OK Utilization of Efficient Packaging 0.00 0.50 1.00 -parts per m+-logistics cost (pkg & freight)+
    • Packaging must guarantee parts QUALITY during transportation and handling.
    • To achieve max. quantity of parts per m.
    • Use of returnable or disposable packaging based on optimum logistics cost.
    Best practice
  18. 24. Transportation fill optimization Modular packaging ok Non modular packaging ng Dimensions according to AIAG standards (48 x 45 pallet footprint) to get maximum transport utilization NG
    • Key elements to succeed:
    • Use of modular packaging (AIAG)
    • Standardized transportation equipment
    • Supplier responsibility as shipper of their ownproducts
    (per piece) OK
  19. 25. NNA-S NNA-D NNA-C NMEX-A NMEX-C United States Mexico
    • Aguascalientes (MEX)
    • Stamping
    • Engine & Transaxle
    • Vehicle
    • CIVAC (MEX)
    • Vehicle
    • Production of service parts
    • Canton, MS (USA)
    • Stamping
    • Vehicle
    • Decherd, TN (USA)
    • Engine & Transaxle
    • Smyrna, TN(USA)
    • Stamping
    • Vehicle
    Nissan Mexico & USA plants Laredo, TX Veracruz Altamira Lazaro Cardenas Manzanillo Acapulco Eagle Pass, TX Logistics corridor
  20. 26. Critical success factors
    • Manage the supply network, not just suppliers
    • Effective supplier relationship management and supplier development
    • Focus on total delivered cost, not price
    • Involve all functions in the value network
    • Develop parts commonization strategy reduce complexity
    • Seamless global processes, program discipline and efficient way of working
    • KPIs and Goals aligned across all functions
  21. 27. The Americas SCM Mission is to . Support Regional Purchasing sourcing activities which result in theoptimumDelivered Duty Paid (DDP) parts cost.Support the manufacturing process with the packaging designs, logistics routes and facilities whichoptimizethe delivery of globally, regionally, and locally sourced parts.
  22. 28. VALUE NETWORK OPTIMIZATION MONOZUKURI MAKING THINGS MANUFACTURING DESIGN PURCHASINGSUPPLY CHAIN MANAGEMENT NOW
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