Collins Aikman Global Supply Chain Man

Document Sample
Collins Aikman Global Supply Chain Man Powered By Docstoc
					         Collins & Aikman
 Global Supply Chain Management




ISTMA CONFERENCE
     MAY 13th - 16th, 2001
             Chicago, IL


            Joseph P. Robich
      Collins & Aikman Sr. Vice President
Global Procurement & Supply Chain Management
    Leading Automotive Interior Supplier


   NYSE: CKC
   Global leader in floor and acoustic systems
   Leading manufacturer of
    convertible roof systems
   Uniquely positioned - Tier 1/Tier 2
   72 facilities in 13 countries
   Approximately $2 billion in sales
                   2000 Sales = $1.9 Billion

  By Segment                  By Geographic Region
Full-Size Cars     4%            United States
Compact Cars      10%                 65%
Full-Size Vans/
                  12%                                Canada
     Mini Vans
                                                      12%
Sports/Luxury     17%


       Trucks/                                        Europe &
        SUV’s     27%                                  Other
                                                        17%

                                                 Mexico
Mid-Size Cars     30%                             6%
                     Surface Product Portfolio
                                   AHA™ Advanced Hydraulic Actuation system
                                     Tuflor™ Thermoformable flooring system
                                              Slimline family of cupholders
                                               Cavelflex™ Seating fabric
                                                Akroedge floormat edging




Accessory Mats
Convertible Top Systems
Doors, Console & Pillar Trim
Flooring Systems
Headliner Fabric
IP and Components
Luggage Trim
Package Trays
Seat Fabric
                   Acoustic Product Portfolio
                                    COMET® Acoustic Software
                                              AcTfiber™
                                              AcTfoam™




AcT™ Technologies
Dampners
Barriers
Absorbers
Interior Insulators
Flooring Underlays & Mastics
Luggage Compartment Insulators
Under Hood Insulators
Fabric Laminates
           Industry Penetration

Nearly 9 of 10 North American Vehicles have
          Collins & Aikman Content
                Solid Market Share Positions

                                      North America      Europe
   Floor & Acoustic Systems                  38%   # 1   8%   #3
   Convertible Tops                          69%   # 1   2%   #8
   Floormats                                 51%   # 1   9%   #4
   Body Cloth                                27%   # 1   4%   #9
   Headliner Fabric                          32%   # 2   --   --
   Luggage Trim                              29%   # 2   4%   #5
   Plastics*                                 3%    #13   1%   --

 Global Leader in
 Floor and Acoustic Systems
*Excludes Pending Becker Group Acquisition
         GLOBAL SUPPLY CHAIN MANAGEMENT
           Collins & Aikman Tooling & Equipment Purchases




                 Prior                    Future
                 Years Avg.   2001        Years Avg.
                 Purchases    Purchases   Purchases

Tooling          $10 - 15     $28 -32     $45 -50


Equipment        $20          $25 - 30    $40 - 50




 ($ Millions)
       Global Supply Chain Management
                           ISTMA Conference 2001

PROCESS ENG.              MGMT/FINANCE    PURCHASING             SUPPLIERS
                                             Requisition
                                               Arrives             Receive
                                                                   Order
                                            Gather details
                             Approval       & Dev. Bid List
Research Stage               Process       Including Specs
Program Engineering                         & Comm. Req.
                                                                   Provide
                                             Issue Bid List        Product
                                         (Determine Suppliers)     Service

                                           Review quotes w/
                                           Acquisition Team
                                             - Purchasing          Launch into
Design Specs. & Types                         - Plant Eng.         Serial Production
                                             - Operations
                                                - Finance
                                                 - Quality
                                          additional Supplier
                              Issue            Resources           Send Invoice
Develop Appropriation         Payments
Request with Financials                        Issue PO

                                                                   Receive Payment
Global Supply Chain Management
      Continuous Improvement Process
Capital Equipment Spend                          $65 million/annum
Supplier Count                                                1,500
Capital Equipment Savings 2001                               million
Capital Equipment Savings 2002                               million

• Focus procurement team on capital equipment acquisition (six sigma)
• Review necessary specifications versus “nice to have“
• Utilize e-commerce for reverse auction to maximize market size
• Consolidate outside tooling sources
• Consolidate outside engineering support
• Ensure math data complete to ensure accurate data for RFP
• Prevent rigorously spec changes that increase costs at supplier
• Demand & collect rebates on multiple purchases
• Ensure we pay for design services on first machine only
• Demand performance guarantees and ensure after sales services

After sale services and warranty extension becomes major
process to ensure cost avoidances, equipment up time and
product throughput
       GLOBAL SUPPLY CHAIN MANAGEMENT
              World Class Supplier
   Lowest total delivered cost on global basis
   High quality producer with zero PPM defects
   100% on time delivery, every time
   Continuous Improvement –
    Formal and proven commitment to product and process
    improvements on a continual basis
   Excellent Feedback system (corrective action)
   Technology and Innovation –
    Technology leaders and ahead of the competition
    with solid management commitment to the business
   Adaptability – Willing to invest in new equipment, develop new
    technologies and improve dramatically in support of the customer
GLOBAL SUPPLY CHAIN MANAGEMENT
      ISTMA Conference 2001

          EQUIPMENT MANUFACTURER
   Knowledge of customers commodity / business
   Proven Competence
   Proven Experience - Some level of references
   Strong design capabilities
   Excellent technical capabilities to build tools / equipment
   Focused on customer delivery requirement
   Second to none after sale support (service & parts)
   Energy efficient
   Creative financing
    GLOBAL SUPPLY CHAIN MANAGEMENT
          ISTMA Conference 2001




In times of change, learners inherit the world
      while those who stop learning find
 themselves beautifully equipped to deal with
         a world that no longer exists.
                                   Eric Hoffer
                    GLOBAL SUPPLY CHAIN MANAGEMENT
                                   Potential e-Sourcing Solutions

             Generic commodities                                                 Customer Commodities



                     Price-Focused       E-Sourcing Solutions            Collaborative


                                                                                      •Enable end user
E-Sourcing                                                •Manage and control
             •Drive lowest         •Manage/track SKU’s                                choice to create
                                                          bid process with
objective     possible price                                                          customized offerings
                                                          emphasis on reducing
                                   •Simplify purchasing
                                                          overall costs
                                   and supplier                                       Control total
                                   management                                         supply chain
                                   process
                                                          •Simplify purchasing
                                                          and supplier
                                   •Reduce costs
                                                          management process
                                   associated with buy

             •Online auction                                                          •Collaboration with
                                                          •E-bidding
Potential                          •E-catalog                                         partner suppliers
             •Virtual exchange
solution
                                   •Extranet access to                                •Syndicate/license
                                                          •Extranet access to
                                   total supply base                                  customization tools
                                                          total supply base
                                                                                      and functionality
     GLOBAL SUPPLY CHAIN MANAGEMENT
           ISTMA Conference 2001
                                  e-Commerce
   It’s here and it’s real - Still Developing
   Register within your industry e-commerce marketplace
   Develop and Implement an e-market strategy
        Website
        Catalogue of products and services
        Benchmark best-in-class
   Develop a system to seek out potential customers - “surf net”
   Strengthen collaborative skills to the greatest possible degree
   Redesign internal process in anticipation of fully developed e-marketplace
        Be prepared for eRFI and eRFQ
   Integrate your internal systems - seamless information flow to all functions
   Don’t lose sight of world class price competition
   Now - do the above with your supply chain

                        Collins & Aikman Website
                         www.collinsaikman.com
GLOBAL SUPPLY CHAIN MANAGEMENT
      ISTMA Conference 2001



              E-COMMERCE

              “The first ever sale of a new injection
              machine over the Internet, a Demag
              Ergotech e@se, was to Gebhard &
               Wagner GmbH, Nuremberg,
              Germany. Other machine makers
              are hanging back from e-sales but
              are increasing the information
              available to processors using
              the Web.”

              Source: Modern Plastics - May 2001
         Collins & Aikman
 Global Supply Chain Management




ISTMA CONFERENCE

           QUESTIONS


            Joseph P. Robich
      Collins & Aikman Sr. Vice President
Global Procurement & Supply Chain Management