1 Tier 1 / Tier 2 relations: Are the roles changing? Alexandre Loire A.L.F.A Project Manager July, 5th 2007
2 1. Changes to roles in customer/supplier relations a - Distribution Channels Activities End customer Distribution Channels -Commercialisation -Sales -Services Manufacturer Time To obtain loyalty and efficiently manage the relationship with the customer in an international context
3 1. Changes to roles in customer/supplier relations b - The manufacturers : the heart of a stable market Activities Manufacturer - Knowledge of the order - General Conception - Final Assembly Focus on the heart of the matter Time
4 1. Changes to roles in customer/supplier relations c Manufacturer s policy for suppliers Activities Manufacturer - Conception, Manufacture, Module Assembly - Conception, Manufacture, Module Assembly Suppliers Tiers 1 n Time To give suppliers responsibility in an international context Integration of the concept of extended enterprise (by way of collaboration) Increasing innovation
5 2. Consequences in the automotive sector Reinforce the customer/supplier relationship (especially between Tier 1 and Tier 2) How? Suppliers adopting the policies of their customers Joint improvement in performance of QCD Follow-up and reinforced assistance of the customer Process of standardised exchanges and shared information systems
6 a What is GALIA? Non profit structure Founded in members 3 missions Steering Committee Executive Committee 2 PSA, 2 RENAULT, 10 Suppliers, 2 carriers or LSP 1 General Manager 4 Project Managers Logistics Committee B2B Activities Engineering Committee SCM (Supply Chain Management) Collaborative Engineering
7 a bis What is GALIA? JAMA Odette Benelux AIA ACAROM J B,NL CZ R OSD T GALIA SMMT F UK AIAG VDA D Odette Sweden S ANFAC E IAPMA US Ir
8 b Challenges for Tier 2 A major fact : Globalization and multiplication of economical exchanges Challenges for Tier 2 NTIC are mandatory for the survival of companies whatever their size or their position in the supply chain. All companies are linked throughout the supply chain : adaptability to evolutions of each company is the key to efficiency, performance and durability of the whole chain.
9 c A solution : A.L.F.A Project and its financial approach A.L.F.A. is a project to support the 2 nd Tier suppliers in their appropriation of basic PC tools for a quick, safe and at reasonable costs communication with their own suppliers and customers. T I E R T I E R 1 80% of the support is funded by the French government and the regions 2
10 d A.L.F.A Project: Tools Based upon standards that the automotive industry has developed and deployed over the last 15 years. Suggested tools and methodologies : Enterprise Resource Program (ERP) EDI Communication Web-EDI Service Web Site Portal Web-conferencing service ENX connection (private, secure and high speed Internet network) Co development of a vehicle (virtual engineering platform) Collaborative Work platform We are not looking for new solutions but just to share the experience.
11 e A.L.F.A Project: Implementation Phase (2006) National Strategic Committee National Steering Committee Reporting in GALIA Board Regional Steering Committee Pilot : Objective : 100 companies June 2007 : 135 companies in the process
12 f A.L.F.A Project : Situation in % «Engineering» PC Tools 3% 15% 0% 18% 48% Logistics PC Tools 12% 13% 7% 15% 17% 34% «B2B»PC Tools Web EDI Enterprise Resource Program (ERP) Portal ENX EDI Web site Web Conf. Collaborative Work platform
13 MGI COUTIER is a TIER 1 LOCATED WORLDWIDE involved in Automotive and Trucks Industry How to adapt companies processes in front of : The INCREASE of the RISK and the COMPLEXITY of the FLOW of GOODS and SHARED INFORMATIONS? The INCREASE of the COMPLEXITY of the TOTAL SUPPLY CHAIN, AT EACH STEP, UPSTREAM as well as DOWSTREAM? Promote the NTIC and WebEDI and EDI Solutions
14 Today s Implementation : 60% suppliers in Web EDI 40% suppliers in EDI 98% DELFOR 56% DESADV Benefits Natural Improvement of the SUPPLY CHAIN Automation of the Request of Goods. Direct integration in Data Processing of the SUPPLIER...and CUT OUT the GAP on QUANTITIES between Delivery / Receipt Notes and INVOICE
15 g A.L.F.A Project : Situation in 2007 E P P E P D Next steps P P A E P Additional actions Start new regions Decisions to be made D E A Under Study