Gary Mabrey.mdi - Indiana Logistics
Gary Mabrey.mdi - Indiana Logistics
Gary Mabrey.mdi - Indiana Logistics
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9-25-2007<br />
Honda Manufacturing of <strong>Indiana</strong>, LLC<br />
<strong>Gary</strong> <strong>Mabrey</strong><br />
Purchasing Manager
Honda Supply Chain Innovation<br />
Honda Overview<br />
Honda in North America<br />
Honda in <strong>Indiana</strong><br />
Honda N.A. <strong>Logistics</strong><br />
Transportation Management<br />
Routing<br />
Supplier Evaluation<br />
Supplier Requirements<br />
Supplier Strategy
Honda Supply Chain Innovation<br />
Honda Overview<br />
Honda in North America<br />
Honda in <strong>Indiana</strong><br />
Honda N.A. <strong>Logistics</strong><br />
Transportation Management<br />
Routing<br />
Supplier Evaluation<br />
Supplier Requirements<br />
Supplier Strategy
Honda of America (OH)<br />
North American Production<br />
Honda Canada<br />
Honda Power<br />
Equipment (NC)<br />
Honda South<br />
Carolina<br />
Honda Mfg.<br />
<strong>Indiana</strong><br />
Honda de Mexico<br />
Honda Mfg. Alabama<br />
In Construction<br />
Honda of Canada Mfg. Engine Plant<br />
Honda Manufacturing of <strong>Indiana</strong>, LLC<br />
Honda Aircraft Company, Inc.
U.S. Car & Light Truck Sales<br />
1,509,358<br />
1,349,847<br />
1,394,398<br />
1,462,472<br />
Import<br />
Domestic<br />
940,386<br />
1,009,600<br />
1,076,893<br />
1,158,860<br />
1,247,834<br />
1,207,639<br />
77%<br />
79%<br />
79%<br />
78%<br />
854,879<br />
843,928<br />
783,102 803,367<br />
768,985<br />
768,845 788,230 794,579<br />
738,306<br />
716,546<br />
693,515<br />
75% 75% 75%<br />
78% 76%<br />
552,389<br />
508,420<br />
401,072<br />
34%<br />
26% 26%<br />
43%<br />
49% 50% 54% 60% 62%<br />
58%<br />
62%<br />
68%<br />
82% 73%<br />
13 Consecutive<br />
Years of Growth<br />
in Sales<br />
13%<br />
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Suppliers in North America<br />
Number of Suppliers<br />
•• 600+ OEM Suppliers<br />
supplying our our N.A. Mfg Mfg<br />
facilities ($18 Bil) Bil)<br />
•• 5,000 MRO Suppliers<br />
for for N.A. OEM<br />
Locations of Suppliers<br />
•United States:<br />
Suppliers located in in 34 34<br />
States<br />
•Canada: Suppliers<br />
located in in 2 Provinces<br />
Honda OEM Suppliers
Purchasing & <strong>Logistics</strong> Scope<br />
Supply Base<br />
Tier 3 Tier 2 Tier 1<br />
Manufacture Ship Sell Service<br />
Design<br />
Engineering<br />
MRO<br />
Mass Merchants<br />
& Warehouse<br />
Clubs<br />
Parts<br />
Distribution<br />
OEM Parts<br />
Manufacture<br />
Ship<br />
OEM’s<br />
Service<br />
Center<br />
OEM Parts<br />
OEM<br />
Equipment/<br />
Facilities<br />
Raw<br />
Materials<br />
Items Directly Assy to Product<br />
Raw Materials<br />
Indirect<br />
Materials<br />
Quality<br />
Inventory<br />
Management<br />
Purchasing’s Responsibility for Q,C,D,D<br />
Cost<br />
Production<br />
Support Items or<br />
Services<br />
MRO<br />
Delivery<br />
Machines &<br />
Equipment<br />
Retail<br />
Dealers<br />
Construction<br />
Development<br />
Financing<br />
Insurance
Honda Supply Chain Innovation<br />
Honda Overview<br />
Honda in North America<br />
Honda in <strong>Indiana</strong><br />
Honda N.A. <strong>Logistics</strong><br />
Transportation Management<br />
Routing<br />
Supplier Evaluation<br />
Supplier Requirements<br />
Supplier Strategy
Groundbreaking Mar 19th ‘07<br />
Key Facts Announce<br />
3/19<br />
Company Name: Honda Manufacturing of <strong>Indiana</strong>, LLC<br />
Model: Civic sedan<br />
Company President: Yuzo Uenohara<br />
•Investment: $550 million<br />
•Mass-Production: Fall ’08<br />
•Employment: 2000 associates<br />
•Capacity: 200,000 units/year<br />
Construction on Schedule<br />
HAM HMIN = ~165 miles
<strong>Indiana</strong> Site Selection<br />
AEP<br />
MAP,ELP<br />
Greensburg<br />
100 miles<br />
200 miles<br />
300 miles
Central Location to N.A. Supply Base<br />
Greensburg, IN<br />
Central Location to our North American Supplier Network
Greensburg Site Layout<br />
Honda<br />
~1700 Acres of Land
Greensburg Site Layout<br />
AHM<br />
CBU<br />
Lot<br />
Welcome Center<br />
&<br />
Assoc Parking<br />
Consolidation<br />
Center (On-site)<br />
New Bridge for<br />
Truck Traffic<br />
CC On-Site Impact to Suppliers<br />
Less Inventory in System<br />
Shorter re-action time if<br />
mis-shipment occurs<br />
Shipment confirmation<br />
must be precise as parts<br />
leave supplier dock<br />
Delivery Status &<br />
Communications must be<br />
improved<br />
Rail
Greensburg Site Layout<br />
N<br />
STAMPING<br />
PLASTIC<br />
INJEC.<br />
PA<br />
MIX<br />
PA<br />
STORAGE<br />
WWT<br />
FAC.<br />
MECH.<br />
CC<br />
MAT’L<br />
SER-<br />
VICE<br />
WELD<br />
PAINT<br />
MAT’L<br />
SER-<br />
VICE<br />
ASSEMBLY<br />
VQ<br />
ADMIN/<br />
CAFE<br />
AF SUB<br />
TRAINASSY<br />
WELCOME<br />
CENTER<br />
TANK<br />
FARM
Groundbreaking Mar ‘07
Greensburg Site Layout<br />
Honda Supply Chain Innovation<br />
Honda Overview<br />
Honda in North America<br />
Honda in <strong>Indiana</strong><br />
Honda N.A. <strong>Logistics</strong><br />
Transportation Management<br />
Routing<br />
Supplier Evaluation<br />
Supplier Requirements<br />
Supplier Strategy
Supply Chain Innovation<br />
Challenge:<br />
Remove Waste from the Entire Value Stream<br />
Supplier<br />
Receiving<br />
Mfg Process<br />
Shipping<br />
Customer<br />
How: Improve Manufacturing Characteristics<br />
Quality Cost Delivery<br />
Development<br />
Supplier<br />
Management<br />
Approach<br />
Genba: Go to the spot
Transportation Management Control<br />
Route Control & Vanning Innovation<br />
Q<br />
C<br />
D<br />
D<br />
M<br />
Load Configuration<br />
Supply Chain Modeling<br />
Verifying the engineered load layout to<br />
confirm trailer optimization.<br />
Mapping of the supply chain<br />
model<br />
Network Optimization<br />
Routing<br />
Optimizing network assets<br />
(Supplier warehousing and cross-dock locations)<br />
Defining best routing options inside the<br />
established network.
Transportation Management Control<br />
Traditional Route Control and Vanning Process<br />
Q<br />
C<br />
D<br />
D<br />
M<br />
Variables<br />
Honda Control Process<br />
Production<br />
Changes<br />
Emergency<br />
Order<br />
Supplier<br />
Prod’n Delay<br />
Automated Manual<br />
Vanning<br />
Calculation<br />
Route<br />
Correlation<br />
Waste<br />
Supplier<br />
Supplier Load Process<br />
Receive<br />
Data<br />
Layout<br />
Load<br />
<strong>Logistics</strong> Supplier Company<br />
Route Change<br />
Receive<br />
Data<br />
Setup<br />
Routes<br />
Load<br />
Trailer<br />
Waste<br />
Execute<br />
Routes<br />
Waste<br />
OPEN<br />
SPACE<br />
Problems<br />
• manual process<br />
• extra steps<br />
• open space<br />
• high cost<br />
• no flexibility<br />
Process Innovation Objectives<br />
• Optimize Load Configuration<br />
• Increase efficiency of the Transportation Network<br />
• Allow Supply Chain Modeling<br />
• Improve Routing Flexibility
Honda Supply Chain Innovation<br />
Honda Overview<br />
Honda in North America<br />
Honda in <strong>Indiana</strong><br />
Honda N.A. <strong>Logistics</strong><br />
Transportation Management<br />
Routing<br />
Supplier Evaluation<br />
Supplier Requirements<br />
Supplier Strategy
Supplier Relationships<br />
When Honda Starts a Business Relationship With a New Supplier, the<br />
First Step Is to Explain Our Short and Long Term Expectations for<br />
Them in the Following Areas:<br />
QUALITY<br />
COST<br />
DELIVERY<br />
DEVELOPMENT<br />
MANAGEMENT<br />
Through Mutual Efforts We Establish and Enhance<br />
Mutual Trust, - the Basis of Our Relationship.<br />
Self-Reliant World Class Supply Base
Sourcing Philosophy<br />
Honda Philosophy is the cornerstone of our<br />
Purchasing Philosophy<br />
Honda Philosophy<br />
Honda Company Principle<br />
Respect for the Individual:<br />
• Initiative<br />
• Equality<br />
•Trust<br />
The Three Joys:<br />
• The Joy of Buying<br />
• The Joy of Selling<br />
• The Joy of Creating<br />
“Maintaining a global viewpoint, we are dedicated to<br />
supplying products of the highest quality yet at a<br />
reasonable price for worldwide customer satisfaction.”<br />
Soichiro Honda<br />
1954(modified in 1998)<br />
PURCHASING MISSION<br />
Quality parts,<br />
On-time, Right Quantity,<br />
at a Globally Competitive Price.<br />
Relationship with Suppliers<br />
1.Open Door Policy<br />
2.Fair & Clear Business Relationship<br />
3.Mutual Trust<br />
=Respect to Supplier’s Business
Management Expectations<br />
MANAGEMENT<br />
Honda’s expectation of suppliers extends beyond the<br />
typical quality, cost, delivery and development areas to<br />
also include a focus on corporate citizenship.
Honda Supply Chain Innovation<br />
Honda Overview<br />
Honda in North America<br />
Honda in <strong>Indiana</strong><br />
Honda N.A. <strong>Logistics</strong><br />
Transportation Management<br />
Routing<br />
Supplier Evaluation<br />
Supplier Requirements<br />
Supplier Strategy
•Performance Expectations<br />
•Delivery: 98% On time arrival…within 30 minute tolerance of scheduled window time<br />
•Quality: No Carrier initiated damages<br />
•Cost: Continuously provide best cost with ongoing reduction opportunities<br />
•Transportation Management Expectations<br />
•Reporting: Timely reporting of established lane events with Honda’s 3PL<br />
•Billing: Manage billing process within Honda’s 3PL Freight Bill Audit function<br />
•Equipment Specifications<br />
Carrier Requirements<br />
Carrier Requirements<br />
General<br />
•53 Foot Trailers…unless otherwise requested for specific requirements<br />
•E-Track equipped for proper security of freight within trailer
Carrier Requirements<br />
Regulatory<br />
•Insurances:<br />
•Carrier insurance coverage adequate to meet Department of Transportation<br />
requirements for the region in which freight is being transported<br />
•Proof of insurance provided to Honda listing Honda as additional insured<br />
•Company & Driver Qualifications (Cross Border Transport):<br />
•Carrier must be C-TPAT (Customs Trade Partnership Against Terrorism) certified<br />
to be awarded a transportation lane which crosses a North America border<br />
•Driver FAST (Free And Secure Trade) certified in order to be qualified to execute<br />
a Honda cross North America border transport
Honda Supply Chain Innovation<br />
Honda Overview<br />
Honda in North America<br />
Honda in <strong>Indiana</strong><br />
Honda N.A. <strong>Logistics</strong><br />
Transportation Management<br />
Routing<br />
Supplier Evaluation<br />
Supplier Requirements<br />
Supplier Strategy
Carrier Business Strategy<br />
Utilization of Diverse Carriers<br />
‘Local Carriers’ used as often as possible<br />
Regionalized Carriers used when lane is<br />
out of “Local Carriers’” scope<br />
National Carriers used when lane is out<br />
of “Local Carriers’” and “Regional<br />
Carriers’” scope<br />
National<br />
28.0%<br />
Honda of America<br />
All lanes are subject to open bid and<br />
carriers are invited to competitively bid<br />
on all areas. Bids awarded based on<br />
competitiveness.<br />
Business Distribution:<br />
Local<br />
24.3%<br />
National<br />
19.8%<br />
Honda Manufacturing of Alabama<br />
Local<br />
15.5%<br />
Regional<br />
47.7%<br />
Regional<br />
64.6%<br />
Honda <strong>Indiana</strong> Main Opportunity Expand Local Carriers to improve route efficiency
How to Become a Honda Supplier<br />
www.hondasupplyteam.com<br />
Link<br />
Submit Company Information to:<br />
Packaging and Transportation:<br />
Mindi Munz<br />
International Parts Supply<br />
25000 Honda Parkway<br />
Marysville, OH 43040<br />
937-642-5000 ext. 62833<br />
Include Company Brochure:<br />
-Describe available services<br />
-Contact Information
Thank You
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