GlobalSupplier - Daimler

South Africa 1 st Quarter 2003 

GlobalSupplier 

An Extended Enterprise®-Magazine 

for DaimlerChrysler suppliers and associates 

Clearly Like No Other 

Without a doubt, the Chrysler Pacifica sets new standards 

in innovation. In keeping with its importance, top celebrity 

Celine Dion serves as product spokesperson in an exciting 

US advertising campaign for the sports tourer. For further 

details on the new vehicle concept,as well as development 

highlights, see pages 4-7.

2 

Contents 

Cover Story 

Forum 

Project 

e-Business 

Process 

e- Business 

Economy 

Projects 

Empowerment 

News 

Global 

4 The Chrysler Pacifica Sports Tourer 


8 MDC Power: Forum for A9 Engine 

A New Road to Great Opportunities 

11 IPS: Conference: Production Material Suppliers 

for Passenger Car Powertrains 

Our Objective: Outstanding Performance 

13 IPS: Project Global Cutting Tool 

Learning With and From Each Other 

15 eDocs 

It’s a Big B2B Success 

16 GP & S: External Balanced Scorecard (EBSC) 

Ready to go in 2003 

South Africa 

17 partner.net 

External Balance Scorecard & Supplier Portal 

officially launched 

21 Like a breath of fresh air 

New Heavy Diesel Duty Test Centre in EL 

23 Exceptional Exports 

DaimlerChrysler’s record 2002 results 

25 Changing Mindsets 

Purchasing Services gets to grips with 

new processes 

28 Black Economic Empowerment 

Aligning BEE across the motor industry 

30 East London celebrates 

100 000th C-class unit for South Africa 

31 News briefs 

HIV/AIDS assistance 

CLK-CLASS launched 

DNI goes live

Editorial 

Global Activity: 

A Key Factor in Our Success 

To our Readers, 

The Detroit Motor Show, held in January 

each year, is always a clear indicator of the 

current situation in the automotive sector 

worldwide. The show is dominated by the 

latest trends in North America as well as 

opinions and conjecture about what the rest 

of the business year will bring. Daimler- 

Chrysler used this opportunity to inform the 

public about the state of the company and its 

future direction. 

In 2002, DaimlerChrysler’s Board of 

Management had signifi cantly increased 

its projected earnings several times. This 

optimism was due in no small part to the 

positive effects of the restructuring that’s 

been going on, particularly at Chrysler and 

Freightliner. In fact, in 2002 the Chrysler 

Group did better than originally expected. 

As Dr. Dieter Zetsche made clear, the 

break-even point that DaimlerChrysler had 

its sights set on ended up turning into an 

operating profi t. 

The passenger car business with the 

Mercedes-Benz brand, reorganised on 

January 1 as the Mercedes Car Group, 

did very well in the premium segment 

thanks to the second product offering 

begun last spring. With this, Mercedes 

Car Group was the main contributor of 

DaimlerChrysler’s 2002 earnings. As such, 

Prof. Jürgen Hubbert announced that this 

tried and true market-oriented model policy 

would continue with new models being 

launched. 

For DaimlerChrysler with all its Business 

Units, bringing new, persuasive vehicle 

models and designs on the market – is our 

answer in order to maintain our excellent 

position in a relentlessly competitive 

en vironment. 

In this issue of Global Supplier, we 

introduce you to the new Chrysler Pacifi ca 

Sports Tourer. It will debut in 2003 and 

will defi ne a whole new market segment. 

Another increasingly important factor in 

success is having a mutual approach 

to worldwide activities with our supplier 

partners. 

At the Detroit Motor Show we hosted an 

evening event for our suppliers with the 

3 

timely theme: “It’s Not The Same Without 

Our Partners.” 

The positive reception there demonstrated 

once again that these kinds of gatherings 

are an outstanding opportunity to get better 

acquainted, exchange thoughts and ideas on 

a personal level, as well as develop and 

extend global business relationships. 

If you want to fi nd out how we and 

our partners are closing ranks and coordinating 

our actions, take a look at the 

other articles in this issue. There are many 

activities happening at DaimlerChrysler that 

will require increased global co-operation 

and co-ordination with our supply partners. 

With these projects, we are pointing the way 

to the future. We’re also opening up new 

opportunities, particularly for our supply 

partners. To be successful in these 

competitive times, I think our theme, 

“It’s Not the Same Without Our Partners” 

underscores how important our supplier 

partners are to DaimlerChrysler. 

Gary C. Valade 

Executive Vice President, 

Global Procurement & Supply, 

DaimlerChrysler AG

44 Global ???????????? 

Cover Story 

The Chrysler Pacifica Sports Tourer 


20 years ago, when Chrysler introduced the pioneering segment of automotive 

transportation called the mini van, the much-lauded vehicle redefined the automotive 

marketplace. Nearly 10 million mini van sales later, Chrysler delivers the 

2004 Chrysler Pacifica — a breakthrough vehicle that defines a distinctly new 

segment: the “sports tourer.”

The 2004 Chrysler Pacifi ca is built at the same 

assem-bly plant in Windsor, Ontario, Canada, where 

the company builds its best-selling Chrysler and Dodge 

minivans. “Similar to our original minivan and Chrysler 

PT Cruiser, our all-new 2004 Chrysler Pacifi ca is yet 

another segment buster,” said Chrysler Group President 

and CEO Dieter Zetsche. “With innovative packaging 

and proportions, three rows of seats, car-like handling 

and all-wheel drive, there’s simply no other vehicle like 

it in the marketplace.” 

While the 2004 Chrysler Pacifi ca originates from the 

same plant as Chrysler and Dodge minivans, the 

vehicle is not built on any of the company’s short or 

long wheelbase minivan platforms. The 2004 Chrysler 

Pacifi ca is distinguished by its own new, unique 

platform, utilising the proven 3.5-liter V-6 engine which 

powers the Chrysler 300M. 

Chrysler Group’s new fl exible manufacturing system 

enables the company to build the groundbreaking 

Pacifi ca on the same line with its segment-leading 

minivans. This system helps bring new products like 

Pacifi ca to market faster, with better quality, less 

investment and minimal downtime. DCX invested $300 

million in the Windsor Assembly Plant for the all-new 

product. 

“Chrysler, the American brand known for innovative 

engineering and passionate break-through design, 

redefi nes personal and family transportation with 

Pacifi ca,” said Tom Marinelli, Vice President Chrysler/ 

Jeep® Global Brand Center. “Chrysler Pacifi ca is clearly a 

new interpretation of a premium six-passenger vehicle.” 

Different By Design The design and development of 

the Pacifi ca began with a clean sheet of paper several 

years ago and the intent of creating a unique vehicle 

with the distinct attributes of a sedan, a sport-utility and 

a minivan, according to Joe Dehner, Director-Exterior 

and Interior Design. 

The result is a premium six-passenger “sports tourer” 

with a unique profi le and a nearly fl at fl oor that provides 

a low step-over, unlike a traditional sport-utility or 

minivan. The Pacifi ca offers car-like handling, fi rst-class 

seating, second-and third row seats that fold fl at to the 

fl oor and all-wheel drive. 

All-Around Appeal Pacifi ca’s design appeals to those 

looking for an alternative to a car, SUV or minivan. 

The vehicle attracts drivers who have a sedan now, but 

would like more comfort and space. Current drivers of 

SUVs seek a vehicle like the Pacifi ca since it is easier to 

get into and easier to handle. Pacifi ca’s distinct design 

appeals to minivan drivers looking for a premium multipassenger 

people carrier. 

“Chrysler Pacifi ca’s exterior appearance is solid, 

confi dent and handsome – a look that promises to get 

you safely there and back,” said Trevor M. Creed, Senior 

Vice President of Design for the Chrysler Group. 

Pacifi ca’s sleek side profi le features 19-inch satin silver 

aluminum wheels fl ush with the body. The side view 

demonstrates a unique new proportion of glass to sheet 

metal that Chrysler designers feel is the coming trend. 

Pacifi ca’s integrated black spoiler extends the roofl ine in 

the rear view, enhances the aerodynamics and houses 

a full-width center-mounted brake light. Similar to the 

front of Pacifi ca, a substantial bumper offset is enhanced 

by satin silver accents integrated into the top corners, 

providing an elegant yet solid appearance. 

“The interior is a clean, sculptured, precise execution 

with an emphasis on high quality,” said Creed. 

“Regardless of whether you’re in the front or second 

row seats, you will have the feeling that you’re sitting 

in something special. Our objective was to give fi rst 

and second row occupants the feeling of traveling fi rst 

class.” 

All told, Pacifi ca clearly does not conform to the 

traditional design of a car, sport utility vehicle, or 

minivan — yet the break-through sports tourer features 

their best attributes. „ 

5 

The high-quality 6-person 

‘Sports Tourer’: as solid 

as it is elegant.

6 

Global Cover Story 

Safety, Security, Peace of Mind Early in vehicle 

development, the 2004 Chrysler Pacifi ca was assigned 

the internal code, “The Protector.” 

“‘The Protector’ is really about the driver and his or 

her responsibility for getting everybody home safely,” 

said Mike Donoughe, Vice President-Family Vehicle 

Product Team. “Chrysler Pacifi ca provides the tools the 

driver needs to fulfi ll that role. The fi rst-class seating 

position, cockpit-style controls, all-wheel-drive and 

sport-sedan handling help the driver avoid accidents. 

If a crash does occur, safety systems such as the 

three-row side curtain air bags help keep occupants 

safe.” 

Chrysler Pacifi ca is one of world’s fi rst vehicles to offer 

a three-row side curtain air bag that will be standard 

equipment on the vehicle which goes on sale in the 

spring of 2003. The ceiling-mounted side curtain air 

bag deploys downward and provides full-side window 

coverage. The air bag was tested to the voluntary 

standards set by the industry’s Side Air Bag Technical 

Working Group. In addition, Chrysler Group engineers 

also used the “pole test,” which mimics accidents such 

as hitting a telephone pole or tree, to evaluate the side 

air bag sensing system. These types of accidents may 

be severe because the crash forces are concentrated in 

a relatively small area of the vehicle. 

Chrysler Pacifi ca meets Chrysler engineers’ strict 

criteria for handling and stability. The unique sports 

tourer package is designed with a wide track for 

optimal handling and stability. Although the Chrysler 

Pacifi ca is taller than most passenger cars, its 

suspension, steering and ride are calibrated to achieve 

sport sedan cornering and handling qualities. Additionally, 

knowledge was shared across the Daimler- 

Chrysler family to ensure that the Chrysler Pacifi ca’s 

rear suspension incorporates “best practices” in 

technology and design. 

“Chrysler Pacifi ca does not share components, but it 

does share a common rear suspension design architecture 

with the Mercedes-Benz E-Class,” Donoughe said. 

“Not only did we benefi t from adopting the suspension 

design, but Chrysler Pacifi ca also benefi tted from 

undergoing development testing in the Daimler- 

Chrysler Driving Simulator in Berlin.” 

Chrysler Pacifi ca’s advanced restraint system 

encompasses the seat belts, air bags and sensors 

to optimise occupant protection in the event of 

a crash. In addition to the side curtain air bag, 

Chrysler Pacifi ca also provides the fi rst Chrysler 

Group infl atable knee blocker. Located just below the 

steering column, the knee blocker helps to reduce 

potential leg injuries in a crash. 

Supplier Breaks New Ground with the Chrysler 

Pacifi ca Entertainment System The Infi nity 

Intermezzo 5.1 multi-channel audio system available 

in the 2004 Pacifi ca sets a new standard in sound 

system technology for the automotive marketplace. 

A team from Harman/Becker Automotive Systems 

collaborated on the comprehensive and integrated 

Infi nity Intermezzo 5.1 system. Along the way, the 

project emerged as “proof positive” of success in 

Chrysler Group’s all-important supplier value drivers. 

System Features Harman/Becker Automotive 

Systems supplies the digital amplifi er – the “heart” 

of the system which provides 385 watts of power 

to eight speakers utilising their Ceramic Metal 

Matrix Diaphragm technology (CMMD) — among the 

fi rst automotive applications of this technology. An 

eight-inch sub-woofer in a tuned 14-liter enclosure 

provides outstanding bass response. 

This fully integrated system moves the perceived 

location of the sound source away from the speakers, 

giving the impression of a larger space, or a 

360-degree “en velope” of sound. Each audio source (an 

AM, FM, CD, cassette radio by Alpine, and a 6 disc 

CD/DVD player by Mitsubishi) plays in realistic multichannel 

“surround” sound with outstanding spatial 

depth and a natural sound stage. The system delivers 

a quality entertainment experience at each location – 

fi rst class seating at every row. 

The audio system interfaces with Alpine’s Navigation 

system announcements and JCI’s hands-free cellular 

phone module. The rear ceiling mounted seven-inch 

LCD display screen by Visteon provides multi-media 

video capability. 

The team at Harman/ 

Becker worked closely with 

the Chrysler Group and conducted 

numerous equaliser 

tests for the Pacifica Infinity 

Intermezzo 5.1 entertainment 

system. These efforts 

paid off well with an ingeniously 

refined multi-channel 

system featuring digital Surround 

Sound, a first in the 

Chrysler Group.

2004 Chrysler Pacifica – Key Suppliers 

Chrysler Group’s suppliers played a critical role in the development 

of the 2004 Chrysler Pacifica. It’s Chrysler Group’s goal 

to develop an “All Star” team every time it selects suppliers 

for a product program. 

ADAC 

Door Handles 

Alpine 

Navigation System 

Autoliv 

Seat Belts, Airbags, 

Steering Wheel 

Behr/Dayton 

HVAC 

Benteler 

Suspension Module 

Bosch 

Brakes 

Brose 

Window Regulators 

C-MAC Invotronics 

Power Liftgate Module 

Collins & Aikman 

Console Assembly 

Continental Teves 

ABS Control Unit 

Delphi 

Power Liftgate 

About Harman/Becker 

Denso 

Wiper Module and Blades, 

Engine Cooling Module, 

Instrument Cluster 

Gentex 

Rearview Mirror 

Getrag Gears 

PTU 

GKN 

Halfshafts 

Guardian 

Windshield, Glass Modular 

Harman/Becker 

Audio System 

Hella 

Headlamps 

Intier Automotive 

Seats 

ITT 

Brake Tubes 

Johnson Controls 

Overhead System 

Harman/Becker Automotive Systems is part of Harman International, 

manufacturers of the Harman Kardon, JBL, Infinity, 

Revel, Audioaccess, Lexicon, Mark Levinson, Madrigal Imaging 

and Proceed brands. 

Facilities are located in North America, Europe and Asia 

which permits the company to optimise the production process 

consistent with demanding quality requirements. 

The supplier utilised effective project management in this 

program, dedicating specific teams to develop the amplifier, 

speaker system and in-vehicle acoustics. A Harman/Becker 

program manager, who co-ordinated efforts with Chrysler 

Group engineers, directed the teams. 

KSR 

Adjustable Accelerator 

Pedal 

LDM 

Front & Rear Fascias 

Lear 

Door & Hard Trim 

Lowell 

Exterior Mirrors 

Meridian 

Taillamps 

Meritor 

Coil Springs rear 

Meritor Roof Systems 

Sunroof 

Michelin 

Tires 

Mitsubishi und Alpine 

Radios 

Monroe 

Struts 

Mubea 

Coil Springs front 

PPG 

Paint 

Sachs 

Shocks 

Siemens 

Remote Keyless Entry 

Sirius 

Satellite Radio Provider 

UBE 

Wheels 

Waterville TG 

Weatherstrip 

Yazaki 

Wiring Harness 

Delivering Technology, Quality Alan Boase, 

Manager of Audio, Telematics Safety Systems explains 

how the quality challenge was met: “This class of 

vehicle demands a technologically advanced in-car 

entertainment system. The team from Harman/Becker 

was uniquely qualifi ed to bring a home-theater 

experience into the Pacifi ca. Experts from both their 

home entertainment division and their automotive 

groups created an intelligent multi-channel audio 

system and a fi rst for Chrysler Group – digitally 

processed surround sound.” 

“Throughout the Pacifi ca program, the supplier 

stayed fi rmly focused on innovative technology and 

outstanding quality,” adds James Jurkiewics, Senior 

Product Design Engineer. “Harman/Becker brought 

new tools and processes to Pacifi ca, conducting more 

than twice as many equalisation sessions for an 

optimal surround sound experience. The result is an 

outstanding level of performance and functionality.” 

As Brian Cottreau, Senior Buyer, Electrical/Electronics 

concludes: “This was a truly collaborative effort as 

specifi cations evolved. Even with aggressive project 

goals, the supplier delivered quality, competitivelypriced 

parts at each phase.” 

7 

The Pacifica – the exciting 

alternative to a passenger 

car, an SUV or a minivan

8 

Global Forum 

MDC Power Forum for A9 Engine 

A New Road to Great 

On November 18-20, 2002, a forum on a new and different approach to 

cooperative vehicle development was held in Erfurt: MDC Power GmbH. 

MDC Power GmbH is the joint venture founded by smart and Mitsubishi 

that runs the newly completed engine plant in Kölleda. The forum 

had invited about 200 guests involved in the new A9 engine project, 

including European and Japanese suppliers as well as employees of 

DaimlerChrysler, Mitsubishi and Ned-Car, the jointly operated assembly 

plant in the Netherlands. The significant thing about this forum, which 

included a tour of the Kölleda plant, was that participants in the joint 

project were informed about the next steps in the first project undertaken 

by the global alliance between DaimlerChrysler and Mitsubishi: 

the ‘New Compact Car’ (NCC) project. 

* See Global Supplier, 3rd Quarter 2002, 

Issue No. 11, pp. 24-25. 

The head of the purchasing office 

in Japan, Christoph Dörr (far left), 

skillfully hosted the discussion session. 

Thomas Uhr, Volker Stauch, 

Harald Bölstler and Seiichi Ohta 

(from left to right) were ready and 

willing to answer questions.

Opportunities 

Speaking in his capacity as a head of the A9 

Engine Steering Committee, Volker Stauch, 

who is also the spokesperson for Powertrain 

by Materials Purchasing of Mercedes Car 

Group (MEP) and head of the Untertürkheim 

plant, left no doubt about the special signifi - 

cance of this forum. In his opening remarks, 

he strongly emphasised the “new road being 

taken” by the A9 engine project. For this 

reason, he noted, “this vehicle and engine 

project attracted the particular attention of 

the management at both DaimlerChrysler 

and Mitsubishi right from the very start.” 

Two Brands, Three Engines, Four 

Ve hicles This project intends to develop 

and manufacture three engine models for 

four vehicles to be marketed under the 

smart and Mitsubishi names. These newly 

developed engines are to meet particularly 

ambitious design goals by applying the most 

advanced technology now available. The 

engines planned for this series (1.3 and 1.5 

liter four-cylinder units and a 1.1 liter threecylinder 

unit) will be distinguished by their 

“high performance, low weight, economical 

operation as well as low development and 

manufacturing costs,” stated Seiichi Ohta, 

super visor of A9 engine development at 

Mitsu bishi. The engines will be produced in 

Kölle da and supplied to the Ned-Car plant in 

Born, Holland as well as the Mitsubishi plant 

in Okazaki, Japan. 

Division of Labor: An Unusual 

Approach Installing an engine made in 

Germany on a Japanese production line for 

the very fi rst time is not the only thing that 

is new here. The division of labor in the 

project also represents a new cooperative 

arrangement. Mitsubishi is developing the 

A9 engine series within the context of the 

Mercedes-Benz Development System. This 

means that the production planning is the 

joint responsibility of DaimlerChrysler and 

the Production department at MDC Power 

GmbH. Thomas Uhr, head of MDC Power 

and strategic project manager as well as host 

of the forum emphasised yet another aspect 

that made the teamwork even more complex. 

Since “only just about 20% of the added value 

is coming from the joint venture and the rest 

is coming from our supply partners,” this 

means that “we have high expectations of all 

our suppliers.” 

“The development targets are almost 

met,” Seiichi Ohta from Mitsubishi 

stated to the forum participants. 

A Real Test of Supplier Performance 

The group of suppliers already jointly 

selected by Materials Purchasing Passenger 

Cars (Mercedes-Benz/smart) and Mitsubishi 

has some special aspects to it. In his 

talk, Harald Bölstler, head of Procurement, 

Mercedes Car Group , pointed out that “there 

are suppliers here today that are well known 

to Mercedes-Benz. You are here now because 

you have proven once again that you are 

among those that set the benchmarks in 

the supply industry. But what’s even more 

signifi cant is that some of you are new to 

Mitsubishi. We urge you to take advantage 

of your new contacts to the Development 

department in Okazaki, not only to benefi t 

from this project but also to prepare 

yourselves for future joint undertakings 

between DaimlerChrysler and Mitsubishi. 

Japanese suppliers that will be servicing 

DaimlerChrysler are also here today for the 

fi rst time. We ask that you, too, show us that 

you not only have potential as suppliers but 

that you also can really collaborate on an 

international basis.” 

9 

„

10 

On March 1, Dr. Guido Krupinski will 

succeed Thomas Uhr as the strategic 

project manager. 

Global Forum 

Those who pass the tough tests ahead will 

open up great prospects “to make a name 

for themselves and acquire new customers 

while working with this alliance, which has 

awarded contracts for the highest purchase 

volumes of all OEMs in the world.” 

Optimising Costs In light of the fact 

that production tests are already scheduled 

to begin in mid-2003, the information 

marketplace at the forum provided a good 

opportunity for discussion aimed at settling 

questions and solving problems. In addition 

to dealing with the quality of the product 

and the production process, the complex 

logistics and purchasing processes, data 

exchange issues and topics pertaining to 

production, the critical issues of changerequest 

and launch management were 

discussed in detail. In this regard, Seiichi 

Ohta declared himself satisfi ed with the 

results of the testing conducted thus far, 

which showed that “the development targets 

are almost met.” Nevertheless, he called on 

suppliers “to continue to closely work with 

us and provide maximum support in helping 

us achieve our cost targets, so that we 

MDC Power Forum for A9 Engine 

can hold our own in the highly competitive 

market segment for our New Compact Cars.” 

Forum Well Received This forum can 

certainly be viewed as an important step 

toward meeting these goals. The forum 

participants were very pleased with the 

program content of the three-day event 

because it gave them the opportunity to 

make not only professional contacts but 

also the personal ones. As Thomas Uhr 

put it, “making professional and personal 

contacts for such complex and involved 

processes is a major contributing factor in 

maintaining the quality of a well-functioning 

production network.” 

Mr. Uhr also used the forum as an 

opportunity to introduce Dr. Guido 

Krupinski, who will succeed him on March 

1, 2003 as strategic project manager and 

Chairman of MDC Power. 

Supply partners had an opportunity 

to indicate their production locations 

on a world map.

Global Forum 

IPS Conference: Production Material Suppliers for 

Passenger Car Powertrains 

Our Objective: Outstanding 

Performance 

On February 3rd, a one-day meeting for suppliers of production materials for passenger car powertrains 

was held in the conference center at the Untertürkheim plant. Approximately 200 guests, mostly from the 

supply industry, accepted the invitation extended by International Procurement Services (IPS) and Production 

Planning – Powertrains (PPA). In addition to getting information on new trends in powertrain development and 

machining technology, those attending were also informed about the numerous powertrain projects underway 

at DaimlerChrysler and had a good opportunity to discuss them. A particular highlight of the event was the 

awards presented to three production material suppliers in recognition of their exemplary performance. 

For the fi rst time, IPS hosted a supplier 

conference that was not focused solely on 

one specifi c project. The conference was 

devoted to the larger interproject requirements 

and objectives within the Powertrain 

unit of the Mercedes Car Group from the 

special perspective of purchasing non-production 

materials. The head of IPS, Dr. 

Heinrich Reidelbach, stressed that the event 

was particularly intended “to cover the 

numerous powertrain projects for which 

production facilities have to be planned, 

supplied and placed in operation.” To 

ensure that the closely scheduled new 

product launches for 2003 and 2004 

occurred as planned, “it’s very important 

that we apply the Extended Enterprise® 

philosophy in working very closely and in 

complete confi dence with our production 

material suppliers,” Reidelbach emphasised. 

From a Planner’s Perspective 

In his welcoming remarks, Volker Stauch, 

head of the Untertürkheim plant and 

spokes man for the Powertrain/Components 

area, left no room for doubt about what is 

meant by partnership: “Successful products 

from our company are dependent on 

outstanding achievement in the area of 

passenger car powertrains.” To ensure that 

in the future “we continue to meet the high 

standards and justifi able expectations of our 

customers,” Stauch called for a ‘performance 

partnership’ to be supported by production 

material suppliers. “We’re only going to be 

able to meet the wishes of our customers by 

working together,” he asserted. 

Continuing on in this vein “from a 

planner’s perspective,” Eberhard Heuser, 

head of Production Planning-Powertrain, 

made some fundamental statements about 

„ 

Recognised for their exemplary performance: 

the companies ADS-TEC, 

J. W. Fröhlich and Grob-Werke. 

At the conclusion of the forum: 

a get-together in the Mercedes-Benz 

Museum. 

11

12 

They called for a “performance partnership” 

(from left): Eberhard Heuser, Volker 

Stauch and Dr. Heinrich Reidelbach. 

cooperation. Heuser detailed the ambitious 

targets planned for 2003 and 2004 and 

provided information on his area’s organisation 

and the responsibilities of its personnel 

as well as a survey of the planning 

methods and instruments utilised there. 

After having laid out this background 

information, he then reviewed what was 

expected of production material suppliers. 

High Expectations of Suppliers For 

Heuser, “on-schedule delivery of all ordered 

parts with the required material and design 

maturity” has top priority, and is a matter 

where “we will make no compromises 

whatsoever when it comes to quality.” 

Due to the increasingly steep ramp-up of 

production volume occurring after a launch, 

it is expected that delivered parts will 

fulfi ll all technical specifi cations right from 

their initial launch, including the agreed-on 

acceptance criteria. Heuser described the 

cost side as another challenge affecting 

both supply partners as well as buyers 

and planners because it must be borne 

in mind that “our powertrain costs include 

our substantial investment in pro duction 

materials.” Moreover, he expressed the 

expectation that suppliers continue to develop 

their technologies, a process that included 

participating in preparations for the “digital 

factory” and its pilot applications as well 

as participation in other strategically 

important activities such as C Expanding 

the use of dry machining technologies for 

all materials C Increasing production 

fl exibility through greater use of hybrid 

systems C Increasing the use of simultaneous 

engineering in initial project stages C 

Achieving shorter delivery times by reducing 

time-to-market margins 

Supplier Management at IPS 

Dr. Reidelbach predicted “additional opportunities” 

for the “most effi cient suppliers” 

due to the global reorganisation of IPS over 

the past year. He explained that the most 

important criteria for a contract award was 

supplier performance, with its performance 

track record as documented in supplier 

reviewing as well as its concrete offer in 

terms of price and service being the basis 

for each award decision. In this regard, “our 

suppliers are closely measured according to 

their efforts to reach benchmark level with 

respect to the four strategic quality drivers 

at Global Procurement & Supply: quality, 

system costs, tech nology and supply.” These 

value drivers are converted into assessment 

criteria which, along with the results of 

supplier reviewing, support the process 

of agreeing on joint objectives with the 

supplier by applying the External Balanced 

Scorecard (EBSC). 

The Three Best Powertrain Suppliers 

In summarising this approach, Dr. 

Reidelbach stated that by doing so, supplier 

management was implementing “our 

Extended Enterprise® philosophy in support 

of open, fair and performance-oriented 

partnership between DaimlerChrysler and 

its suppliers.” DaimlerChrysler and our 

supply partners, in these times of increasing 

competitive pressures and cost pressures, 

“must remain focused on our joint 

competitive strengths.” In his view, 

outstanding performance in the Powertrain 

area was crucial to being able 

to continue DaimlerChrysler’s successful 

product policies. 

Three suppliers, which had achieved this 

level of performance over the past two 

years, were recognised for their exceptional 

efforts in front of the assembled suppliers 

and received an award jointly presented by 

Dr. Reidelbach, Mr. Stauch and Mr. Heuser. 

During the presentation, they emphasised 

that the companies ADS-TEC, J. W. Fröhlich 

and Grob-Werke “were not just selected by 

Purchasing alone, but in particular by their 

customers at the plants and in the central 

offi ces.” These suppliers were chosen based 

on the results of supplier evaluations that 

are carried out by all IPS customers. This 

coveted award “should be an incentive to 

all suppliers present here today to work 

diligently at providing similar outstanding 

services in upcoming projects,” which are 

equally ‘price-worthy.’

Global Project 

IPS Global Cutting Tool Project 

Learning With and From 

Each Other 

As Dr. Heinrich Reidelbach, with a view 

toward the future, stated back on July 1, 

2002* shortly after the start of the IPS 

reorganisation: “We’re going to combine the 

process expertise and know-how from both 

sides of the Atlantic and learn a lot from 

each other.” This statement was originally 

focused on the internal convergence of 

both purchasing organisations for non-production 

materials, based in Auburn Hills 

and Stuttgart, into one new, merged IPS 

organisation. Since then, this process has 

been expanded to include various other 

IPS projects, involving other company areas 

in the learning process. One of these is 

the Global Powertrain Cutting Tool Project, 

on which representatives from powertrain 

plants at Chrysler and Mercedes-Benz, from 

IPS and from tool suppliers have been 

working together for over 6 months. 

Three Compelling Reasons There are 

three compelling reasons why this project 

is being undertaken. The fi rst one is the 

high cost pressure that Chrysler Group 

powertrain plants are faced with concerning 

tools. The second one is the construction, 

to be completed by the end of the year, 

* See also Global Supplier, 3rd Quarter 2002, 

Issue No. 11, p. 4f. 

Toward the end of the summer in 2002, International Procurement Services 

initiated an interdisciplinary project involving personnel on both sides of the 

Atlantic, a project intended to optimise the costs for cutting tools. The “Global 

Powertrain Cutting Tool Project” is yet another example of how both sides of 

DaimlerChrysler are intensifying their collaboration with suppliers on “both 

sides of the pond.” 

of the Chrysler Indianapolis Transmission 

Plant 2 (ITP 2) in which the “New 

Automatic Transmission” (NAG 1) developed 

by Mercedes-Benz is to be produced and 

then installed in Chrysler passenger cars. 

Finally, the third one is that with the global 

reorganisation of IPS, it is now possible 

to make worldwide commodity-group-based 

technological and economic comparisons and 

contrasts in order to generate increased 

purchasing volumes and to further optimise 

costs. 

Project Focus: ITP 2 and NAG 1 Although 

cutting tools and the related metal-cutting 

processes at all Chrysler powertrain plants 

are going to be studied, the upcoming 

NAG transmission production at ITP 2 in 

Indianapolis is a primary focus of the 

project. Armin Andritzky, head of Global 

e-Market Management and one of the project 

managers explains why: “The reason is that 

this new factory will be producing exactly 

the same transmission as in Stuttgart. So, 

we’re going to automatically use the same 

production equipment, and along with it, the 

exact same cutting tools that we’re already 

using in Germany.” 

13 

Taking a good, close look at the metal-cutting 

tools to be used in producing transmissions 

at IPT 2 provides an excellent opportunity to 

acquire some helpful practical experience to 

be used as basis for pursuing other, similar 

evaluations in the larger project. These 

examinations involve such steps as analysing 

and achieving uniform price structures on 

both sides of the Atlantic as well as, 

wherever possible, ensuring standardisation 

of tools and tool development across all 

plants. 

The Project Objectives The overriding 

objective of this project is to apply volume 

bundling of orders in the Powertrain area 

across many business units in order to 

„

14 

reduce tool prices and lower logistics 

costs. These goals will be achieved with 

the following methods: C Identifying 

identical/similar tools C Comparing tools 

on a technical and cost basis C Applying 

volume bund ling, based on standardisation 

and rationalisation C Examining and 

optimising processes. 

In light of all this, the project is pursuing 

both short-term and long-term goals. To jump 

start things, initial negotiations on some 

‘quick-win activities’ were started with the 

ten most important tool suppliers. These 

negotiations quickly resulted in some signifi 

cant savings. In conjunction with this, 

suppliers were also asked to come up with 

further potentials for improvements. “The 

big question was how and where, in 

their view, we ourselves would have to 

change or standardise our own processes 

so that they would then be able to 

supply us at even lower prices,” Dr. 

Reidelbach explained, emphasising the 

reciprocal approach involved. 

Some Really Good Suggestions from 

Suppliers For example, tool suppliers 

suggested that DaimlerChrysler increase the 

quality of its planning by conducting an 

advance survey of global requirements. In 

fact, Eberhard Heuser, head of Production 

Planning-Powertrain, confi rmed “that on the 

planning side alone there are some very 

different processes in place.” This is 

an historical development attributable to the 

different structures that evolved at plants 

in Europe and in the United States. “In 

Germany, the plants involved in metal 

cutting and machining are centrally 

organised and closely follow a prescribed 

planning process. This means that we 

regularly get clear, defi nite planning fi gures 

about the tool requirements for the next 

period,” Andritzky explains. The availability 

of these fi gures means that tool suppliers 

can plan capacities more exactly and 

be sure of delivering the right amounts. 

This exact information helps them optimise 

processes and, in the end, also optimise 

their tool prices. “So, the introduction of a 

globally standardised planning process is a 

signifi cant factor in achieving success,” he 

added, summing up the overall effect. 

Long-Term Goals In addition to optimising 

processes and harmonising them between 

the Mercedes-Benz and Chrysler brands, 

another primary focal point of the investigation 

is fi nding ways to replace special 

tools with more economical standard ones 

and determining which tools can be used 

immediately in which factories. According 

to Andritzky, this examination will extend 

beyond this year “because we are dealing 

with investigations being conducted on 

many levels.” This is also true for the 

planning, already started, to offer and 

procure as many standardised tools as 

possible through eShop, DaimlerChrysler’s 

electronic catalog system. 

Everyone Benefi ts From Project’s 

Success Even though some things in this 

project will still take some time to achieve, 

everyone involved has already derived some 

benefi t. Not only the American plants but 

the German ones as well have enjoyed the 

almost automatic drop in worldwide prices 

that the Cutting Tool Project has brought 

about. New opportunities are also opening 

up for suppliers, with the related improvements 

in their processes and logistics fl ows 

having opened up additional ways to signifi - 

cantly increase their global sales volumes.

Using eDocs, DaimlerChrysler makes 

purchasing documents (orders, agreements 

and inquiries) created in the material 

purchasing system (MES) available to 

suppliers in a paperless form over the 

Internet or through the DaimlerChrysler 

Supplier Portal. Previously, all this documentation 

was handled in tra ditional 

hardcopy formats. After a design 

and implementation phase lasting less than 

12 months, eDocs has developed into an 

important instrument for handling daily 

purchasing activities of the approximately 

1,000 buyers active in the IPS, PCV and 

MEP areas. Starting in May 2002, eDocs 

was implemented throughout these business 

areas and has quickly become an impressive 

success. It has now become the most 

frequently used e-Business application in 

the business-to-business area at Daimler- 

Chrysler. 

Benefi ts for Buyers and 

Suppliers Currently, around 4,000 

employees at 1,300 of DaimlerChrysler’s 

most important business partners are using 

eDocs. In 2002, approximately 90,000 

paperless documents were exchanged, repre- 

„ 

Global e-Business 

eDocs 

It’s a Big B2B Success 

* See also Global Supplier, 1st Quarter 2002, Issue 

No. 9, p. 30f, and Global Supplier, 2nd Quarter 

2002, Issue No. 10, p. 26f. 

The across-the-board implementation in 2002 of eDocs*, the 

e-Business application for paperless exchange of documents, 

has been a great success. Its two project managers, Florian 

Manhart and Tilman Knapp, update us on this innovative development. 

senting a total contract volume valued at over 

7.0 billion Euro. The advantages of eDocs, 

both for buyers and business partners, are 

quite apparent, with the high level of use 

(over 70%) emphasising these benefi ts: 

• Paperless exchange of legally binding 

purchasing documents including document 

addendums 

• Reduction in administrative workload 

• Massive reduction in document transfer 

times 

• Process transparency at every step of 

the way 

The experience from 2002 has shown that 

eDocs was able to reduce document transfer 

times from an average of 15 to only 4 days. 

eDocs Goes Global Since October 2002, 

20,000 

18,000 

16,000 

14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

15 

the system has also been available in 

English, allowing foreign supply partners to 

exchange purchasing documents via eDocs. 

For example, since November 2002 Spanish 

and Turkish personnel in PCV have been 

involved in eDocs processing. In 2003, 

this success story is being continued. The 

connection of more business partners and 

the migration of eDocs to the global Daimler- 

Chrysler Supplier Portal will create a 

globally accessible e-Business application for 

our supply partners. 

May June July August Sept. Oct. Nov. Dec. 

Number of eDocs 

Participating suppliers 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0

16 

Global 

About a year ago, Global Supplier 

provided information about the 

development of a web-based tool 

to measure suppliers performance 

— the External Balanced Scorecard 

(EBSC). EBSC continues as a global 

program with the initial implementation 

delivered on a regional 

Global Procurement & Supply Business 

Unit basis. Supplier performance 

assessment is generated at the 

Business Unit level. Chrysler Group 

tier 1 suppliers started accessing their 

performance data through the Internet in 

fall 2002. 

Following a pilot phase in 2001, IPS has 

continued to roll out the EBSC and has 

already covered a purchasing volume of 

1.3 bln. € in 2002. 

In addition, Non-Production Material Sup- 

pliers and Mercedes-Benz Passenger Cars 

Suppliers began accessing their EBSC via 

Internet in January 2003. Commercial 

Vehicle Suppliers will follow. 

External Balanced Scorecard at 

Chrysler Group The External Balanced 

Scorecard (EBSC) gives Chrysler Group 

Production and MOPAR suppliers 

feedback on performance of four Value 

Drivers: supply, quality, system cost and 

technology measures. EBSC replaces the 

previous Chrysler Supplier Rating System 

Process 

GP&S External Balanced Scorecard (EBSC) 

Ready to go in 2003 

(SRS) which is no longer operational for 

current and future calendar years. 

This new measurement tool gives 

suppliers Internet access to performance 

data, links to competitive performance 

to awards, segments components into 

similar groups and bases competitive 

assessment matrices on balanced 

scorecard data. 

With EBSC, business partners are 

evaluated at monthly intervals, 

measuring specifi c and documented 

criteria. The measurements present a 

clear picture of whether the supplier is 

still “on target to expectations.” Chrysler 

Group uses the results from the measurements 

to determine future bid opportunities. 

The External Balanced Scorecard is 

an opportunity for suppliers to intensify 

their partnerships with Chrysler Group. 

It is a useful tool to open a meaningful 

dialog with buyers. 

Chrysler Suppliers access EBSC through 

the Extended Enterprise Network (EEN) 

by selecting ”applications”, “purchasing”, 

“GPSIS” after taking the instructor lead 

training course. 

Training for Chrysler Group Suppliers is 

held at DaimlerChrysler, Auburn Hills, 

Michigan, and takes place April 28 — 

May 2, 2003; August 4 — 8, 2003; and 

October 27 — 31, 2003. On-line training 

and EBSC HELP documents are available 

on the GPSIS home- page. Suppliers may 

contact their buyers for more information.

South Africa 

e-Business 

Uncompromising partnership 

The launch of partner.net and the 

External Balance Scorecard (EBSC) by 

DCSA at a function in the East London 

plant was an opportunity to get together 

with suppliers to talk about partnership 

and the “Race for 204” - DCSA’s 

campaign to secure the contract to build 

the Mercedes-Benz W204, successor to 

the present C-Class. 

Addressing the audience of 150 guests, 

suppliers and staff, DCSA’s Management 

Board Member for Manufacturing and East 

London Site Leader, Dr Hansgeorg Niefer, 

said the race was going to be tough and 

required commitment, strategy, teamwork, 

measurement, quality and on-time delivery 

with a focus on business results. 

“The performance criteria are better quality, 

faster delivery and cheaper costs,” he said of 

the race, which started on 8 July 2002. 

He said the launch of the partnership tools 

constituted a further step in the race, the 

results of which will be announced in 

October. 

“We will win because it means growth, 

pride, security and new jobs. Security for our 

partners, the community and South Africa,” 

he said. 

EBSC 

Providing a EBSC overview, the Divisional 

Manager for Procurement and Exports, Bernd 

Grau, said the EBSC process supported 

co-operative and transparent relationships 

between DCSA and suppliers. 

“We want to show one face to suppliers in 

order to achieve win-win business results. 

EBSC provides transparency for the suppliers 

and DCSA on the strategy, targets and the 

processes and tools.” 

He said a big criticism was that DCSA needed 

to share targets and philosophy, and only if 

they were aligned could they produce the 

best results. This is what the EBSC tool will 

change. 

“Our processes are customer driven and 

we expect our partners to be effi cient. We 

expect and promote supplier creativity and 

involvement. 

“We expect uncompromising cost, quality, 

supply and technical commitment with a 

focus on ethical long-term partnerships.” 

The bottom line 

Outlining the competition in the Race for 204 

the Divisional Manager of Quality Assurance, 

Herbert Renz, said this was both internal and 

external with Bremen and Sindelfi ngen the 

other front runners. 

“For us it is life or death, therefore a great 

deal of emphasis is on quality. Quality is the 

bottom line and will give us a head start but 

we are not at the level of the competition. 

We have achieved great things, but we cannot 

rest.” 

Providing a comparative view of supplier 

trends between the competitors, he showed 

The main speakers at the 

partner.net launch were (from 

left) Divisional Manager for 

Quality Assurance, Herbert 

Renz; Divisional Manager for 

Procurement and Exports, 

Bernd Grau; Information 

Technology Manager, Arno van 

der Merwe; Divisional Manager 

for Logistics, Johan 

Engelbrecht; and Management 

Board Member for 

Manufacturing, Dr Hansgeorg 

Niefer. 

17 

the need for an improvement in quality. 

He said DCSA had embarked on a supplier 

development programme, but would not win 

the race unless the existing trend was 

reversed. 

Up to speed 

Speaking about partnership in logistics, 

the Divisional Manager for Logistics, Johan 

Engelbrecht, said it was all about speed in 

delivery but not at all costs. 

“We are shaping the world’s most effective 

supply chain to ensure we are globally 

competitive, but we are at a major disadvantage 

due to inbound and outbound logistics.” 

He said the logistics strategy was a 

major initiative and the considerations were 

how to optimise economies of scale, singlestage 

stock, close proximity to the original 

equipment manufacturer (OEM), supplier 

integration, process authorization, JIS and JIT 

supply, operational issues such as visibility, 

commitment and task teams, and standardisation. 

Guests viewed a promotional video likening 

the Race for W204 to a Grand Prix race, 

and were entertained by a representative 

of Win-Win who spoke about the common 

denominator of successful heroes and leaders 

of society as being commitment and determination 

to succeed.

18 South Africa e-Business 

On line 

The following will be available on the 

portal: 

Purchasing: 

CView of all purchasing documents, 

including pricing details, by date, 

purchase orders, scheduling 

agreements, contracts etc.); 

C Maintenance prices and details 

in a quote (Quote maintenance by 

supplier will automatically update 

DCSA’s SAP System) 

CView acceptance and rejection 

letters; 

CFull information system for 

consignment vendors; 

CView drawings and have access 

to downloading the requirements and 

standards of DCAG. 

Logistics: 

CView delivery due list; 

CView what has been received; 

CView all releases. 

Quality: 

CView and print ISIR documents. 

Finance: 

CView settlement documents. 

Users will also have access to display 

supplier-related general information. 

A thorough analysis and evaluation 

will be done in the couple of months 

following the launch of the portal, 

and the input of DCSA’s partners will 

be vital in determining whether the 

technology is benefi cial to, and in 

support of, the business processes, 

and what further development of the 

portal is needed 

Promoting “Excellent Business 

and Supplier Communication” 

The External Balanced Scorecard, an 

instrument for agreeing on targets 

and for management of the network 

between DCSA and its suppliers, will 

build and strengthen relationships 

between the two. 

Speaking at the launch, the Divisional 

Manager for Procurement and Exports, 

Bernd Grau, outlined numerous benefi ts 

of the EBSC including: 

* A comprehensive, global perspective of 

current and future opportunities; 

* Suppliers able to access current 

evaluations at any and all times; 

* Integration and alignment of all 

associated processes with organisational 

missions and goals; 

* Specifi c performance measures and 

targets to focus organisational efforts. 

Simba Garaba, Wiseman Mbinyashe and Charles Kalima during a break at the launch of partner.net. 

Hansgeorg Niefer and Bernd Grau. 

„

Supplier reaction 

South Africa e-Business 

19 

Jacques Minie and Bryan Gray of JCA with DCSA’s Divisional Manager for 

Manufacturing, Niels Andersen (right) at the partner.net launch. 

EBSC tool 

The EBSC is one of the tools of the Extended 

Enterprise programme aimed at turning 

DCSA’s vision of shaping the world’s most 

effective supply network into a reality. 

The tool translates strategic targets into 

real quantities for commodities supplied. It 

benefi ts everyone involved by making all 

the items communicable, measurable and 

appreciable at all times and for everyone in 

the network. 

Value drivers 

The EBSC is based on the four value 

drivers in the GP&S strategy: quality, 

cost, technology and supply. Each factor is 

described by a measurable quantity individually 

defi ned according to the requirements 

The “Race for 204” and introduction of partnership tools to 

improve communication between DCSA and suppliers was 

given the thumbs up by guests at the launch at the East 

London plant in February. 

Ronnie Welgemoed of Snap on Tools, which supplies all hand tools 

and has a staff of 120, was upbeat. 

“DCSA is streets ahead of the competition. I have been dealing with 

them for 15 years and things we thought were not possible, they 

have taught us. We have grown unbelievably. 

“W204 will hopefully double production. It is exactly what East 

London needs and will have excellent spin-offs. Local content will 

increase from 20% to 40%. 

“I am confi dent we will win the race,” he said but added it was too 

soon to comment on the EBSC. 

of the internal division, such as non-conforming 

material (PPM), cost savings, environmental 

compliance or on-time delivery. 

The accumulated data are calculated in the 

scorecard to determine the fulfi ll rate. These 

fi gures are then used to draw up a sourcing 

matrix (bubble chart). The matrix provides 

a quick overview for comparing the current 

performance level of the partner supplier, 

and suggests what areas of co-operation 

need improvement to guide optimisation. 

Suppliers as well as internal divisions can 

thus receive useful, instructive feedback 

from the procedure. The results from 

the scorecard and sourcing matrix also 

infl uence commodity and supplier 

strategies. 

The fi rst regular reports to suppliers will 

DCSA’s Divisional Manager for Human Resources in East London, Goodman 

Lucwaba (left) with Internal Communications Officer, Donna Mhlanga, at the 

partner.net launch. 

begin in March following the February 

launch. Annual agreements on targets 

started in January. 

Adding value 

Grau said the EBSC was part of the 

process to add value by triggering supplier 

development. It also realised an integrated 

overview of supplier performance in respect 

of quality, cost, technology and supply. 

It improved supplier performance and 

provided transparency. It was a tool for 

sourcing decisions and promoting corrective 

actions. It also improved communication. 

He said an alternative meaning for the EBSC 

acronym was “Excellent Business & Supplier 

Communication”. 

Pieter Leach of Max Steel Trading EC, which provides maintenance 

material for the DC group and manufacturers in the plant, said the 

EBSC was “a very good thing”. 

“It ties it down to one pricing structure. It is very effi cient and 

hands on, and will save a lot of time for buyers.” 

Referring to winning the Race for 204, he said it would affect 

everything: “It will increase the harbour business and have a chain 

reaction of spin-offs -- all positive.” 

Frans van Heerden of Eberspacher Exhaust Systems, which 

was established in East London specifi cally for W203, said the 

development of partnership tools and the race for the next 

generation Mercedes was exciting. 

The EBSC tool will provide a sound and fair base for evaluating the 

suppliersfor the year end supplier awards.

20 South Africa e-Business 

Arno van der Merwe 

The first electronic transmission of data will take place through 

SAP’s portal technology, branded by DCSA as partner.net, in March 

with 10 production and five non-production suppliers 

It will empower DCSA and 

its partner suppliers to 

give even greater effect to 

DC’s Extended Enterprise 

philosophy of developing a 

global supply network. 

“The key for us was to 

understand where business 

is going and the objectives 

of our partners in supply.” 

This was said by DCSA’s 

Invision/IT Manager, Arno 

van der Merwe, in outlining 

the reasons behind the 

launch of partner.net. 

A step ahead 

Van der Merwe said that 

in July 2002 it was decided 

that a major system 

upgrade was needed 

following the introduction 

of the SAP system in 

December 1999. 

This was followed in August 

last year by the SA Portal 

“proof of concept” launch, 

and now the partner.net 

initiative. 

“We were looking for valueadding 

solutions because 

we need to be a step ahead 

in order to offer business 

solutions,” he said. 

One face 

The portal offers a single 

point of entry to chosen 

transactions and 

applications relating to the 

purchasing process. This 

function is in alignment 

with the Global 

Procurement and Supply 

(GP&S) initiative to have 

one face to suppliers. 

The technology change for 

suppliers is that key 

business transactions will 

be conducted electronically 

using the portal’s well-enabled 

process facility. 

SA suppliers will be able 

to take full advantage of 

global eBusiness with a 

new tool that will shorten 

the business communication 

chain considerably. 

It will allow easy access to 

all required information in 

real-time, and will provide 

paperless online 

procedures and reduce 

documentation. 

Communication between 

DCSA and its partners will 

be faster, more transparent 

and therefore more closely 

aligned. The greater transparency 

and accountability 

will result in more effective 

value chain management. 

The EBSC project team. 

Daniel Garcia (EBSC 

Co-ordinator); Anna 

Ahlschlager (EBSC Process 

Management); Chester 

Joubert (Programmer); Dave 

Sokolich (Project leader); 

Derrick Wheals 

(Programmer). 

Absent, Lulu Mfunguza.

South Africa Economy 21 

Like a 

breath of 

fresh air 

EUROTYPE TEST Centre (ETC) in East London, started 

following an approach to the South African Bureau of 

Standards (SABS) by DaimlerChrysler South Africa for 

a world-class emission control testing facility, further 

secured its position as the leading facility of its kind in 

the southern hemisphere with the opening of a new Heavy 

Duty Diesel (HDD) test dyamometer. 

The new facility will help support the export of locally manufactured 

diesel engines by certifying their compliance with the 

strictest emission control regulations in the world. 

SABS Chief Executive, Eugene Julius, points out that for 

South African motor exports to succeed, it is essential that 

local products can be evaluated and certifi ed to international 

standards by independent testing facilities that meet all international 

requirements. 

ETC already meets the highest standards possible for passenger 

cars, having been approved as a testing centre for both 

Mercedes-Benz and BMW export vehicles, and is now being 

considered by auto manufacturers outside Africa to undertake 

their testing. 

Chief Executive of the South African Bureau of Standards, 

Eugene Julius, speaking at the opening of ETC’s Heavy Duty 

Diesel testing facility. 

The Deputy Mayor of Buffalo City, Des Halley, officially opens ETC’s new Heavy Duty 

Diesel dynamometer, watched by the Chief Executive of the South African Bureau of 

Standards, Eugene Julius. 

Eurotype’s Managing Director, Jalena Janjic, said the company 

had already been approached by Ford Australia for testing their 

engines that will be exported to Malaysia, and it was hoped 

others would follow. 

It’s also attracting the attention of South African fuel companies, 

particularly Sasol, as South African regulations on diesel fuel, 

long criticised for stunting the full development of high-technology 

diesel-based transport in the country because of high 

sulphur content, fall into line with international standards. 

It will also help the fuel companies to evaluate their fuels on the 

latest technology engines available before they are introduced 

into the country. 

“Our vision is to be the foremost automotive testing company in 

the southern hemisphere,” she said. 

ETC is defi ned as a “test laboratory” and accredited to the 

International Organisation on Standardisation’s ISO/IEC 17025 

quality management system for laboratories by the South 

African National Accreditation System (SANAS). 

„ 

DCSA’s Manager for Prototyping and Testing, Mike Schultz, with the 

Managing Director of East London’s Industrial Development Zone, Peter 

Miles, at the ETC launch.

22 South Africa Economy 

President of the 

Environmental and 

Energy Technology and 

Policy Institute, John J. 

Mooney, one of the 

inventors of the threeway 

catalytic converter, 

at the opening of ETC’s 

Heavy Duty Diesel testing 

facility. 

Wide application 

The new Schenck HDD dynamometer 

allows for an extremely wide range of 

engine sizes and power outputs, up to 

1250 kilowatts, at speeds of up to 6 

500 revolutions per minute and torque of 

5000 Newton metres. 

ETC’s Senior Engineer for HDD engine 

testing, Walder Schoultz, said the fullyautomated 

R28-million investment gave 

ETC the capacity to test for carbon 

monoxide and dioxide, nitrogen oxides, 

hydrocarbons and particulate matter. 

Schoultz pointed out the importance of 

diesel emission control, citing as an 

example the fact that even a well-tuned 

diesel engine emits more dangerous 

fumes than a cigarette. 

The HDD facility complements the 

existing Conformity of Production (CoP) 

laboratory that was built in 2000 and last 

year tested more than 600 cars, three 

quarters of which were Mercedes-Benz 

vehicles built in East London. 

Additional testing 

ETC’s Senior 

Engineer for 

HDD engine 

testing, 

Walder 

Schoultz. 

Apart from emission testing, ETC 

also offers a number of other motor 

industry testing facilities. 

In East London, these include: 

C A noise level testing track in East 

London to the requirements of ISO 

10844; 

C An engine testing facility to evaluate 

spark and compression ignition; and 

C A R3,5-million mobile air quality 

measuring laboratory mounted on a 

Mercedes-Benz Atego. 

Eurotype’s 

Managing 

Director, 

Jalena Janjic. 

International reputation 

An illustration of how highly ETC is 

becoming regarded was the presence 

at the opening of John J. Mooney, 

President of the Environmental and 

Energy Technology and Policy Institute 

based in Washington, USA, and one of 

the inventors of the catalytic converter - 

now used in more than 500 million cars 

around the world. 

Mooney helped developed the three-way 

catalyst while working as a chemical 

engineer at Engelhard, which earned him 

the Walter Ahlstrom Prize in Engineering 

presented by the Swedish and Finnish 

academies of science. It is equivalent to 

the Nobel Prize in Engineering. 

A single catalyst able to get all three 

reactions necessary to remove carbon 

oxides, nitrogen oxide and hydrocarbon 

emissions had been thought impossible 

until Mooney and his team came up with 

the answer in 1974. 

Mooney had been in South Africa to 

In Pretoria, these include: 

C Component testing including 

steering systems, wheels and interior 

fi ttings; 

C Brake testing for lining assemblies; 

C Restraint systems testing, including 

safety belts and child restraints; 

C Frontal impact testing to European 

and United States standards 

Beyond its testing activities, ETC is 

committed to developing human 

resources in engineering skills, and the 

East London facility partners with universities 

and technikons to take on 

students for practical training. 

The students are trained to international 

standards in high-technology testing, 

and gain crucial technical skills. 

SABS 

Director, 

John 

Summersell. 

advise on emission control measures, 

and said he was delighted with the 

development of ETC, which would go far 

to providing South African-made engines 

or components with the credibility 

needed in international competition. 

A further indication of the respect with 

which South Africa’s motor industry 

is being held by the rest of the 

world was revealed by SABS Director, 

John Summersell, who announced that 

South Africa had been invited to join 

an international programme to develop 

harmonised diesel regulations. 

The United Nations programme agreed 

to in Geneva only three weeks before 

the opening of the HDD facility and 

which will begin in November, formed 

three government sub-projects headed by 

Japan; United States and Canada; and the 

European Union. 

“South Africa was invited to join the 

European Union project,” Summersell 

said. 

Julius proudly points out that since 

starting, 25 students have already 

graduated through the facility, taking 

world-class knowledge and skills into 

the industry. 

Apart from the direct technical 

knowledge they acquire, the students 

also develop leadership skills and 

knowledge of product planning and 

establishing quality standard documentation. 

The ETC is now launching a further 

programme where selected students will 

have the opportunity to receive even 

more focussed tertiary education both in 

South Africa and abroad in testing technologies.

South Africa Economy 23 

Exceptional exports 

DCSA’s record 2002 results make it the seventh 

biggest DaimlerChrysler company in the world. 

EXPORTS of components and the Mercedes-Benz 

C-Class made in East London pushed DaimlerChrysler 

South Africa’s 2002 turnover up by a phenomenal 43% 

to R20.4 billion, making DCSA the seventh biggest 

DaimlerChrysler company in the world in terms of 

turnover. 

Presenting the company’s business results, DCSA’s 

Management Board Member for Finance, Rudi Borgenheimer, 

said the extraordinary turnover was largely due 

to higher than expected Rand earnings from exports. 

“Last year I have never been so relaxed as Chief 

Financial Offi cer when I saw record after record being 

broken,” he said. 

The exports were invoiced in Dollars, Euros or Yen, and 

had earned Rands “far beyond expectations”. 

Borgenheimer said the result underlined the increasing 

importance of the company’s export business, which 

has motivated DCSA to work in close partnership with 

suppliers to secure component export contracts, mainly 

with other DaimlerChrysler plants in Germany and the 

United States. 

Almost all leather used in seats for luxury 

Mercedes-Benz C-Class and E-Class cars manufactured 

worldwide is sourced from South Africa, and large 

export contracts have also been secured for components 

such as catalytic converters and alloy rim wheels. 

Another difference was that while sales and production 

volumes grew, DCSA held costs at much the same level, 

which resulted in greater cost effi ciency throughout the 

company. 

“We achieved high growth and profi tability, and we now 

want to sustain this,” Borgenheimer said. “Our number 

one target this year will be to improve our processes, 

which will be an ongoing exercise.” 

Manufacturing 

The Management Board Member for Manufacturing, 

Dr Hansgeorg Niefer, said the East London plant had 

produced more than 47 000 Mercedes-Benz C-Class and 

8 000 Mitsubishi Colts in 2002 at quality and on-time 

delivery levels that equalled Mercedes-Benz plants in 

Germany. 

“We have never produced so many vehicles in our 

history,” he said. 

Of the Mercedes-Benz cars produced in the plant, 

„

24 South Africa Economy 

44% had been exported to customers in the 

United Kingdom, 25% in South Africa and 

11% in Japan and Australia respectively. 

A major campaign, dubbed the “Race for 

204”, has been launched by the plant 

to secure the contract to build increased 

volumes of the Mercedes-Benz W204, 

successor to the present W203 C-Class. 

The decision on which DaimlerChrysler 

plants in the world will manufacture the 

W204 from 2006, and at what volumes, will 

be made by DCAG in October this year. 

DCSA’s Chairman, Christoph Köpke, said 

the Race for 204 was not simply about 

winning the contract - which was a certainty 

- but doing so at double the present 

volumes. 

DCSA is pushing hard to be awarded 

the contract to build both right-hand and 

left-hand drive versions of the car at 

volumes of more than 60 000 a year, which 

would give DCSA a signifi cant unit-cost 

effi ciency advantage. 

“We’re not a losing company and this is 

not an option,” Köpke retorted when asked 

what would happen if DCSA did not get the 

contract. 

“Too much work and effort has gone into 

this and the only question is the volumes we 

will get.” 

However, he said DCSA was concerned what 

effect a possible strike would have, recalling 

that when production of the existing C-Class 

was ramping up there had been a strike. 

This was because a new three-year National 

Bargaining Forum (NBF) agreement would 

be negotiated next year, and such talks were 

almost “institutionally” accompanied by a 

strike. 

“This sort of thing sticks in investors’ 

minds, and if we have the same thing again 

while preparing for W204 the investors 

will question whether it is worth investing 

here.” 

Import benefi ts 

Apart from adding directly to the company’s 

bottom line, the exports also earned 

suffi cient import duties in terms of the 

Motor Industry Development Plan (MIDP) 

to enable DCSA to import a wider range 

of passenger cars and commercial vehicles 

from DaimlerChrysler. 

The imported vehicles helped boost the 

company’s domestic vehicle sales. 

An added bonus to Buffalo City is that the 

imports are processed through the same 

Portnet Car Terminal used to export the 

plant’s products. 

The Management Board Member for Sales 

and Marketing, Fritz van Olst, said 2002 had 

been a bumper year domestically, “and our 

(Mercedes-Benz Car Group) market share of 

9.4% puts us into third spot internationally 

from a market share point of view. 

“Last year, we overtook BMW for the fi rst 

time since 1993 to claim the number one 

spot in the luxury car market in South 

Africa.” 

Chrysler/Jeep continued its extraordinary 

sales record, selling 7 611 vehicles last year. 

Despite suffering a drop in Colt sales as a 

result of the completion of the Telkom order, 

Mitsubishi Motors increased sales through 

dealers. 

Although Mitsubishi volumes were expected 

to drop this year, Van Olst said he hoped 

“our predictions are pessimistic and we will 

push volumes up.” 

The Management Board Member for 

Commercial Vehicles, Geoff du Plessis, was 

equally upbeat, and said the domestic 

Commercial Vehicle market had grown by 

8% overall, which he described as nothing 

short of phenomenal. 

Du Plessis said the increase refl ected 

South Africa’s growing export business as 

customers increased or renewed fl eets to 

carry products into Africa. 

The only segment that saw a decrease 

was in the heavy truck sector (in which 

Mercedes-Benz competes with the Atego), 

but DCSA was confi dent that new products 

and more stock this year would improve 

this. 

The star performer had been in the extra 

heavy segment (the over-16 tonne sector 

in which Mercedes-Benz competes with the 

Actros), which had shot up by 18% and in 

which DCSA increased its penetration to 

25%.

DCSA buyers at the 

Purchasing Services workshop 

have their hand outlines 

spray painted onto a 

board to show their commitment 

to the new Lead 

Buyer concept. 

The new Lead Buyer concept 

has been enthusiastically 

received by staff in a 

restructured Purchasing 

Services division at Daimler- 

Chrysler South Africa, who 

took to the sun, sand and 

sea at a beach resort to 

get to grips with changing 

processes - and mindsets. 

South Africa is the only Daimler- 

Chrysler company outside 

Stuttgart and Auburn Hills that 

provides the full range of DC’s 

business activities - from manufacturing 

Mercedes-Benz and 

Mitsubishi cars to marketing a 

wide range of Mercedes-Benz, 

Chrysler, Jeep, Freightliner and 

Mitsubishi cars and trucks, and 

providing full fi nancing and 

fl eet leasing through Daimler- 

Chrysler Services (DCS) and 

debis Fleet Management (dFM). 

Such a diverse and complex 

range of business activities that 

developed as much by historical 

accident as by design and 

managed by a relatively small 

organisation, has presented a 

unique set of challenges, not the 

South Africa Projects 

Changing mindsets 

least of which has been to control 

purchasing. 

Bridging divisions 

DCSA’s corporate headquarters 

at Zwartkop is more than 1 000 

kilometres from the East London 

plant and 500 kilometres from 

the Parts Division in Pinetown, 

and traditionally each location 

has been responsible for its own 

purchasing. 

On top of this has been the rapid 

recent development of DCS into 

a major vehicle-fi nancing house 

that now provides a range of 

fi nancial products to one out 

of every three DaimlerChrysler 

vehicles sold in the country with 

a total asset book of R6.2-billion. 

Since April 2000, the relatively 

new dFM became the country’s 

single biggest fl eet operator 

when it won the Telkom tender 

to take over a 20 000 vehicle 

fl eet on a fi ve-year full 

maintenance contract. 

The rapid growth of DCS and 

dFM, both based at the same 

Zwartkop offi ces at DCSA, 

resulted in staff numbers more 

than trebling from around 300 to 

1 000 within the last two years, 

which meant that on a single day 

half a dozen different vendors 

could end up supplying identical 

25 

products to the same building at 

different prices. 

In addition, much of the buying 

of non-production products or 

services has been undertaken by 

employees directly, rather than 

going through the purchasing 

processes, simply because in the 

past when the processes where 

paper-based it was quicker and 

easier to replenish paperclips 

and notepaper directly than by 

fi lling out requisitions and 

waiting for orders to be 

processed. 

All of this has resulted in a nonproduction 

purchasing 

nightmare of more than 4 500 

suppliers, many of whom are 

involved in small or once-off 

transactions, resulting in a lack 

of cost control. 

There was a clear need to 

bring purchasing under tighter 

control, and optimise costs. 

Lead Buying 

The advent of the International 

Purchasing Services (IPS) 

concept of Lead Buying 

presented DCSA with an exciting 

opportunity to do exactly that. 

„

26 South Africa Projects 

Derek Jooste of the Win-Win Group facilitates the Purchasing 

Services workshop at Mpekweni. 

Not only could the various 

locational buying structures be 

integrated using the concept, 

but both DCS and dFM could 

be brought into the loop. In 

addition, the recently introduced 

SAP R/3 Enterprise Resource 

Management System, provided 

the information technology 

opportunity for single, seamless 

processes while maintaining 

business independence. 

As a cherry on the top, the 

somewhat negatively named 

“Non-Production Purchasing and 

Services” Division could rename 

itself “Purchasing Services” to be 

in line with the IPS. 

Divisional Manager, Ernest 

Kleynhans, used his engineering 

and business excellence 

experience to implement the 

changes. 

The Lead Buyer concept (see 

Global Supplier 3rd Quarter 

2002) organises all non-production 

good and services into 

288 non-production 

commodities, arranged into 69 

“classes” and which in turn fall 

into one of 12 “families”. 

Although each family may have 

a number of buyers, there is one 

Lead Buyer responsible for each 

family to ensure accountability. 

The aim, explains Kleynhans, is 

to avoid duplication of orders and 

make tracking easier and more 

transparent, particularly when 

combined with the power of SAP. 

“Lead Buying is a more professional 

approach to purchasing 

that optimises purchasing 

processes and eliminates extra 

work, particularly manual work 

because SAP automates much of 

the process and makes it much 

faster. 

New world 

A major change in the way an 

organisation buys its supplies 

demands new mindsets - from 

the suppliers who are providing 

the goods or services to the 

customer who is receiving them, 

and Kleynhans knows that to 

start with there will be some 

resistance to the idea. 

“It is a whole new philosophy. 

We are moving from a situation 

where buyers were just 

capturing information and 

moving paper around to a 

dynamic, globally integrated, 

purchasing world. I know that it 

will be a long process to slowly 

win over our customers because 

they are used to buying on their 

own - but we just cannot go on 

with a situation where we have 

some 4 500 suppliers on our 

database. 

“There are exorbitant costs in 

Herbert Tshaka, Nathan May and Simangele Gumede at the 

Purchasing Services workshop. 

requisitions, and we are rapidly 

moving to an uncontrollable 

situation in our accounts 

payable. 

“In the old system, the bundling 

of volumes was just not possible, 

and empowerment could not be 

realised, but the new concept 

will change all this.” 

High-level support 

The new concept enjoys the 

highest levels of support in the 

company precisely because of 

the enormous benefi ts it can 

provide. 

Apart from enjoying the total 

support of the Management 

Board, DCSA’s implementation 

is being watched closely by 

DaimlerChrysler International’s 

Vice-President of International 

Purchasing Services, Dr Heinrich 

Reidelbach and Director for 

Global Procurement Integration, 

Klaus Saalmann, who has 

personally briefed DCSA 

Management Board Members on 

„ 

The cover of a new Guide to Purchasing published to help DCSA employees 

follow the correct processes for buying - from creating an electronic 

purchasing requisition to creating a purchase order and displaying various 

information screens.

Manager for Purchasing Services, 

Ernest Kleynhans, at the 

Mpekweni workshop. 

it as well as the Chairman of 

DCS, Richard Howard, and dFM 

Chief Executive, David Hackney. 

“We went through the processes 

and the opportunities that can 

come out of them, and they were 

all very excited that we will be 

able to provide a true benchmark 

on costs and not just be chasing 

targets,” Kleynhans explained. 

“Our challenge will be to move 

from a situation where more 

than half of non-production 

spending is maverick spend. 

“These are only the fi rst steps 

South Africa 

DCAG’s Director for Global 

Procurement Integration, Klaus 

Saalmann, at DCSA’s Purchasing 

Services workshop. 

towards purchasing excellence 

and we have far greater plans in 

store. It is an absolutely exciting 

change.” 

Analysis 

Before any steps are taken, 

however, Kleynhans stresses that 

there has to be proper understanding 

of what is involved. 

A team of students under 

Norbert Thom from the 

University of Applied Science in 

Hamburg will be undertaking an 

in-depth analysis of the spending 

DCSA’s new purchasing process will make it easier for purchasing to be 

managed and controlled in a fair and transparent manner. 

Projects 

by each “family” of commodities 

to understand exactly what will 

be required in terms of 

manpower and resources to 

implement the concept fully. 

Each buyer has a detailed 

Manual to help, and a special 

Guide to Purchasing has been 

published to help customers 

within the company to follow 

the correct SAP processes from 

creating requisitions and 

purchase orders to seeing what 

is in stock, where and how it can 

be reserved. 

“We have to make everyone 

within the organisation 

understand that we simply 

cannot continue with the present 

situation. The purchasing 

functions must be integrated 

back into Purchasing, but we 

need to do it constructively.” 

Workshopping 

As a fi rst step towards getting 

active buy-in, all 35 Purchasing 

Services staff members from all 

three DCSA locations, DCS and 

dFM were invited to a Team 

Effectiveness Workshop at 

Mpekweni near East London. 

The three-day workshop, under 

the theme “Play to Win”, 

provided the opportunity to 

launch the new Lead Buyer 

Manual and to make it clear 

to everyone that purchasing was 

indeed moving into a new world. 

An added bonus was the 

presence of Saalmann, who 

could provide the staff members 

with fi rst-hand knowledge of 

the concept’s implementation 

globally, and fi rm proof of the 

high-level of support for the 

changes. 

“That he was able to come all 

the way from Germany to be 

with us and to share time with 

us providing committed support 

in our challenges. We were able 

to show everyone there, that we 

27 

were not alone.” 

Also invited were representatives 

of various functions 

supporting purchasing, such as 

Cost Planning, Contracts and 

Information Technology. 

“The Cost Planners could explain 

Open Book calculations and 

which steps to follow,” 

Kleynhans said. “A Legal 

Specialist from Contracts 

explained the development of 

Service Level Agreements with 

suppliers, while an IT specialist 

talked about re-engineering 

processes, where we are heading 

in the future and the value 

of bringing everyone into a 

common purchasing system. 

The workshop broke into smaller 

sessions facilitated by the 

graduate students from Germany 

to develop hypothetical 

commodity strategies and 

understand DCSA’s key strategic 

initiative of Black Economic 

Empowerment (BEE) in supplier 

development. 

Apart from concentrated work 

and study, the weekend also 

aimed at providing fun - with 

teambuilding exercises 

facilitated by Derek Jooste of the 

Win-Win Group. 

“It was important we have 

fun and get to know each 

other. Building relationships is 

essential if one team is divided 

in three different locations and 

even into three different 

companies. Communication 

between team members is the 

key to success. 

“Bringing a team together is one 

thing - keeping them together is 

another.”

28 

South Africa Empowerment 

Aligning BEE across the 

motor industry 

Aligning BEE across the motor 

industry BLACK ECONOMIC 

Empowerment (BEE) has become 

one of the most critical strategic 

challenges facing South African 

business today, and for DCSA it is 

a key strategic goal. 

Recently, DCSA’s Business 

Excellence Specialist for BEE, Chris 

Mashigo, took a look at how the 

challenge was being met in the 

United States, and how lessons learnt 

there could be applied to South 

Africa. 

Although the US programme is 

aimed at increasing the representation 

of minority groups in business, 

most of the processes, problems 

and solutions are the same - how 

to get groups of people who have 

been excluded from the mainstream 

economy into playing a meaningful 

role in that economy. 

Mashigo was able to gather 

information about the Chrysler Corporation’s 

award-winning Diversity 

Supplier Development program to 

assist DCSA to further diversify its 

supply base by increasing black 

supplier participation to 30% by 2011 

(full report in Global Supplier 4th 

Quarter 2002). 

In South Africa, BEE in the motor 

industry is being tackled in a joint 

initiative between all seven OEMs 

and the Department of Trade and 

Industry (DTI), and Mashigo says the 

task is to promote both side and 

downstream empowerment with Tier 

1 suppliers. 

Given the number of suppliers 

common to most European OEMs in 

South Africa, a common database of 

all suppliers is in the process of 

being compiled that will enable the 

industry to more accurately assess 

the probabilities for empowerment 

across all spend categories. 

“This will help purchasing managers 

to set more realistic targets for 

empowerment,” Mashigo said. 

It is in this area that the US 

experience, and Chrysler’s role in it, 

can make a signifi cant contribution. 

Among the central questions are: 

What makes a company black 

empowered? How can an OEM 

be sure that a supplier who is 

considered to be empowered, 

remains empowered? 

Simply adding a few black directors 

to a company’s board does not 

necessarily mean the company is 

now “black empowered”, nor can 

there be any certainty they will 

remain on the board once a contract 

has been signed. 

„

South Africa Empowerment 

29 

Auditing empowerment 

To get around these, and other critical questions, the 

US formed the National Minority Supplier Development 

Council (NMSDC), which is independent of both industry and 

government and acts as a recognised certifying authority. 

Companies are audited by the NMSDC 

against set criteria and certifi ed by the 

council as being a minority supplier. The 

certifi cate is valid for a set time period, and 

the company has to be reaudited regularly 

to ensure it retains its status as a minority 

supplier. 

Mashigo believes a similar certifying 

council could be established in South 

Africa. 

The NMSDC has recognised Chrysler on 

three occasions during the past 19 years 

as ‘Corporation of the Year’ for outstanding 

supplier diversity initiatives, including 

Minority Enterprise Initiative (mentor 

program), the innovative development of 

2nd Tier minority content to its suppliers, 

and the implementation of mandatory 

minority content clauses on all purchase 

orders and requests for quote. 

The result has been that minority content 

in Chrysler Group vehicles has grown from 

$25 million in 1983 to $3 billion for the 

2001 calendar year. 

“Chrysler has 30 years of experience in 

diversity management, and is the industry 

leader in the US, and we feel they can 

provide valuable experience in areas such 

as accessibility to business opportunities 

for disadvantaged groups, supplier support 

and internal strategies. 

“There seems little point in us trying to 

reinvent the wheel, and we believe we 

can leapfrog with their experience and 

knowledge,” he says. 

DCSA will be releasing a new Guide to 

Doing Business with DCSA to help get both 

employees and suppliers to buy in line with 

DCSA’s strategies, and consistent with the 

wider strategic objectives of the DTI BEE 

initiative. 

“The guide will present our corporate 

strategy on empowerment and will help 

to simplify and standardise the process. 

We want to get everyone knocking on the 

same door and following the same process,” 

Mashigo explained. 

The Guide is expected to be released from 

April. 

Although Mashigo is leaving DCSA to 

take up a new position with the Coega 

Development Corporation, he stresses that 

the initiatives will not stop, and will 

continue to be driven in DCSA with 

commitment and enthusiasm.

30 South Africa News 

100 000th 

DCSA celebrated the 100 000th 

Mercedes-Benz C-Class off the line 

in East London by presenting it 

to South Africa’s First Lady, Mrs 

Zanele Mbeki, for donation to a 

charity of her choice. 

Mrs Mbeki immediately handed over 

the very special silver C180 with grey 

leather interior to a King William’s 

Town-based women’s development 

project, Sosebenza Sonke, of which 

the wife of the late Steve Biko, Mrs 

Nontsikelelo Biko, is vice-chairperson. 

DCSA’s Chairman, Christoph Köpke, 

said the presentation of the car to 

the First Lady represented a gift for 

stability because it was women who 

brought stability to communities. 

“We have reached the stage where 

we need stability, and one thing 

that women bring to a community 

is stability. We have got to continue 

building cars here, and we have got 

to have stability, particularly in our 

families and community, for this to 

happen,” Köpke said. 

Mrs Mbeki said she wanted to present 

the car to Sosebenza Sonke because 

it was a small, struggling, nongovernmental 

organisation that was 

committed to empowering women to 

be self-suffi cient. 

Accepting the gift, an overwhelmed 

chairperson of Sosebenza Sonke, Busi 

Mneno, accompanied by Mrs Biko, 

said they had been operating since 

1997 without any help and using her 

own personal car. 

C-Class 

The NGO was formed to teach 

women sewing and beadwork skills, 

and recently extended its work 

to caring for people living with 

HIV/AIDS through a soup kitchen, 

and organising support groups. 

Both the Premier of the Eastern Cape, 

the Reverend Makhenkesi Stofi le, and 

the Mayor of Buffalo City, Sindisile 

Maclean, pledged their full support 

for the plant’s “Race for 204”, 

underlining the importance of the 

plant for the city and province. 

Premier Stofi le said the achievement 

of the 100 000th car was not 

just because the company had good 

managers, but because all “members 

of the pride” had a clear understanding 

of what was needed to build 

world-class vehicles. 

“You have our support and our 

prayers. We will give you all the 

political support we can muster,” the 

Premier said. 

Mayor Maclean described the relationship 

between DaimlerChrysler 

and the city as “life-supporting”, and 

that DCSA had successfully localised 

the global economy for the city. 

“I want to reiterate our unshakeable 

support in your ‘Race for 204’. The 

city stands fi rmly behind you.”

CLK-Class 

South Africa 

News 

Following the exciting CLK-Class launched in June 

2002, Mercedes-Benz has again redefined standards 

in high-performance sports coupès by introducing the 

CLK 55 AMG to South Africa. 

With a redeveloped AMG 5,5 litre 

V8 engine, the CLK 55 AMG bears 

witness to the ability of Mercedes-AMG 

designers to instil sportiness in a 

manner that is both elegant and 

unobtrusive, yet dynamic. 

Pronounced style features such as 

the uninterrupted line of frameless, 

fully retractable, side windows, louvered 

radiator grille with its central Mercedes 

star, twin-headlamp face and sweeping 

roofl ine underline the coupè’s selfconfi 

dent character. With a newly 

developed suspension and sophisticated 

optional equipment, the new coupè 

HIV/AIDS Assistance 

Announcing the new policy, DCSA became 

only the second company in the world, and 

fi rst in South Africa, to extend its HIV/AIDS 

treatment programme to employees who lose 

their jobs through no fault of their own. 

Management Board Member for Human 

Resources, Johann Evertse, said the 

Management Board had agreed that any 

employee who had to leave the company would 

continue to receive DCSA’s full support in 

HIV/AIDS treatment, including anti-retroviral 

medication. 

offers a unique 

experience for 

its class. 

The CLK 55 

AMG develops 

an impressive 

maximum 

output of 270 

kW, performance typical of a sports car. 

The powerful engine accelerates to 100 

km/h from rest in only 5.2 seconds. 

Each engine is precision assembled by 

individual engineers at Mercedes-AMG 

in Affalterbach, and bears the engineer’s 

personal signature on the engine plaque 

DNI goes live 

ALL EYES were focused on the Western 

Cape, when the first DaimlerChrysler dealer 

went ‘live’ with DCSA’s new Distributed 

National Inventory (DNI) system on Monday, 

17 February. 

After many months of planning, developing and 

testing, Sandown Commercial Vehicles was the 

fi rst dealership in the roll-out schedule to be 

switched on. 

DCSA EMPLOYEES who lose their jobs through redundancy or retrenchment will 

still be able to benefit from DCSA’s HIV/AIDS programme. 

“This very important decision, which as far 

as I know is the fi rst of its kind in South 

Africa, will extend to all employees and their 

dependants who leave the company due to 

redundancy,” he said. 

DCSA’s HIV/AIDS Co-ordinator, Dr Clifford 

Panter, said the only condition was that 

the employee had to be a member of the 

company’s Aid for AIDS programme before 

leaving the company. 

as a guarantee to the customer of highperformance 

technology from Mercedes- 

AMG. 

The CLK 55 AMG was introduced to the 

local market at R800 000. 

31 

DNI uses the advanced new Kerridge-based 

DaimlerChrysler Dealer Management System 

(DCDMS) to control parts that are stocked in 

dealers regionally in such a way that they 

become more accessible, faster, at point of use. 

It is based on the concept of “being able to 

improve customer service by making the part 

available where it was most likely to be needed - 

in the hands of the technician.” 

The benefi ts of the system will only become 

apparent when all dealers in a region are 

switched onto the system and able to use its 

search facilities. 

DCSA’s HIV/AIDS Co-ordinator, 

Dr Clifford Panter.

Together in success 

Global Supplier 

An Extended Enterprise®- Magazine 

for DaimlerChrysler suppliers 

and associates 

4th Quarter 2002 

South African Edition 

Published by DaimlerChrysler South Africa (Pty) Ltd 

South African Edition: Donna Mhlanga, 

P. O. Box 671, East London, 5200, South Africa. 

Tel: +27 (43) 706-2880, Fax: +27 (43) 706-2554 

donna.mhlanga@daimlerchrysler.com 

Editor: Mike Chandler, River Publications 

Box 19332, Tecoma, 5214, South Africa. 

Tel: +27 (43) 743 -5575, Fax: +27 (43) 743-5110 

river@intekom. co. za 

Layout: Debra Grunewald: Art Director, 

River Publications 

Photo credits: DaimlerChrysler 

Printing: Sisonke Printers, South Africa 

Your contacts around the world 

South Africa: DaimlerChrysler South Africa (Pty) Ltd., 

Donna Mhlanga, PO Box 671, East London 5200, 

South Africa 

Phone +27 (43) 7 06-28 80, Fax +27 (43) 7 06-25 54, 

donna.mhlanga@daimlerchrysler.com 

U.S.A.: DaimlerChrysler Corporation, 

Sabine Brändle, GP & S/PCom 

CIMS 484-06-10, Auburn Hills MI USA, 48326-2527 

Phone +1 (248) 5 76-37 35, Fax +1 (248) 5 76-21 93, 

sabine.braendle@daimlerchrysler.com 

Brazil: DaimlerChrysler do Brasil Ltda., 

Magdalena Thaler Cuevas, Av. Alfred Jurzykowski, 

562, Cep. 09680-900, Sao Bernardo do Campo – SP 

Phone +55 (11) 41 73-62 94, Fax +55 (11) 41 73-84 00, 

magdalena.t.cuevas@daimlerchrysler.com 

Editor: Hans-Jürgen Mülln 

Editorial direction: Christiane Morys 

Layout: Désirée von Seld (Art Direction) 

Editorial office and design: CD Communication 

GmbH, Hanauer Landstraße 135-137 

60314 Frankfurt am Main, Germany 

www.cdcommunication.de 

Editorial staff: Sabine Brändle, Laurens Breurkens, 

Seval Böhm, Claudia Dautermann, Günter Fabricius, 

Frank Haas, Irina Jamison, Ingo Kaufmann, Tina Lösch, 

Sabine Schulz, Heike Schulze, Karin Trüg, 

Photo credits: DaimlerChrysler, Delphi Deutschland 

GmbH

GlobalSupplier - Daimler

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