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1 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Value Engineering
Infor Industry Point of View: Automotive Tier 1 Suppliers
2 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 2
Table of Contents
Industry Opportunities
Industry Overview
Customer Success Stories
Industry Analysis
Solution Overview
Next Steps
3 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 3
Table of Contents
Industry Opportunities
Industry Overview
Customer Success Stories
Industry Analysis
Solution Overview
Next Steps
4 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Source: First Research, Automobile Parts Manufacturing; Infor Value Engineering Analysis
Industry Trends
Trends
Globalization:
To compete globally, companies are
merging, forming partnerships, or
creating joint ventures to expand
international distribution and realize
economies of scale.
Collaboration among Stakeholders:
Technology innovations are triggering
business changes, as suppliers are
collaborating both within the industry
and with technology companies to draft
standards for emerging technologies.
Improving Fuel Efficiency :
With increasing consumer demand
and government regulation, suppliers
are developing new technologies to
improve fuel efficiency and reduce
vehicle emissions.
R&D Shifts to Suppliers: Auto
manufacturers concentrate on styling,
marketing, and engines. This leads the
needs for parts suppliers to focus on
advanced technology in developing
auto components.
5 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Business Challenges
Source: First Research, Automobile Parts Manufacturing; Infor Value Engineering Analysis
The increasing sophistication
of car components forces
suppliers to upgrade their
product lines with more
research and engineering
techniques.
Engineering Expertise
The auto industry depends on
a favorable economy, relying
on personal income and
employment levels. Due to
the scale of operations and
wide-ranging supply chains, it
is difficult for suppliers to
adjust to shifts in consumer
demand.
Cyclical Demand
The price of steel, a primary
raw material used in auto part
manufacturing, can rise or fall
by more than 30 percent per
year. Auto part production
facilities are moving to foreign
locations where steel prices
and supplies are stable.
Raw Material Price Volatility
To cut costs, companies are
increasingly deploying used
parts in repairing moto-
vehicles, cutting into new auto
part sales.
Competition from Used Parts
6 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Executive Priorities
Source: First Research, Automobile Parts Manufacturing; Infor Value Engineering Analysis
• Reducing Manufacturing Costs: Parts suppliers have
been pressured by automotive
companies for lower prices. To
comply, companies need to
focus on improving operating
efficiency to contain costs.
§ Exploring Non-
Automotive Markets:
Expand the customer base into
non-automotive markets, such
as the aircraft industry, to
diversify and improve the
bottom-line.
Chief Executive Officer
• Optimizing Working Capital: Significant capital
requirements of parts
manufacturers require
expertise in cash flow
management.
• Negotiating Contracts
with Suppliers: Operational efficiencies can
be achieved through
management of raw material
suppliers contracts.
Chief Financial Officer
• Manufacturing Automation: Increase the
automation of production in
order to maximize operating
efficiencies.
• Streamlining Logistics
Systems: Minimize
inventories through expertise
in shipment scheduling, using
integrated computer systems
with those of their suppliers
and customers.
Chief Information Officer
§ Negotiating Contracts with Major Customers: Auto parts
suppliers depend on a few large
customers for the majority of their
business. Supply contracts are
often awarded several years
before the start of production.
§ Training Production
Workers: Continuous
automation requires training
workers on new systems and
processes.
VP S&M and HR
7 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 7
Table of Contents
Infor Confidential
Industry Opportunities
Industry Overview
Customer Success Stories
Industry Analysis
Solution Overview
Next Steps
8 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Industry Opportunities
Telematics
Integration of automotive telematics,
technology that provides in-car access to
communication networks, is expected to
increase in the coming years and could
provide growth opportunities.
Growing Market
Emerging markets has become a target
market for supplying and producing motor
vehicle parts and products, with growing
vehicle sales in these markets.
Green Technologies
Growing concerns over climate change and
energy dependency globally, has
accelerated the development of alternative
energy technologies.
Motorsports Affiliation
The auto aftermarket and motorsports
have teamed for mutual benefit by
providing parts, participants, and
sponsorships on the racetrack in exchange
for marketing, merchandising, and parts
testing.
Source: First Research, Automobile Parts Manufacturing; Infor Value Engineering Analysis
9 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
“The Automotive Value Chain”
Source: Infor Sales Portal https://salesportal.infor.com/Published%20Library/Channel%20Partner/Infographic_The%20Automotive%20Value%20Chain.pdf
10 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Opportunity Size Prevailing Challenges
Manufacturing Industry - Snapshot
Source: Infor Content Marketing http://www.infor.com/content/brochures/turning-challenges-into-opportunites.pdf/
11 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
The Right Technology makes an Impact
Source: Infor Content Marketing http://www.infor.com/content/brochures/turning-challenges-into-opportunites.pdf/
12 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 12
Table of Contents
Industry Opportunities
Industry Overview
Customer Success Stories
Industry Analysis
Solution Overview
Next Steps
13 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Industry Trend Analysis (1/2)
0%
10%
20%
30%
2011 2012 2013 2014 2015
Revenue Growth
Industry Median Industry 1st Quartile
3%
6%
9%
12%
2011 2012 2013 2014 2015
Operating Margin
Industry Median Industry 1st Quartile
72%
77%
82%
87%
2011 2012 2013 2014 2015
COGS (% of Revenue)
Industry Median Industry 1st Quartile
4%
6%
8%
10%
2011 2012 2013 2014 2015
SG&A (% of Revenue)
Industry Median Industry 1st Quartile
The charts below highlight the industry trend (SIC: 3714) on key financial metrics:
Industry: Motor Vehicle parts and Accessories (SIC: 3714), Global | Sample Size: [210] Source: S&P Capital IQ; Value Engineering Analysis
14 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Industry Trend Analysis (2/2)
The charts below highlight the industry trend (SIC: 3714) on key financial metrics:
40
55
70
85
2011 2012 2013 2014 2015
Days Payables Outstanding
Industry Median Industry 1st Quartile
38
46
54
62
2011 2012 2013 2014 2015
Days Sales Outstanding
Industry Median Industry 1st Quartile
20
30
40
50
2011 2012 2013 2014 2015
Days in Inventory
Industry Median Industry 1st Quartile
3
4
6
7
2011 2012 2013 2014 2015
Fixed Asset Utilization
Industry Median Industry 1st Quartile
Inventory�
COGS Per Day
Payables �
Purchase Per Day
Receivables�
Revenue Per Day
Revenue�
Net PP&E
Industry: Motor Vehicle parts and Accessories (SIC: 3714), Global | Sample Size: [210] Source: S&P Capital IQ; Value Engineering Analysis
15 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 15
Table of Contents
Industry Opportunities
Industry Overview
Customer Success Stories
Industry Analysis
Solution Overview
Next Steps
16 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
100,000+ Trucks, specialty
vehicles
Automotive
Did you know?
Industry
Membership
AIAG OESA MERA
AAIA AASA CLEPA
25k Suppliers use
Supplier Exchange
80% School buses assembled
80% Top Tier 1 Suppliers
100 Countries
16m Wheels a year
3000+ Automotive
suppliers
17 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 1Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential
AUNDE Brazil integrated its operations to create a leaner inventory thereby increasing revenues using Infor VISUAL and Infor Automotive Exchange.
18 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 2Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential
Solution
Infor Automotive Exchange
Infor Automotive Exchange is a demand management solution for automotive suppliers that extends and complements traditional ERP order-to-cash capabilities by normalizing data across all customers
Company Profile
• AUNDE Brazil manufactures fabrics for vehicle interiors, including seat covers, car roofs, and door panels
• AUNDE, ISRI, and Esteban. The company, which began as Achter & Ebels, originally manufactured fabrics for clothes. In 1982, the increasing globalization of automotive customers led AUNDE to open its first international branch in Barcelona, Spain
Business Challenge
• Control the complex production process of more than 400 items, including design, dying, cutting, sewing, and finishing
• Manage production facilities to meet demand during record growth
• Replace individual spreadsheets with a centralized solution that would provide visibility and integrate processes across three manufacturing facilities in Brazil
19 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 3Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential
Infor Automotive Exchange provides faster and more
accurate data collection and analysis, enabling us to make
better-informed decisions so we have less overtime
expenses and fewer accounting errors.”
Jose Carlos De Souza
AUNDE
www.aunde.com.br
Benefits Achieved
• Increased revenue by 15%
• Reduced inventory levels, increased productivity, and eliminated waste
• Integrated all manufacturing operations into one system, optimizing planning and control
www.aunde.com.br
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Infor Confidential 1Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential
LTH Castings benefits from lower total cost of ownership with Infor Automotive Exchange.
21 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 1Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential
Heinze Kunststofftechnik has greater control over its operations due to better visibility thanks to Infor solutions.
22 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 22
Table of Contents
Industry Opportunities
Industry Overview
Customer Success Stories
Industry Analysis
Solution Overview
Next Steps
23 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Core CloudSuite
Micro-vertical Analytics
Implementation
Accelerator Industry business processes pre-configured database & solution
Infor CloudSuiteTM Automotive LN
Infor Ming.le™ Comprehensive solution for social
collaboration, process improvement and
contextual analytics
Warehouse Mobility
Supplier Exchange
Automotive Exchange
BI/Analytics
Budgeting & Planning
EAM
Time Track
24 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Infor CloudSuite Automotive
Holistic Enterprise Solution Connects your
Entire
Value Chain
• Customers
• Suppliers
• Logistics
Providers
• Sub-
Contractors
25 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Automotive
Order Processing
• CRM
• Quote/ Order Mgt.
• Orders, lines and schedules
• ATP/CTP
• Pricing / Commissions
• Order Configuration
• EDI
Planning/ Scheduling
• Forecasting & S&OP
• Item Plans (APS/MRP)
• Channel Planning (DRP)
• Cross warehouse planning
• Order pegging
• Sourcing
• Requisitions (MRO)
• Purchase order s, line and
schedules
• Vendor rating
• SLAs
• Approval workflows
• Serial / Lot Control
• Product Configuration
• Production Costing
• Shop Floor Control
• Assembly Control
• Subcontracting
• As-built BOMs
• Projects / Prototypes
• Warehouse Management
• Inventory control
• Lot/serial number tracking
• VMI
• Direct material supply
• Cross-docking
• Freight Management
• GL, A/P & A/R
• Cash Management
• Fixed Assets
• Multi-currency
• Consolidated financial
reporting
• Localization support for
multiple countries
• Specifications and sampling
plans
• Quality inspections
• Sample and Batch
management
• Non-conformance and Material
Dispositioning
• Calibrations of test instruments
• Statistical Quality Control
Analysis
• Corrective Action Plan
• Quality Metrics and Reports
Purchase Order
Management
Manufacturing /
Shop Floor Control
Quality Warehouse / Inventory Finance
Cloudsuite Automotive
26 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Tier 1
Suppliers
Automotive industry functionality built-in, not bolted on
• OEM standards based EDI ( Cum accounting)
• OEM Standard Labeling and returnable containers
• Repetitive manufacturing
• Supply Chain management – global sourcing
• Program and project management ( APQP)
• Supply Chain Collaboration ( MMOG / LE)
• Quality management
Tier 1 Specialization
27 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential 27
Table of Contents
Industry Opportunities
Industry Overview
Customer Success Stories
Industry Analysis
Solution Overview
Next Steps
28 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
Next Steps
§ Document business objectives, pain points and areas for improvement
§ Benchmark business performance against industry peers
§ Compare the cost of on- premise vs. cloud deployment (TCO)
1 Value Assessment:
2 Technology Assessment:
§ Assess current infrastructure landscape
§ Evaluate integration, data migration, and security considerations
§ Identify optimal deployment strategy (cloud / hybrid / on-premise) and
build network topology
3 Solution Assessment: § Select Infor solution set and create phased project roadmap
§ Compare current functionality against CloudSuite capabilities
§ Assess modifications (MODs) and determine dispositions
29 Copyright © 2016. Infor. All Rights Reserved. www.infor.com
Infor Confidential
This presentation is provided for informational purposes only and does not constitute a commitment in any way. All information, products and services described herein are subject to change in Infor’s sole discretion at
any time without notice.
Infor is not committing to develop or deliver any specified enhancement, upgrade, product, service or
functionality, even if such is described herein. Many factors can affect Infor’s product development plans and
the nature, content and timing of future product releases, all of which remain in Infor’s sole discretion.
Infor is not committing that any product or service will result in cost savings, return on investment or other
benefits, even if such is described herein. Many factors can affect actual cost savings, return on investment
or other benefits, and actual results may differ from any estimates provided by Infor.
Infor makes no representations or warranties of any kind with respect to the information herein, and expressly disclaims any liability with respect to this presentation or any information herein.
This presentation includes Infor confidential information and may not be reproduced or disclosed, in whole or
part, without the prior written consent of Infor.
Disclaimer and Statement of Confidentiality
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