india template

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Volvo India Private Ltd Vendor Development
SASA Go Global Sept 13th 2004
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3P Purchasing Organization
Head of PurchasingVolvo 3P B. Blin
Head of PurchasingParts C. Augustsson
Head of PurchasingPowertrain B. Linsolas
Integration Mgt Support JM. Lanne
Assistant P. Götz
IS/IT E-Com
Controlling
C. Rivoire
M. Tobrand
R. Larson
Chassis Project
T. Fraind
A. Santos
A. Santos
Volvo 3P Purchasing "AP"
Support Functions
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Activities

• Indian Hub for Emerging Market Sourcing Program
• Indigenisation of Truck and bus parts
• Insure supply of products and services for Volvo
  India operations according to the Quality,
  Delivery and Cost requirements.

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Key figures

• Work force 20 persons
• Spend 2004 Direct
• Direct 11 m EUR
• Indirect 4 m EUR
• Export order book 20 m EUR
• Suppliers (Direct Material) 75

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Supplier profile

• No of suppliers (direct material) 72
• Suppliers who manufacture 66
• ISO 9000 certified 94
• QS 9000 certified 60
• ISO 14001 certified 21

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Task of Volvo India is to assist the Global
Purchasing Organization in their activities for
sourcing components and Services from India
Emerging Market Sourcing
Global Sourcing From India
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Components locally sourced in India

• Seats
• Interior trim
• Glasses
• Mirrors
• Battery
• Wire harness
• Cab welding

• Tipper body

• Fuel tank
• Fasteners
• Fifth wheel
• Chassis castings
• Metal Pipes
• Cross members
• Air tanks

• Gearbox
• Clutch housing
• Flywheel housing
• Prop shaft
• Clutch

• Drive axle
• Tyres
• Rims
• Brakes
• Mudguard
• Leaf springs

• Locally sourced
• Planned in 2004
• Planned before 2006

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Components locally sourced in India

• All Fabricated parts

• Tail lamps
• Side marker lamps

• Axle
• Tyres
• Rims
• Brakes
• Suspension
• Leaf springs

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A snapshot of India auto comp industry

• Export of auto components in 02/03 800 m USD
• Expected to grow at 18 CAGR, target 2.5 b USD in
  2010
• 200 companies QS9000 certified, 50 ISO 14001, 4
  Deming prizes
• Emerging global leaders Bharat Forge, Sundaram
  Clayton
• Volvo, Toyota, Ford, DC, Cummins, Bosch, Delphi,
  Visteon have already put India in their sourcing
  map

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The roots of Indias competitiveness

• English speaking country
• One of the worlds lowest Labour and Overheads
  Costs
• Skilled workforce / Good education Level
• Experience with Global Automotive OEMs
• Government incentives on Exports

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From low cost to Global competitiveness
Government

• Develop infrastructure
• Simplify tax system, reduce bureaucracy
• Develop FTA within Asia

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From low cost to Global competitiveness
Companies

• Think big !
• Establish cooperation/JV with global companies
• Invest in state of the art equipment
• Benchmark world leaders
• Develop logistics.
• Improve time-consciousness, respect commitment.
• Develop Project management skills
• Supply Chain and Value Chain integration
• Compliance with International OEMs Product
  Liability demands

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Thank You.