Peter Koudal Director Deloitte Research Deloitte Services LP

Peter Koudal Director Deloitte Research Deloitte Services LP

Synchronizing the Global Supply Chain Mastering Complexity in the Automotive Industry Peter Koudal Director Deloitte Research Deloitte Services LP May 17, 2007

Participate in global automotive benchmark research • Benchmark against relevant peer groups and high-performing companies • Receive a complimentary, confidential, tailored company benchmark report • Benchmarking – Global Supply Chain and Innovation, and Global Service and Parts Management • • • Strategies Capabilities Operations Technologies Operational Performance Business Performance • Contact: – Peter Koudal, pkoudal@deloitte. com – Steve Laughman, slaughman@deloitte. com Copyright © 2007 Deloitte Development LLC. All rights reserved. 3

Paradoxes of complexity in the automotive industry The Optimization Paradox The Customer Collaboration Paradox The Innovation Paradox The Flexibility Paradox The Risk Paradox Copyright © 2007 Deloitte Development LLC. All rights reserved. 4 Source: Deloitte Research

Paradoxes of complexity in the automotive industry The Optimization Paradox The Customer Collaboration Paradox The Innovation Paradox The Flexibility Paradox The Risk Paradox Copyright © 2007 Deloitte Development LLC. All rights reserved. 5 Source: Deloitte Research

Paradoxes of complexity in the automotive industry The Optimization Paradox The Customer Collaboration Paradox The Innovation Paradox The Flexibility Paradox The Risk Paradox Copyright © 2007 Deloitte Development LLC. All rights reserved. 6 Source: Deloitte Research

Paradoxes of complexity in the automotive industry The Optimization Paradox The Customer Collaboration Paradox The Innovation Paradox The Flexibility Paradox The Risk Paradox Copyright © 2007 Deloitte Development LLC. All rights reserved. 7 Source: Deloitte Research

Paradoxes of complexity in the automotive industry The Optimization Paradox The Customer Collaboration Paradox The Innovation Paradox The Flexibility Paradox The Risk Paradox Copyright © 2007 Deloitte Development LLC. All rights reserved. 8 Source: Deloitte Research

High Mastering complexity pays €$ Global Value Chain Complexity €$ = 17% More Profitable (37%) (49% of Respondents) (7%) = 73% More Profitable €$ = 19% More Profitable Low €$ = Base Low Value Chain Capabilities Source: Deloitte Research Copyright © 2007 Deloitte Development LLC. All rights reserved. 9 High

Mastering complexity through synchronization Building a Profit Cycle • Synchronizing WITHIN: – Customer – Product – Supply Chain Customer • Market • Sell • Service Marketing & Sales Sup pl Cha y in – Product Development – Supply Chain – Marketing & Sales – Customer Service – Product Transition Supply Chain • Plan • Source • Make • Deliver Source: Deloitte Research Copyright © 2007 Deloitte Development LLC. All rights reserved. r me sto ce Cu ervi S • Synchronizing ACROSS: 10 De Pro ve du lo ct pm en t ct n u od tio Pr nsi a Tr Product • Innovate • Design • Develop • Transition

Synchronizing through excellence in … Visibility Flexibility Collaboration Technology Copyright © 2007 Deloitte Development LLC. All rights reserved. 11 Source: Deloitte Research

Synchronizing through excellence in … Visibility Flexibility Collaboration Technology Copyright © 2007 Deloitte Development LLC. All rights reserved. 12 Source: Deloitte Research

Synchronizing through excellence in … Visibility Flexibility Collaboration Technology Copyright © 2007 Deloitte Development LLC. All rights reserved. 13 Source: Deloitte Research

Synchronizing through excellence in … Visibility Flexibility Collaboration Technology Copyright © 2007 Deloitte Development LLC. All rights reserved. 14 Source: Deloitte Research

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