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May 28, 2008

Daimler Vans Manufacturing in Ladson SC Integral part of the global Daimler production and supply networks. May 28, 2008. Best Practices…?. Agenda. Daimler Vans Manufacturing LLC. 1. Mercedes Benz Vans. 2. Daimler AG. 3. 3.

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May 28, 2008

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  1. Daimler Vans Manufacturing in Ladson SCIntegral part of the global Daimler production and supply networks May 28, 2008

  2. Best Practices…?

  3. Agenda Daimler Vans Manufacturing LLC 1 Mercedes Benz Vans 2 Daimler AG 3 3

  4. Dodge and Freightliner SprinterProducts of Daimler Vans Manufacturing LLC

  5. The Logistics Process at DVM is designed according to the common Daimler Supply System All Logistics and Supply Processes will follow the structure of the Supply Backbone – with the enhanced vision to shape the world’s most effective supply chain

  6. Agenda DaimlerVans Manufacturing LLC 1 Mercedes Benz Vans - The Sprinter 2 Daimler AG 3 6

  7. Mercedes-Benz Vans Sprinter Products Dodge & Freightliner Sprinter Mercedes-Benz Sprinter VW Crafter Crew Cab Cab Passenger Van Cargo Van

  8. Process Landscape Logistics Product Development Process Order Process Development Ø Logistics compatible Product Design Ø Program Planning Ø Specification Sheet and Delivery Instructions Ø Order Processing Suppliers Material Handling Engineering Ø Cost Calculation for Supply Chain (TCO) Engineering Technical Support Ø Container Planning/Design Ø Production Control Ø Ø Planning of Transportation Logistics Documentation Ø Ø Distribution Sales & Marketing Docu- mentation Order Production Customer Distribution Production Center Control Change- Mgmt Ø Implementation Control IT Ø Prototypes Material Ø Optimization of Call Ups Supply Suppliers Ø Securing availibility of Materials Ø Planning of Relocation Logistics Procurement Process • The Logistics Process Landscape was designed on basis of the specification sheet Sprinter, the Mercedes Production System (MPS) and the Daimler Supply System (DSS). • Target: to improve the economic efficiency and qualitative optimum by standards and individual solutions

  9. Major Logistics Targets • Simple, economic and solid material supply processes • Continuous transparency within the supply chain (inventory, deadlines, locations) • Optimized inventories in supply chain • Direct delivery to point of use • Minimizing handling by direct deliveries (JIS, JIT) and one-tier supply process (RLC) • One Piece Flow for sequenced parts • One Box Flow (same container from supplier to point of use) for JIT- and RLC- material • Ordering of supplies by consumption in production lines (Pull Princip) • Continuous use of reusable containers • Container concept that allows pool-processing and modular, fold-away containers • Standardized KPI‘s (Cost & Quality) and Continuous Improvements

  10. Cargo Flow - Duesseldorf Sprinter PlantDaily 550 Trucks in and out Abroad 90 22 East 11 North Germany 110 Total: 280 trucks daily Total: 270 trucks daily 122 West Trucks daily Trucks daily from Germany Trucks daily to harbors Stock 45 South 8 North 20 West Trucks daily from Europe Barges weekly 12 East 29 South Truck daily from overseas Railway cars daily

  11. Agenda DaimlerVans Manufacturing LLC 1 2 MercedesBenz Vans Daimler AG 3 11

  12. All Daimler revenues from automotive business and automotive-related services Joint Ventures Note: Additionally 48,078 employees in sales organization 12

  13. The Global Ocean Container Network

  14. The Global Ocean Container Network 2007Incorporating Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, Chrysler, GSP/MOPAR

  15. The Global Ocean Container Network 2007 by Trade Main routes Europe  NAFTA  Europe 137.500 TEU 56 % Europe  Asia-Pacific/Middle East  Europe 39.400 TEU 17 % Europe  South America  Europe 27.350 TEU 11 % Europe  Africa  Europe 23.200 TEU 9 % Others (Cross-trades) 17.550 TEU 7 % Total 245.000 TEU 100 %

  16. The Global Airfreight Network

  17. The Global Airfreight Network 2007 Incorporating Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, Chrysler, GSP/MOPAR

  18. The Global Airfreight Network 2007 by Trade Main routes Europe  NAFTA  Europe 26.700 tons 42 % Europe  Asia-Pacific/Middle East  Europe 16.600 tons 26 % Europe  Africa  Europe 4.130 tons 7 % Europe  South America  Europe 4.100 tons 7 % Others (Cross-trades) 11.470 tons 18 % Total 63.000 tons 100 %

  19. Global CEP stands for „Courier-Express-Parcel Services“ and incorporates time critical, international shipments within the entire Daimler network

  20. Major cargo flows of the global CEP network are Intra-NAFTA, Intra-Europe and Intra-Middle East 7 t 49 t 0.7 t 41.5 t 3 t 4.486t 437t 125 t 469t 3.056t 146 t 5 t 50 t 50 t 11 t 18 t 114 t 36 t 250 t 2 t 0.3 t 13 t 2 t 0.05 t 53 t 13 t 2 t Total volume: 9.470 t Total turnover: 35M € 0.08 t

  21. Our Challenges in a Company with Global Production- and Supply Networks Suppliers Customers Daimler Plants Globalization of the Supplier Base Market Volatility Leads to Fluctuations in Demand Global Production- and Supply Network within Daimler Increasing Costs for Transportation Services/Capacity Constraints Emerging Markets Management of Complexity and Integration of Global Transportation Volumes into a Common Transportation Network at Optimal Costs 21

  22. Thank you for your attention !

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