Infor Industry Point of View: OEM Vehicle Builders · and India for both sales and operations. Improved Vehicle Safety: Manufacturers are using technology to create additional safety

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Value Engineering

Infor Industry Point of View: OEM Vehicle Builders


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Table of Contents

Industry Opportunities

Industry Overview

Customer Success Stories

Industry Analysis

Solution Overview

Next Steps



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


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Source: First Research Automobile Manufacturing; Infor Value Engineering Analysis

Industry Trends

Trends

Overseas Trade:

Manufacturers are looking to

emerging economies such as China

and India for both sales and

operations.

Improved Vehicle Safety:

Manufacturers are using technology

to create additional safety features to

tap the competitive advantage and to

comply with safety regulations.

Alternative Fuels, Hybrids, and EVs:

Extensive R&D activity is underway on

alternative fuels, and demand for

hybrid and EVs are growing.

Wireless Device Integration:

Auto companies are integrating vehicle

systems with WiFi and wireless

devices, integrating technology to

create a personalized consumer

experience.


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Business Challenges


Manufacturers have been

challenged to improve fuel-

efficiency while keeping costs

down; focusing on

aerodynamic design, lighter

weight, and improved engine

performance.

Improving Fuel Efficiency

Auto manufacturers obtain

raw materials and component

from third-party vendors,

making them vulnerable to

supply disruptions. This risk

increases when parts

suppliers struggle amid

downturns in the automotive

market.

Material Shortages

Consumers are no longer

accepting standardized

products; instead wanting

products that satisfy their

specific demands. Good

design and specifications can

help volume producers

improve overall profitability.

Explicit Customer Requirements

Most independent dealers sell

both new and used vehicles.

Used vehicles represent a

significant portion of sales.

Competition from used trucks

and buses can limit

manufacturers' ability to raise

prices.

Competition from Used Vehicles


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Executive Priorities


•  Implementing a Global Strategy: Increasing

demand in emerging markets

is changing the nature of the

global automotive industry

.

§  Forecasting Demand:

Demand volatility results from

changing economic and

regulatory conditions.

Manufacturers must

understand customer

preferences and regulations to

anticipate shifts.

Chief Executive Officer

•  Financing Operations: Significant capital is required

for parts manufacturers to

manage uneven cash flows.

•  Managing Cash on Worldwide Basis: Manufacturers rely heavily on

imports to support operations,

requiring exchange rate

management to maintain

margins.

Chief Financial Officer

•  Improving Supply Chain Links: Leverage real-time

logistics systems between

suppliers and manufacturers to

achieve timely delivery of parts

to assembly plants.

•  Integrating Product

Development: Reduce time-

to-market through information

exchanges for design,

manufacturing, safety, and

marketing groups.

Chief Information Officer

§  Establishing Pricing Policies: Simplify complex

price structures (resulting from

discounts, rebates and

financing rates) offered by

dealers to consumers.

§  Improving Safety

Performance: The

industry's injury rate is almost

double the national average.

Improving safety performance

is a major opportunity to

increase worker productivity.

VP S&M and HR


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“The Automotive Value Chain”

Source: Infor Sales Portal https://salesportal.infor.com/Published%20Library/Channel%20Partner/Infographic_The%20Automotive%20Value%20Chain.pdf



Table of Contents

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Industry Overview


Industry Analysis

Solution Overview

Next Steps


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Aftermarket Services

Manufacturers offer services to owners, that

include extended warranties, extended and

roadside services, etc. Such services can

create an ongoing revenue stream that

doesn't depend on volatile new sales.

Government Market

Sales to the government sector (military

and other government branches) can

provide growth opportunities and protection

against the cyclical downturns in traditional

markets.

Natural Gas-Fueled Vehicles

Growing concerns over climate change and

energy dependency globally, has

accelerated the development of alternative

fuels like CNG and LNG.

Reducing Materials Costs

Manufacturers are increasingly using both

offshore parts sources and sub-assemblies,

to reduce material costs.



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Opportunity Size Prevailing Challenges

Manufacturing Industry - Snapshot

Source: Infor Content Marketing http://www.infor.com/content/brochures/turning-challenges-into-opportunites.pdf/


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The Right Technology makes an Impact

Source: Infor Content Marketing http://www.infor.com/content/brochures/turning-challenges-into-opportunites.pdf/


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Enterprise Technology Will Help Automotive Manufacturers Meet

The Key Future Challenges They Face

57% 57%

48%

40%

24%

Demand to launch products

quickly (before competitors)

Market demand for customized

and complex products

Market demand for lower cost

products

Market demand for higher

quality/higher performance

products

Compliance with regulations

and or industry standards

Top Pressures Facing Automotive Companies

Source: Aberdeen – Responding to the Customer-Driven Future in the Automotive Industry



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


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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


72%

77%

82%

87%

2011 2012 2013 2014 2015

COGS (% of Revenue)


4%

6%

8%

10%

2011 2012 2013 2014 2015

SG&A (% of Revenue)


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


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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


38

46

54

62

2011 2012 2013 2014 2015

Days Sales Outstanding


20

30

40

50

2011 2012 2013 2014 2015

Days in Inventory


3

4

6

7

2011 2012 2013 2014 2015

Fixed Asset Utilization


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



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


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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


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.



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



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



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


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


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Infor CloudSuite Automotive

Holistic Enterprise Solution Connects your

Entire

Value Chain

•  Customers

•  Suppliers

•  Logistics

Providers

•  Sub-

Contractors


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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


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One unified solution from one provider

Automotive Industry functionality

Beautiful and intuitive

Cost effective to maintain

Continuous innovation and upgrades

Speed of deployment

Exclusively offered on AWS

Designed for Automotive Businesses

Cloudsuite Automotive Summary


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OEM / Spec

Vehicle

Automotive industry functionality built-in, not bolted on

•  Configuration of Vehicles

•  Vehicle assemble in sequence

•  Supply Chain management ( In sequence supply)

•  OEM to Supplier EDI / Collaboration

•  Program and project management (APQP PPAP)

•  Quality management

•  Aftermarket After Sales Service / Service Parts

Tier 1 Specialization



Table of Contents


Industry Overview


Industry Analysis

Solution Overview

Next Steps


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


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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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Infor Industry Point of View: OEM Vehicle Builders · and India for both sales and operations. Improved Vehicle Safety: Manufacturers are using technology to create additional safety