Automotive
Megatrends
Looking at the key influencers on the
global automotive industry in 2014
Areas to Cover
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The Unipart Group
The Five Megatrends
What makes them important today?
Our projects and their impact
Looking out – future trends
The Unipart Group
Manufacturing
Logistics
Consulting
10,000
People
4 principal
divisions
£1b
Turnover
Majority
owned by
employees
HeadOperating in
100 countries quartered in
Oxford
worldwide
Performance through
Engagement
Our standard way of working across the Unipart
Group
The Unipart Way is our
proven method
of generating our
high levels of
employee engagement
that deliver
distinct benefits
to our clients
Our consultancy business has now helped other
organisations around the world adopt this same
approach
OUR ROLE IN GLOBAL
AUTOMOTIVE INDUSTRY
Our relationship with Jaguar has been in place
for 25 years & has seen significant development
Jaguar
France
D2D
1995
1994
Jaguar Unipart Invests in
North ULS/SAP for Global
America
Operations
Jaguar
Germany
1997
1996
Jaguar
Italy & Spain
D2D
1999
1998
Jaguar
Holland
& Belgium
D2D
Jaguar
Sweden
D2D
Unipart Invests in
Reverse Logistics
Centre in NJ
2001
2000
2003
2002
Jaguar
Japan &
Australia
Unipart Invests in
new Atlanta facility
and commences
JLR SA Operation.
Unipart also invests in
Unicode to support
non-Latin languages
e.g. Chinese
Unipart Invests in
new Beijing VOR
facility for JLR
2005
2004
2007
2006
2009>
2008
India
2011
2010
Unipart invests
Contract in Madrid VOR
Renewal,
New operations
Unipart
facility
Extended
in China and New operations
invests in
in Southern
to 2013
Russia live
new facilities
China
and
for JLR
in Toronto
South
Korea
and Australia
Jaguar Cars: a complex global supply chain
Suppliers
1,200
850
40,000 Schedules
Packers
Global
Distribution Centres
14
1,000,000+ Lines
120,000 Parts
400 Collections
£44m Inventory
98% Global Availability
Dealers
+ Importers
Global ERP Platform
Sales and Distribution Customer ordering, shipping,
billing and returns
Warehouse Management Management of highly complex
warehouse structures in real time
Materials Management - Inventory
Customer
management, purchasing, planning
and physical inventory
Financial
Accounting -
Stores
Accounts payable &
receivable
Warehouse
Supplier
Raw Materials
THE MEGATRENDS
The Five Megatrends
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Low Carbon Future
New Dominant Global Markets
New Market Entrants
Competing Supply Chains
Workforce Skills Development
Megatrend 1
LOW CARBON FUTURE
Future roadmap changing the industry
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Vehicle design
Infrastructure change
Planning impacts
Global variability
• Economic need
• Political pressure
• Market changes
Megatrend 2
NEW DOMINANT GLOBAL
MARKETS
Dominant Global Markets
• Continued growth in Asia
Volume Talks – China 2014
Dominant Global Markets
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Continued growth in Asia
Volatility of Europe and North America
Russia
Investment in Africa
Rise of South America
Megatrend 3
NEW MARKET ENTRANTS
Megatrend 4
COMPETING SUPPLY CHAINS
Supply Chains Compete on key factors
• Quality / Cost
• Political
• Risk
Global Factors on Supply Chains
• Environmental.
• Considered to be that factors that have among the highest probability of
occurrence and that can be the least effectively mitigated since they
tend to be uncontrollable.
• Geopolitical.
• Several geopolitical factors tend to have a high probability, namely
conflicts and trade restrictions, but supply chain actors have a level of
influence on the outcome.
• Economic.
• The most significant economic factors relate to demand shocks, often
associated with political or economic sudden changes.
• Technological.
• ICT disruptions. As supply chains increasingly rely on information
technologies any information system failure has important ramifications.
Supply Chain Risk
• Supply Risks
• Supply chain is unable to meet the demand in terms of quantity
and quality of parts and finished goods.
• Demand Risks
• Impacts elements of the outbound supply chain where the extent or
fluctuation of the demand are unexpected
• Operational Risks
• Elements within a supply chain, impairing its ability to supply
services, parts or finished goods within the standard
requirements of time, cost and quality
“Delivering Value Through People”
“Human Relationships not
technological or
organisational linkages
are what make supply
chains work”
John Gattorna, 2005
Megatrend 5
WORKFORCE SKILLS
DEVELOPMENT
Unipart Logistics has introduced “Gate to Great”
What Really Separates WorldClass Performers from
Everybody Else
‘Deliberate Practice’ isn’t the kind
of hard work that your parents
told you about. It’s difficult. It
hurts. But more of it equals better
performance. Tons of it equals
great performance!
Partnership values based on
trust and mutual goals
“Based on nearly every measure
the relationship between Jaguar
and Unipart Logistics sets the
standard for world class
companies to aspire to for their
commercial partnerships”