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Supply Chain Management: Integration

Volkswagen AG

Markus Dittmann

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Profile & Facts Current supply chain: Recent examples of

integration Recommendation

Agenda

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Two primary divisions 324 group companies

Volkswagen AG

Automotive Brands

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Facts 2010

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1) Toy-ota

11.01%

2) G.M.10.90%

3) Volkswagen

9.44%

4) Hyundai7.41%

5) Ford6.42%

Others54.82%

Total Units Sold

1) Toyota2) G.M.3) Volkswagen4) Hyundai5) FordOthers

Global Market Share

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VW Group21.30%

PSA Group13.38%

RENAULT Group

10.23%GM Group

8.64%FORD8.05%

FIAT Group7.55%

BMW Group5.44%

DAIMLER4.85%

TOYOTA Group4.35%

Other16.20%

Total Units Sold 2010

VW GroupPSA GroupRENAULT GroupGM GroupFORDFIAT GroupBMW GroupDAIMLERTOYOTA GroupOther

European Market Share

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Financials

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Continued…

2010 2009 2008 2007100,000

105,000

110,000

115,000

120,000

125,000

130,000

135,000

Op. Revenue (Turnover)

2010 2009 2008 20070.00

0.10

0.20

0.30

0.40

0.50

0.60

ROI

2010 2009 2008 200705

1015202530354045

Cash to Cash cycle

2010 2009 2008 200740.00

42.00

44.00

46.00

48.00

50.00

52.00

54.00

Stock Turnover

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Examples of Integration

JIT II Supplier employees work at VW production and development sites and vice versa.

Electronic Collaboration ◦ B2B platform: “VW Group Supply”◦ CPFR: Integrated disposition system IDIS

Internal Integration◦ Modular Toolkit: MQB, MLB, MSB

VW Supply Chain

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Web based platform that governs all processes linking VW with its suppliers and partners

Constant improvement through dialog Increase efficiency Transparent processes for all parties involved Compatible with smartphones and tablets Takes into account the large diversity of suppliers and

partners

VW Group Supply

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Integrated Disposition System

Automatic replenishment system for all inventory Accessible by suppliers, partners, VW and dealers. Increase customer satisfaction Optimize spare part distribution

IDIS

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MQB – Modular Lateral Toolkit Supplies up to 43 models VW Up!, Skoda Citigo, Seat MiiMLB – Modular longitudinal

toolkit In use since 2007 A4, A5, A6, A7, A8, Bentley

Continental 2011, Porsche CajunMSB - Modular standard power

train toolkit First models expected in 2014 Panamera, 918 Spyder, Estoque,

Aventador

Modular Toolkit

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Calm internal rivalry between brands Strong disagreements in management Maintain customer and supplier focused web

tools

Recommendation

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