Mercedes 2002 Annual Report Download - page 65

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Reduced variety of parts due to concentration
in material groups
Within the context of the commodity strategies initiated
by the Executive Automotive Committee (EAC), we also
grouped together suppliers with identical or similar
product ranges and defined groups of common parts or
materials. With an optimized supply base Daimler-
Chrysler can increase purchases from its best-perform-
ing suppliers and lower their costs as well.
By defining common commodities, significantly higher
volumes of single parts or materials can be purchased.
This also creates economies of scale for our suppliers.
In order to protect our brands, only those components
which are of minor importance for brand identity are
selected for such grouping (see pages 42-43).
Implementation of the commodity strategies
Within the framework of implementing our commodity
strategy we took the following decisions in 2002:
In the past, DaimlerChrysler used 14 different steer-
ing pumps in its various vehicles. Investigations have
shown that it is possible to reduce this number, so that
by 2006 just three versions will be needed. This
standardization will also result in a smaller number of
suppliers.
One common tire-pressure sensor is to be developed
from the three existing components. The new design
will meet the needs of Mercedes Car Group, Chrysler
Group and Mitsubishi Motors, our alliance partner,
in terms of electrical, temperature and system require-
ments. In addition, substantial savings will be made by
reducing the variety of valve designs and by standar-
dizing rear-wiper motors. In the future, identical motors
will be used in several vehicle lines. We have also been
able to use price transparency in exhaust systems in one
business unit to eliminate price differentials elsewhere.
Yet another example is an agreement among the
Mercedes-Benz Trucks and Freightliner/Sterling/
Thomas Built Buses business units to use identical
air-conditioning compressors in some of their vehicles.
And together with the development departments we
are currently analyzing whether Mercedes-Benz radiators
can be fitted to Freightliner trucks.
In order to achieve even greater cost savings for
future models and vehicle series, we hold frequent work-
shops in which know-how is pooled and new ideas
are generated.
Global Procurement & Supply |59
Substantial savings potential from combined procurement: In the future,
only one type of sensor will be used worldwide to measure tire pressure.