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VON DER GRÜNEN WIESE DIGITALISIERUNG UND AUTOMATISIERUNG DES STRATEGISCHEN EINKAUFS UND SUPPLIER QUALITY MANAGEMENTS EINES NEUEN AUTOMOBILHERSTELLERS 24.03.2020, BME eLösungstage DIGITAL Natalie Leitner STRICTLY BUSINESS CONFIDENTIAL 1

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VON DER GRÜNEN WIESEDIGITALISIERUNG UND AUTOMATISIERUNG DES STRATEGISCHEN EINKAUFS UND SUPPLIER QUALITY MANAGEMENTS EINES NEUEN AUTOMOBILHERSTELLERS

24.03.2020, BME eLösungstage DIGITAL

Natalie Leitner

STRICTLY BUSINESS CONFIDENTIAL 1

WHO IS INEOS?

STRICTLY BUSINESS CONFIDENTIAL 2

WHAT’S OUR CORE BUSINESS?

STRICTLY BUSINESS CONFIDENTIAL 3

INEOS is a privately owned,

entrepreneurial, fast-paced organisation.

Founded in 1998 and led by Chairman, Sir

Jim Ratcliffe.

INEOS produces the raw materials that are

essential for a wide variety of industries,

including medicines, chemicals, plastic

components, textile, food, etc.

Automotive is currently the 4th largest end

product industry for INEOS with

applications in fuel and engine systems,

exterior, interior, electrical and safety

systems.

INEOS – THE BIGGEST COMPANY YOU NEVER HEARD OF

STRICTLY BUSINESS CONFIDENTIAL 4

WHAT ELSE?

STRICTLY BUSINESS CONFIDENTIAL 5

Recent business expansion outside of industries:

Acquisition of luxury British fashion brand Belstaff

£110m investment in Sir Ben Ainslie’s America’s Cup sailing team, INEOS Team UK

Acquisition of cycling Team SKY now Team INEOS

Sponsor of the 1:59 challenge with Eliud Kipchoge

Acquisition of first league Football Club of Nice

Principal partner of Mercedes-AMG Petronas Formula One team

STRICTLY BUSINESS CONFIDENTIAL 6

We dare to achieve

the impossible

We’re determined

We’re straightforward

OUR ATTITUDE

WHO IS INEOS AUTOMOTIVE?

STRICTLY BUSINESS CONFIDENTIAL 7

WHO IS THE SPONSOR OF INEOS AUTOMOTIVE?

STRICTLY BUSINESS CONFIDENTIAL 8

A new business created in 2017 by car

enthusiast and adventurer Sir Jim

Ratcliffe with a vision to produce a

stripped back, utilitarian 4x4 (‘Projekt

Grenadier’).

Fully funded with a £600 million

investment by the INEOS Group, INEOS

Automotive will start production of its

first vehicles in 2021.

WHERE IT ALL BEGAN

STRICTLY BUSINESS CONFIDENTIAL 9

In 2015 the idea to build a world-

class uncompromising 4x4 was

established over a pint at the

Grenadier pub in London.

Sir Jim Ratcliffe has now brought

together a passionate team of

experts and off-road enthusiasts to

set about creating a brand new,

old-souled utility 4x4.

This is where our incredible journey started!

WHAT IS THE GRENADIER?

STRICTLY BUSINESS CONFIDENTIAL 10

STRICTLY BUSINESS CONFIDENTIAL

A British-inspired, German engineered true working

vehicle, which can drive cross-country, pull a plough,

lead a safari, clear a minefield, cross a river and of

course - drive up to Buckingham Palace.

A stripped back, utilitarian, rugged off-roader for

those who depend on a 4x4.

We are building an uncompromising 4x4 for the world.

PRODUCT VISION

STRICTLY BUSINESS CONFIDENTIAL 12

Design: taking inspiration from iconic 4x4s from the past, the Grenadier has to look ‘cool’ and become the reference off-roader vehicle of the future

Off-road mobility: has to be best in class, the vehicle should help our customers achieve the toughest jobs

Reliability & Durability: a vehicle that is tough and resilient and never let our customers down. We’ll use technology that is proven and necessary

Value for money: the purchase of our vehicle shall remain accessible to our target audiences, on par with its competitors

DESIGN

OFF-ROAD MOBILITY

RELIABILITY & DURABILITY

STRICTLY BUSINESS CONFIDENTIAL 13

JELLY MOULD SUV’SWHAT DOES

EVERYONE ELSE DO?

“As mobility systems gain prominence, and vehicles

are programmed to drive themselves, can the soul of

the car endure?”

McKinsey & Co. wrote in a 2014 report titled “A Road Map to the Future of the Auto Industry.

SETTING UP PROCUREMENT, SCM AND SQE FROM SCRATCH

STRICTLY BUSINESS CONFIDENTIAL 14

STRICTLY BUSINESS CONFIDENTIAL

INEOS AUTOMOTIVE FOLLOWS AN INTEGRATED PARTNER MANAGEMENT APPROACH

Procurement, SCM and

Supplier Quality are

integrated in ONE

organization

Supplier collaboration

through one IT-platform

Holistic supplier evaluation

and development

Partners

Procurement

Supply

Chain

Management

Supplier

Quality

Engineering

STRICTLY BUSINESS CONFIDENTIAL

PROCUREMENT MODEL DRIVEN BY TRUE COLLABORATION

PARTNERING

Adding value

On eye-level collaboration

Open-minded regarding business

approachesPARTNERING

BEST COST

VALUE CHAIN

FIT BETWEEN

INEOS & PARTNERS

Reliability

Transparency

LEAN

Communication

FIT BETWEEN INEOS & PARTNERS

Holistic partner management

Constant dialogue on different levels

Ethical business practices

Simple, straightforward systems

Standardised contract landscape

BEST COST VALUE CHAIN

Competitive overall cost model

Constantly questioning and optimizing

the value chain

Development and investment to create

material and process improvement

STRICTLY BUSINESS CONFIDENTIAL

IMPLEMENTING A SUPPLIER COLLABORATION PLATFORM

STRICTLY BUSINESS CONFIDENTIAL

Supplier management tool from scratch

Organize procurement processes in a growing & decentralised team

Provide supplier related information/documents in one system

Gain transparency of all supplier related processes and communication

Implement digital workflows instead of excel spreadsheets and manual approvals

Provide procurement history in a system from day 1

THE APPROACH

STRICTLY BUSINESS CONFIDENTIAL

Use of best practice/automotive standards

Quick implementation

Lean project team, lean processes

No (over-) engineering and customizing

Maximum of flexibility

User-friendliness

Utilisation from day 1

Service Provider that acts as a partner

PLATFORM REQUIREMENTS

STRICTLY BUSINESS CONFIDENTIAL

AS CENTERPIECE

3-Apr-20

20

Quality Planning in Project Phase

ReportingTime Schedule / Milestone Tracking

APAP planning / status

Tooling status

PPAP

Quality Management in

Serial Phase

Supplier evaluation

Deviation management

Claim Management

PPAP/ Requalification

Initial information

from Supplier

Supplier Registration / RFI

Supplier Master Data

Certificates (Quality/Environment/etc.)

Supplier Classification & Status

RFQ / Quotations

Comparison Sheets

Contract Management

Procurement Phase

STRICTLY BUSINESS CONFIDENTIAL

Registration on invitation or self-registration

Supplier master data, contact persons and banking details

Self-questionnaire

Certificate upload for certificate management

Supplier status management

Interface to SAP for vendor creation/update

Update/creation after approval workflow

SUPPLIER MANAGEMENT

STRICTLY BUSINESS CONFIDENTIAL

SOURCING

Requisitions from Teamcenter PLM

RFQs plus related documents

Transmission of supplier quotes

Comparison sheets

STRICTLY BUSINESS CONFIDENTIAL

COLLABORATIONContract management

Supplier‘s contract status tracking (document upload)

Contract control

Part Maturity Management

Project Time Schedule

APQP Planning

Tool Tracking

PPAP

Supplier evaluation/development

Supplier rating, corrective actions etc.

Deviation management

Claim Management

PPAP/ Requalification

EXAMPLE: PART MATURITY MANAGEMENT IN SQE

STRICTLY BUSINESS CONFIDENTIAL 24

Regular update of Project Time Schedule, APQP, LOP

Project Time Schedule

APQP Planning

Contact List

List of open Points (LOP)

Feasibility Confirmation

2B Maturity check

Tool status management

Industialization planning

Sub supplier status

DV results

PPAP planning

Process realization

First of tool parts

PPAP realization

Release of sub-supplier

PV results

PPAP release/ confirmation

Process release

Change Management

Kick-off Meeting Prototype (2B) Pre-Production SOP

STRICTLY BUSINESS CONFIDENTIAL

EXAMPLE: APQP MONITORING

3-Apr-20strictly business confidential

25

STRICTLY BUSINESS CONFIDENTIAL

EXAMPLE: SUPPLIER MILESTONE TRACKING

3-Apr-20strictly business confidential

26

STRICTLY BUSINESS CONFIDENTIAL

EXAMPLE: INITIAL SAMPLE REPORT (VDA)

3-Apr-20strictly business confidential

27

STRICTLY BUSINESS CONFIDENTIAL

EXAMPLE: CONTRACT STATUS TRACKING

3-Apr-20strictly business confidential

28

STRICTLY BUSINESS CONFIDENTIAL

Small teams in a fast-growing organisation

Decentralised organisation of procurement team

Implementation of several other IT-systems in parallel

Focus is absolutely on “the vehicle” and getting suppliers onboard

MAIN CHALLENGES

STRICTLY BUSINESS CONFIDENTIAL 30

GRENADIER GOES ITS OWN WAY

BUILT ONPURPOSE

STRICTLY BUSINESS CONFIDENTIAL 31

WWW.INEOSGRENADIER.COM

THANK YOU!

STRICTLY BUSINESS CONFIDENTIAL 32

© Allocation Network GmbH

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