outsourcing es4c9 supply chain management raj mamtora
TRANSCRIPT
OUTSOURCING
ES4C9 SUPPLY CHAIN MANAGEMENT
Raj Mamtora
CONTENTS 1. INTRODUCTION
2. COMPANY OVERVIEW
3. COMPANY OUTSOURCING
- WHAT AND WHERE
4. THE RISKS
5. IMPROVEMENTS
6. OUTSOURCING IN 5 YEARS
INTRODUCTION
Define: Outsourcing
“Outsourcing is when a business function, particular task, role or process is contracted out to a third party over a considerable period of time.”
Design Parts Assembly Distribution Dealer End User
Supplier Pie
SCM: OUTSOURCING
TYPICAL AUTOMOTIVE SUPPLY CHAIN
SUPPLY CHAIN MANAGEMENT
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Two primary reasons to outsource:• To lower the purchase price• To improve quality
COMPANY OVERVIEW
“MOTION EMOTION”
The group also manufactures automotive parts such as: Seats Doors Front-ends
The group primarily operates in Europe. It is headquartered in Paris, France and has 198,220 employees.
PSA Peugeot Citroen (Peugeot) is engaged in the design, development, manufacturing and sales of
passenger cars, light commercial vehicles, scooters, and motorcycles.
INTRODUCTION
SCM: OUTSOURCING
Acoustic packages Cockpits Exhaust systems
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PEUGEOT
SO WHAT DO THEY OUTSOURCE?
SCM: OUTSOURCING
Engine Category:- Inlet and outlet valves- Fuel injection systems- Air filters, oil filters and spark plugs- Car cylinder head blank, inlet pipes- Automatic gear case, aluminium alloy die- castings
- Gear case and bearings
Chassis and drive train parts category:- Shock absorbers- Alloy wheel- Clutch disks, facing, pads, brake hoses- ABS systems (antilock brake systems)- Aluminium
Body Parts Category:- Wiper blades- Auto lighting and bulbs- Rear mirrors
Other Products:- Electrical/electronic parts – non-durable and sporty accessories
- Auto care chemicals such as wax and rust-proofing solutions
- Tyres
As well as the company outsourcing majority of the components for the production of a vehicle as shown on the left, typical business processes are also outsourced such as:
Human resources –
Customer care call centres –
Detailed product development –
Information Technology Services –
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PEUGEOTSCM: OUTSOURCING
OUTSOURCING LOCATIONS
Key:Manufacturing PlantsComponents and Casting PlantsAssembly Sites 4
PEUGEOTSCM: OUTSOURCING
RISKS INVOLVED?
• Care with taking outsourcing to emerging markets - Culture• An obvious risk relating to a problem that many of us face –
Increased fuel price!• Communication• Foreign exchange currency.
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PEUGEOTSCM: OUTSOURCING
IMPROVEMENTS?
• Further rationalise the supply base
- Currently 200-250 Automotive orientated ESP’s
• Carry out appropriate research with emerging markets
• Cost driven outsourcing must be well defined
- set of rules and processes based on KPI
• Take carbon footprint into account.
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OUTSOURCINGSCM: OUTSOURCING
THE NEXT 5 YEARS
• Will fuel prices really become an issue?
- Local outsourcing becoming dominant - Less developed countries are coming up in the world
• Global outsourcing has hit a plateau
• Outsourcing will be location based - Places like Japan are still recovering from the Earthquake - Will the $157 billion budget for rebuilding allow for Japan to recover within 5 years?
2007 2008 2009 20100
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150000
200000
250000
300000
350000
Total Revenuein $Million
Peugeot Toyota
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OUTSOURCING
THANK YOU FOR LISTENINGANY QUESTIONS
RAJ MAMTORA