managing complex value chains by global …...zf friedrichshafen ag horst wiedmann, executive vice...

ZF Friedrichshafen AG

Horst Wiedmann, Executive Vice President, Leiter Strategische Materialwirtschaft und Zentrale Services ZF-Konzern

MOTION AND MOBILITY

Managing Complex Value Chains by Global Purchasing Teams

THE POWER OF2

© ZF Friedrichshafen AG, 2016 2 2016-04-19 Managing Complex Value Chains by Global Purchasing Teams

Agenda

1. ZF – The Power of ²

2. Consolidated Purchasing Organization “Best of Both”

3. Earn the right to be a Strategic Partner


ZF 2025

CONNECTIVITY

EFFICIENCY

ELECTRIFICATION

LIGHTWEIGHT

(Mega-)Trends ZF TRW

…

ZF 2025 – Our Strategy for Success!

- The 5 Pillars of ZF 2025 -

1. ZF – THE POWER OF 2


… brings together a broad, complementary portfolio of acknowledged

products including driveline, chassis, safety and electronic technologies

… is an R&D leader that benefits from global megatrends towards fuel efficiency, increased safety requirements and autonomous driving

… has a balanced regional and customer portfolio in both volume and

premium segments

… ideally addresses two of the most significant countries of the world:

US and China

… meets the increasing demand from OEMs* for integrated offerings

from their suppliers

The combined

company

of two successful automotive

suppliers

with pro forma revenues

of more than € 30 billion

(US$ 41 billion)

and 138,000 employees

ZF Friedrichshafen AG and TRW Automotive – the transaction follows a clear strategic rationale

* Original Equipment Manufacturers Source: IMO Turbo



ZF offers leading technology to address megatrends and strengthen its market position in the future

Central Functions

Regions

Automatic Transmissions

Manual Transmissions/ Dual

Clutch Transmissions

Axle Drives

Powertrain Modules

Electric Drive Technology

Die Casting Technology

Division Car Powertrain

Technology

Chassis Systems

Chassis Components

Suspension Technology

Division Car Chassis

Technology

Truck & Van Driveline

Technology

Axle & Transmission Systems

for Buses and Coaches

CV Chassis Modules

CD Damper Technology

CV Powertrain Modules

Division Commercial Vehicle

Technology

Off-Highway Systems

Test Systems

Special Driveline Technology

Marine Propulsion Systems

Aviation Technology

Wind Power Technology

Division Industrial

Technology

Braking Systems

Steering Systems

Commercial Steering Systems

Occupant Safety Systems

Electronics

Body Control Systems

Engineered Fasteners &

Components

Parts & Service

Active & Passive Safety

Technology

Corporate Functions

Board of Management: Dr. Stefan Sommer (CEO), Dr. Konstantin Sauer, Jürgen Holeksa, Michael Hankel, Wilhelm Rehm, Rolf Lutz, Dr. Franz Kleiner, Peter Lake

Board of Management ZF Friedrichshafen AG

ZF Services

Electronic Systems

Electric Drive Technology

E-Mobility Project House

Division E-Mobility1

1 From 01/2016 on


Source: IMO Turbo


FUEL EFFICIENCY SYSTEMS AND

SOLUTIONS

…TO ADDRESS AUTOMOTIVE

MEGATRENDS.

95g/km AVERAGE CO2

FLEET EMISSION

IN THE EU BY 2020

AUTONOMOUS

DRIVING*

SAFETY SYSTEMS*

€36bn IN 2020 – 4.8 TIMES

TODAY’S MARKET

VOLUME FOR

AUTONOMOUS

DRIVING

€47bn IN 2020 – 3.9 TIMES

TODAY’S MARKET

VOLUME FOR

CONNECTED

SAFETY

Combined, we offer leading technology to address megatrends and strengthen our market position in the future

1 PWC, Strategy&, Center of Automotive

Management (CAM): Connected Car 2014,

http://pwc.to/1GGRCeN


Source: IMO Turbo


A strong new player The Power of 2 – facts and figures

2015 YEAR OF

INTEGRATION

230 LOCATIONS

WORLDWIDE

40 DIFFERENT

COUNTRIES

134K EMPLOYEES

IN TOTAL

71K 63K

13.0 € BILLION

18.4 € BILLION

2014 SALES

720 € MILLION

891 € MILLION

2014 R&D

2014 Purchasing

(controllable spend)

7.8 € BILLION

9.9 € BILLION



Integration

Management Office

Turbo (IMO)

Operational

project

mgmt.

Steering committee

Chief Integration

Management Officer

Go-to-market Technology/Future

Products Delivery Engine Enablers

IT

Gov.

functions

Finance

HR

Quality

Material

Mgmt.

Opera-

tions

Elec-

tronics

Chassis

Cross

div. R&D

After-

market

Corp.

Develop.

Sales

All integration activities are organized via the Integration Management Office


Source: IMO Turbo


The integration process continues to follow clear prioritization guidelines

THREE PHASES: FROM DAY ONE TO FULL INTEGRATION IN 3–5 YEARS

ADDITIONAL

DIVISION

PROJECT-BASED

COLLABORATION

STRUCTURAL

INTEGRATION

Technology and Future Products

Complementary portfolios, technologies and R&D capabilities

Go-to-Market

Enhanced regional and customer access

Our core principles

BUILD ON STRENGTH

SET THE RIGHT PACE

STAY FOCUSED

Enablers

Efficient business operations to keep the company agile

Delivery Engine

Lean processes to unfold economies of scale


Source: IMO Turbo


Agenda





Combination of MM Organizations must follow the Principle…

... „Best of both – THE POWER OF2“

Flat hierarchies, clear responsibilities, simple structures and speed

Well-grounded, sustainable, transparent, reconciled decisions, efficient processes

One Face to the Supplier (reconciled and harmonized information flow to the Supplier)

2. CONSOLIDATED PURCHASING ORGANIZATION “BEST OF BOTH”


In 2015 joint teams align the requirements according the Principle “Best of both – THE POWER OF 2”

2015: Tandem Teams From 2016: Joint Materials Management Organization

Clear responsibility and one line of power!

2. CONSOLIDATED PURCHASING ORGANIZATION “BEST OF BOTH”


Agenda





Thank you very much for your attention!

managing complex value chains by global …...zf friedrichshafen ag horst wiedmann, executive vice...

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