Volvo 3P

Volvo
3P 3P
Volvo
Purchasing
Purchasing
Page1
Russia
December 2, 2011
Volvo Group Russia - Milestones
1969
Volvo brand registered in USSR
1973
First Volvo truck delivered to USSR
1994
VTC Office opened in Moscow
1998
ZAO “Volvo Vostok” is created
2003
VTC Zelenograd opened
2004
VFS Vostok established.
2005
First Volvo Truck Center in St Petersburg opened
2006
Volvo Parts Regional Warehouse opened
2007
Decision upon investments in Volvo Plant in Kaluga taken.
2007 OCT.15
Ground Breaking Ceremony
2008
Volvo Truck Center Moscow-North opened.
2008
35-Year Anniversary of Volvo in Russia
2009 Jan.19
Grand ceremony of Production start on Kaluga Plant.
2009
Volvo Truck Center Kaluga opened.
Volvo 3P
Purchasing
Page 3
Volvo in Russia – 38 years of success
Volvo Trucks became the first foreign truck manufacturer
to deliver trucks to Soviet Union.
100 trucks Volvo F89 to Sovtransavto Leningrad in 1973.
Volvo 3P
Purchasing
Page 4
Volvo 3P
Volvo Group news in oct 2007
100 000 000 €
early 2009
10 000 Volvo
5 000 Renault
1000 employes
Volvo 3P
Purchasing
Kaluga Plant, Russia
• First common plant VTC & RT
• Capacity:10 000 Volvo & 5 000 Renault
Trucks
• Local sourcing part of the business case
• Russian HD truck market expected to grow
• The market demands European trucks
Volvo 3P
Purchasing
6
Kaluga Plant
Volvo 3P
Purchasing
Page 7
Volvo in Russia
Volvo 3P
Purchasing
Page 8
3P Purchasing
1. Volvo group
2. 3P
3. 3P Purchasing
Volvo 3P
Purchasing
Page9
Corporate Values
Volvo 3P
Purchasing
Page10
Volvo Group
Volvo
Trucks
Renault
Trucks
Mack
Trucks
UD Trucks
Buses
Construction
Equipment
Volvo Penta
Volvo Aero
Volvo 3P
Volvo Powertrain
Volvo Parts
Volvo Logistics
Volvo Technology
Volvo Information Technology
Volvo Group Real Estate – Volvo Business Services
Volvo 3P
Purchasing
Page11
Financial
Services
New Volvo Group Organization
CEO
CEO office
coordination
Group Trucks
Human Resources
Strategy
Public & Env. Affairs
Legal
Communication
IT Governance
Truck
Joint Ventures*
Group Trucks
Sales &
Marketing
Americas
Group Trucks
Sales &
Marketing
EMEA
Group Trucks
Sales &
Marketing
APAC
Mack
Global Brand
Renault & Volvo
Global Brand
UD
Global Brand
Group Trucks
Operations
Group Trucks
Technology
Volvo CE
Business
Areas**
Finance &
Business
Support
Volvo Penta
VFS
Volvo Aero
Volvo Buses
Volvo 3P
Purchasing
12
*
Chairman of UD Trucks legal company
**
Chairman of VCE
Governmental
Sales
Global Line-up
Volvo 3P
Purchasing
Page13
Products
Volvo Trucks
FH
FM
FMX
Volvo 3P
Purchasing
Page14
Products
Renault Trucks
Premium
Kreax
Volvo 3P
Purchasing
Page15
Volume Plan – Jan 2011
28 000
26 000
24 000
22 000
20 000
18 000
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
0
Future
capacity
Installed
capacity
2010
Volvo 3P
Purchasing
2011
2012
2013
2014
2015
2016
2017
2018
2019
3P Purchasing
1. Volvo group
2. 3P
3. 3P Purchasing
Volvo 3P
Purchasing
Page17
Volvo 3P Global Presence
Gothenburg
1314
Lyon
Allentown
295
Greensboro
404
961
Ageo
363
Shanghai
Bangalore
40
177
Employees: 4 000
Sites: 9
Curitiba
105
Supporting 4 brands
Brisbane
25
*Approx figures, March 2009
Volvo 3P
Purchasing
Page18
Volvo invests for the future
• New Heavy duty range for VTC Europe & Brazil
• New heavy duty range for RT
• New electronic architecture
• New medium duty range project
• Russia growth
• Low cost range project P9103 in
connection with 2 JVs
Volvo 3P
Purchasing
Page19
3P Purchasing
1. Volvo group
2. 3P
3. 3P Purchasing
Volvo 3P
Purchasing
Page20
Volvo 3P purchasing Global Presence
Gothenburg
150
Moscow
Poland
9
Lyon
150
9
Bursa
Ageo
60
4
Greensboro
100
Shanghai
Bangalore
40
70
Mexico
8
700 employees
Curitiba
30
4.8 B€ spend
Brisbane
8
Volvo 3P
Purchasing
Page21
Purchasing 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
Volvo 3P
Purchasing
Page 22
Volvo 3P
Global Sourcing Process
Global Sourcing Process
FRAMEWORK
Segment
Strategy
Definition
BUSINESS AWARDING
2
1
Segment
Strategy
3
4
5
6
PSL
7
8
Supplier
choice
Volvo 3P works in
processes…
The GSP is an
8 steps process
4 main activities
3 approval milestones
QUALITY is a part of the
supplier selection
Validation by Decision Fora
The first activity is made of step 1 (segment strategy definition)
Example of input: Request For Information (RFI) and Short Supplier Evaluation Model (SSEM)
The second activity is made of step 2 (Data Collection) and step 3 (Identify Pot Supplier).
Example of output: RFQ, Potential Suppliers List (PSL) is approved by a decision forum
The third activity is made of step 4 (Request For Quotation),
step 5 (Evaluations;SEM,Indexes like Surface Treatment,Rubber,Software,Castings etc),
step 6 (Initial negotiation), and step 7 (Supplier choice).
Example of input to step 7: SEM, signing contract’s (PA,Productivity,Warranty PPM etc.)
The fourth and last activity is made of step 8 (Final negotiation & implementation).
Example of output: PMR start (Product Modification Request (project)
Volvo 3P
Purchasing
Premium supplier
Key measurements
• Commercial
– Competitive product cost
– Payment terms 105 days
• Financials
– Dependency < 30%
– Financial rating ≥ 2
• Projects
• Quality
– PPM < 10
– QPM < 30
– ISO/TS 16949 certification
– Acknowledge SQAM compliance
• Safety
– ZERO incident
• Environmental care
– Design to cost
– Deliver on the Quality, Delivery, Cost and Features
commitment
• Agreements
– PPM Agreement
– Purchase Agreement
– Warranty Charter
– Acknowledge Key Element Procedures compliance
– ISO 14001 certification
• Deliveries
– Dispatch precision ≥ 98%
– Logistic audit level A
– Full EDI/ WEB EDI
• Corporate Social Responsibility
– Acknowledge Key Element Procedure 6
compliance
Volvo 3P
Purchasing
Page24
Volvo 3P
Quality requirements in detail
Key Element Procedures describes details
Adobe Acrobat 7.0
Document
Volvo 3P
Purchasing
Comments to Key Elements
Volvo Construction Equipment in Kaluga
Вольво Строительные Машины в
Калуге
• A new plant is being built in Kaluga nearby Volvo Trucks with SOP in
2013
• Supplier base for local content is being established for
– Welded structures
– Under carriage parts
– Steel castings
• Строится завод площадью …. квадратных метров.
• Начало производства в 2013.
• Развивается сеть местных поставщиков для
– Стального литья
– Сварных конструкции
Volvo 3P
Purchasing
Layout
CBU
Stock
DI
TDI
T/up painting, PDI
72m
550m
Volvo 3P
Purchasing
30
20
10
210m
Office
Warehouse
Assembly line
Fabrication line
(Upper & Lower)
180m
40
30
20
W/p
arts
stoc
Frame paintingk
50
40
440m
External Road • Total Site Area
: 142,000M2
• Russia RAM(EXCA.) : 102,600M2
• Free Space( A )
: 39,400M2
10
Product Configuration
L
Width
: 3,440 mm
M
Model
Description(Max imum)
Overall Length(L)
Overall Width(B)
Overall Height(M)
Operating Weight
Volvo 3P
Purchasing
Excavator
Unit
mm
mm
mm
kg
EC360B(3.9m Arm)
11,223
3,340
3,625
36,500 ~ 38,360
EC460B(4.8m Arm)
12,070
3,340
3,650
44,500 ~ 47,880
EC460C(4.8m Arm)
11,940
3,440
3,650
44,500 ~ 47,880
VCE Kaluga : Volume and capacity
Excavators production volume in Kaluga
3 000
2 500
2 000
1 500
1 000
500
0
2013
2014
2015
Excavators volume in Kaluga
capacity
Volvo 3P
Purchasing
2016
• Volvo Group is Growing
• Our supplier base benefits from this growth
• Do You want to join?
Contact details to Thomas Motéus,
Purchasing Project Manager Russia
+46 31 322 18 84
+7 916 812 33 19
thomas.moteus@volvo.com
www.volvo.com/suppliers
Address:
Volvo 3P
International Purchasing, Dept. 28051, AB4N
405 08 Gothenburg, Sweden
Volvo 3P
Purchasing
Page 30
Thank You !
Спасибо!
Volvo 3P
Purchasing
Page32