infor industry point of view: automotive tier 1 suppliers...source: first research, automobile parts...

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Value Engineering

Infor Industry Point of View: Automotive Tier 1 Suppliers


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Table of Contents

Industry Opportunities

Industry Overview

Customer Success Stories

Industry Analysis

Solution Overview

Next Steps



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


Infor Confidential

Source: First Research, Automobile Parts Manufacturing; Infor Value Engineering Analysis

Industry Trends

Trends

Globalization:

To compete globally, companies are

merging, forming partnerships, or

creating joint ventures to expand

international distribution and realize

economies of scale.

Collaboration among Stakeholders:

Technology innovations are triggering

business changes, as suppliers are

collaborating both within the industry

and with technology companies to draft

standards for emerging technologies.

Improving Fuel Efficiency :

With increasing consumer demand

and government regulation, suppliers

are developing new technologies to

improve fuel efficiency and reduce

vehicle emissions.

R&D Shifts to Suppliers: Auto

manufacturers concentrate on styling,

marketing, and engines. This leads the

needs for parts suppliers to focus on

advanced technology in developing

auto components.


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Business Challenges


The increasing sophistication

of car components forces

suppliers to upgrade their

product lines with more

research and engineering

techniques.

Engineering Expertise

The auto industry depends on

a favorable economy, relying

on personal income and

employment levels. Due to

the scale of operations and

wide-ranging supply chains, it

is difficult for suppliers to

adjust to shifts in consumer

demand.

Cyclical Demand

The price of steel, a primary

raw material used in auto part

manufacturing, can rise or fall

by more than 30 percent per

year. Auto part production

facilities are moving to foreign

locations where steel prices

and supplies are stable.

Raw Material Price Volatility

To cut costs, companies are

increasingly deploying used

parts in repairing moto-

vehicles, cutting into new auto

part sales.

Competition from Used Parts


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Executive Priorities


•  Reducing Manufacturing Costs: Parts suppliers have

been pressured by automotive

companies for lower prices. To

comply, companies need to

focus on improving operating

efficiency to contain costs.

§  Exploring Non-

Automotive Markets:

Expand the customer base into

non-automotive markets, such

as the aircraft industry, to

diversify and improve the

bottom-line.

Chief Executive Officer

•  Optimizing Working Capital: Significant capital

requirements of parts

manufacturers require

expertise in cash flow

management.

•  Negotiating Contracts

with Suppliers: Operational efficiencies can

be achieved through

management of raw material

suppliers contracts.

Chief Financial Officer

•  Manufacturing Automation: Increase the

automation of production in

order to maximize operating

efficiencies.

•  Streamlining Logistics

Systems: Minimize

inventories through expertise

in shipment scheduling, using

integrated computer systems

with those of their suppliers

and customers.

Chief Information Officer

§  Negotiating Contracts with Major Customers: Auto parts

suppliers depend on a few large

customers for the majority of their

business. Supply contracts are

often awarded several years

before the start of production.

§  Training Production

Workers: Continuous

automation requires training

workers on new systems and

processes.

VP S&M and HR



Table of Contents

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Industry Overview


Industry Analysis

Solution Overview

Next Steps


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Telematics

Integration of automotive telematics,

technology that provides in-car access to

communication networks, is expected to

increase in the coming years and could

provide growth opportunities.

Growing Market

Emerging markets has become a target

market for supplying and producing motor

vehicle parts and products, with growing

vehicle sales in these markets.

Green Technologies

Growing concerns over climate change and

energy dependency globally, has

accelerated the development of alternative

energy technologies.

Motorsports Affiliation

The auto aftermarket and motorsports

have teamed for mutual benefit by

providing parts, participants, and

sponsorships on the racetrack in exchange

for marketing, merchandising, and parts

testing.



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“The Automotive Value Chain”

Source: Infor Sales Portal https://salesportal.infor.com/Published%20Library/Channel%20Partner/Infographic_The%20Automotive%20Value%20Chain.pdf


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Opportunity Size Prevailing Challenges

Manufacturing Industry - Snapshot

Source: Infor Content Marketing http://www.infor.com/content/brochures/turning-challenges-into-opportunites.pdf/


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The Right Technology makes an Impact

Source: Infor Content Marketing http://www.infor.com/content/brochures/turning-challenges-into-opportunites.pdf/



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


Infor Confidential

Industry Trend Analysis (1/2)

0%

10%

20%

30%

2011 2012 2013 2014 2015

Revenue Growth

Industry Median Industry 1st Quartile

3%

6%

9%

12%

2011 2012 2013 2014 2015

Operating Margin


72%

77%

82%

87%

2011 2012 2013 2014 2015

COGS (% of Revenue)


4%

6%

8%

10%

2011 2012 2013 2014 2015

SG&A (% of Revenue)


The charts below highlight the industry trend (SIC: 3714) on key financial metrics:

Industry: Motor Vehicle parts and Accessories (SIC: 3714), Global | Sample Size: [210] Source: S&P Capital IQ; Value Engineering Analysis


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Industry Trend Analysis (2/2)

The charts below highlight the industry trend (SIC: 3714) on key financial metrics:

40

55

70

85

2011 2012 2013 2014 2015

Days Payables Outstanding


38

46

54

62

2011 2012 2013 2014 2015

Days Sales Outstanding


20

30

40

50

2011 2012 2013 2014 2015

Days in Inventory


3

4

6

7

2011 2012 2013 2014 2015

Fixed Asset Utilization


Inventory�

COGS Per Day

Payables �

Purchase Per Day

Receivables�

Revenue Per Day

Revenue�

Net PP&E

Industry: Motor Vehicle parts and Accessories (SIC: 3714), Global | Sample Size: [210] Source: S&P Capital IQ; Value Engineering Analysis



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


Infor Confidential

100,000+ Trucks, specialty

vehicles

Automotive

Did you know?

Industry

Membership

AIAG OESA MERA

AAIA AASA CLEPA

25k Suppliers use

Supplier Exchange

80% School buses assembled

80% Top Tier 1 Suppliers

100 Countries

16m Wheels a year

3000+ Automotive

suppliers


Infor Confidential 1Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential

AUNDE Brazil integrated its operations to create a leaner inventory thereby increasing revenues using Infor VISUAL and Infor Automotive Exchange.



Solution

Infor Automotive Exchange

Infor Automotive Exchange is a demand management solution for automotive suppliers that extends and complements traditional ERP order-to-cash capabilities by normalizing data across all customers

Company Profile

• AUNDE Brazil manufactures fabrics for vehicle interiors, including seat covers, car roofs, and door panels

• AUNDE, ISRI, and Esteban. The company, which began as Achter & Ebels, originally manufactured fabrics for clothes. In 1982, the increasing globalization of automotive customers led AUNDE to open its first international branch in Barcelona, Spain

Business Challenge

• Control the complex production process of more than 400 items, including design, dying, cutting, sewing, and finishing

• Manage production facilities to meet demand during record growth

• Replace individual spreadsheets with a centralized solution that would provide visibility and integrate processes across three manufacturing facilities in Brazil



Infor Automotive Exchange provides faster and more

accurate data collection and analysis, enabling us to make

better-informed decisions so we have less overtime

expenses and fewer accounting errors.”

Jose Carlos De Souza

AUNDE

www.aunde.com.br

Benefits Achieved

• Increased revenue by 15%

• Reduced inventory levels, increased productivity, and eliminated waste

• Integrated all manufacturing operations into one system, optimizing planning and control

www.aunde.com.br



LTH Castings benefits from lower total cost of ownership with Infor Automotive Exchange.



Heinze Kunststofftechnik has greater control over its operations due to better visibility thanks to Infor solutions.



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


Infor Confidential

Core CloudSuite

Micro-vertical Analytics

Implementation

Accelerator Industry business processes pre-configured database & solution

Infor CloudSuiteTM Automotive LN

Infor Ming.le™ Comprehensive solution for social

collaboration, process improvement and

contextual analytics

Warehouse Mobility

Supplier Exchange

Automotive Exchange

BI/Analytics

Budgeting & Planning

EAM

Time Track


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Infor CloudSuite Automotive

Holistic Enterprise Solution Connects your

Entire

Value Chain

•  Customers

•  Suppliers

•  Logistics

Providers

•  Sub-

Contractors


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Automotive

Order Processing

•  CRM

•  Quote/ Order Mgt.

•  Orders, lines and schedules

•  ATP/CTP

•  Pricing / Commissions

•  Order Configuration

•  EDI

Planning/ Scheduling

•  Forecasting & S&OP

•  Item Plans (APS/MRP)

•  Channel Planning (DRP)

•  Cross warehouse planning

•  Order pegging

•  Sourcing

•  Requisitions (MRO)

•  Purchase order s, line and

schedules

•  Vendor rating

•  SLAs

•  Approval workflows

•  Serial / Lot Control

•  Product Configuration

•  Production Costing

•  Shop Floor Control

•  Assembly Control

•  Subcontracting

•  As-built BOMs

•  Projects / Prototypes

•  Warehouse Management

•  Inventory control

•  Lot/serial number tracking

•  VMI

•  Direct material supply

•  Cross-docking

•  Freight Management

•  GL, A/P & A/R

•  Cash Management

•  Fixed Assets

•  Multi-currency

•  Consolidated financial

reporting

•  Localization support for

multiple countries

•  Specifications and sampling

plans

•  Quality inspections

•  Sample and Batch

management

•  Non-conformance and Material

Dispositioning

•  Calibrations of test instruments

•  Statistical Quality Control

Analysis

•  Corrective Action Plan

•  Quality Metrics and Reports

Purchase Order

Management

Manufacturing /

Shop Floor Control

Quality Warehouse / Inventory Finance

Cloudsuite Automotive


Infor Confidential

Tier 1

Suppliers

Automotive industry functionality built-in, not bolted on

•  OEM standards based EDI ( Cum accounting)

•  OEM Standard Labeling and returnable containers

•  Repetitive manufacturing

•  Supply Chain management – global sourcing

•  Program and project management ( APQP)

•  Supply Chain Collaboration ( MMOG / LE)

•  Quality management

Tier 1 Specialization



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


Infor Confidential

Next Steps

§  Document business objectives, pain points and areas for improvement

§  Benchmark business performance against industry peers

§  Compare the cost of on- premise vs. cloud deployment (TCO)

1 Value Assessment:

2 Technology Assessment:

§  Assess current infrastructure landscape

§  Evaluate integration, data migration, and security considerations

§  Identify optimal deployment strategy (cloud / hybrid / on-premise) and

build network topology

3 Solution Assessment: §  Select Infor solution set and create phased project roadmap

§  Compare current functionality against CloudSuite capabilities

§  Assess modifications (MODs) and determine dispositions


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This presentation is provided for informational purposes only and does not constitute a commitment in any way. All information, products and services described herein are subject to change in Infor’s sole discretion at

any time without notice.

Infor is not committing to develop or deliver any specified enhancement, upgrade, product, service or

functionality, even if such is described herein. Many factors can affect Infor’s product development plans and

the nature, content and timing of future product releases, all of which remain in Infor’s sole discretion.

Infor is not committing that any product or service will result in cost savings, return on investment or other

benefits, even if such is described herein. Many factors can affect actual cost savings, return on investment

or other benefits, and actual results may differ from any estimates provided by Infor.

Infor makes no representations or warranties of any kind with respect to the information herein, and expressly disclaims any liability with respect to this presentation or any information herein.

This presentation includes Infor confidential information and may not be reproduced or disclosed, in whole or

part, without the prior written consent of Infor.

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infor industry point of view: automotive tier 1 suppliers...source: first research, automobile parts...

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