Global Supply Chain: a Perspective
Total Page:16
File Type:pdf, Size:1020Kb
Global Supply Chain: A Perspective Goran Kopic November 1, 2018 About Linamar Ownership: Public (Listed on the TSX: LNR) Founded: August 17, 1966 Headquarters: Guelph, Ontario, Canada Manufacturing: 60 Facilities Worldwide Employees: 28,600+ Management Depth: Average length of service for management-15 years Diversity: 54 first languages spoken at Linamar (Canada and US) 2017 Sales: $6.5 Billion (CAD) Profile: Linamar Corporation is a diversified global manufacturing company of highly engineered products powering vehicles, motion, work and lives. Linamar’s Skyjack division is a leading global producer of mobile products to the access industry. Linamar’s MacDon division is known for harvesting performance in the agriculture industry with industry-leading equipment such as the FlexDraper®. © Linamar Corporation 2 Core Capabilities MACHINING & ASSEMBLY FORGING LIGHT METAL CASTING METAL FORMING § CNC Expertise § Hatebur High Speed Hot § Gravity & Low Pressure § Laser cutting § Complex Assemblies Horizontal Forging Aluminum Die Casting § Metal Forming § Advanced Automation § Conventional Vertical Forging § High Pressure Aluminum & § Stamping & Robotics § Cold Forming Magnesium Die Casting § Painting § Hydroforming § Ring Rolling § Robotic Welding § Heat Treatment § Radial Forging § Assembly © Linamar Corporation 3 Key Products Transportation Industrial Engine Transmission Body & Structural Driveline © Linamar Corporation 4 Markets COMMERCIAL AUTOMOTIVE VEHICLE OFF-HIGHWAY ENERGY AGRICULTURAL AERIAL WORKS INDUSTRIAL MARINE & PLATFORM RECREATION © Linamar Corporation 5 Global Presence 1 7 4 24 4 6 1 4 1 5 3 CHINA INDIA USA UNITED KINGDOM SPAIN BULGARIA MEXICO CANADA FRANCE GERMANY HUNGARY 49 Facilities with IATF 16949 13 Facilities with ISO 9001 51 Facilities with ISO 14001 41 Facilities with OHSAS 18001 Number of manufacturing facilities Manufacturing (60) Sales Representation (15) Development Centres (8) Support Facilities (4) August 2018 © Linamar Corporation 6 Operating Structure GLOBAL Segments & Operating Groups SUPPORT Transportation Industrial Corporate Headquarters Linamar Machining & Linamar Linamar Montupet Light Linamar Skyjack Linamar Agriculture Assembly Seissenschmidt Metal Casting Forging Frank Hasenfratz Technology and Training Linamar Machining & Assembly Centre Americas Global Global Global Global Operating Operating Operating Operating Group Group Group Group McLaren Engineering Linamar Machining & Assembly Europe Regional Design and Sales Offices Linamar Machining & Assembly Asia GF Linamar Global Pacific Alliance Innovation Hub © Linamar Corporation 7 DC Electric Scissor Lifts Mast Lifts RT Scissor Lifts Telescopic Booms Articulating Booms Telehandlers © Linamar Corporation 9 History Timeline Skyjack Corporate Profile – 10/18 Product Portfolio § Attached to a self-propelled windrower or combine § Used to cut and process crops through combine feeder house or left in field for further curing Draper Headers § Predominantly used for harvesting soybeans, wheat, canola, rice, oats, dry edible beans and flax seed § Self-propelled harvesting machinery used with a header to cut and lay crop in the field Self-Propelled Windrowers § Popular in hay and forage, cereal grains, canola, and regions where growing seasons are short and crops are harvested while damp § Primarily maintenance and replacement parts for the Company’s large installed base Aftermarket Parts § Bolstered by acquisition of Westward Parts in 2012 § Attached to front of a combine § Used to pick-up crop that has previously been “windrowed” Pick-Ups § MacDon pick-ups renowned for functionality and durability § PW8 fits multi brands with face plate (increases resale value) § Includes: Auger Headers and Rotary Disc Headers for Self-Propelled Windrowers, and two Hay Products types of Pull-Type Mower Conditioners History MACDON CORPORATE PROFILE Acquired in 1992, Linamar Hungary’s Oros division has been involved with Ag implement design, manufacturing and sales since the 1960s © Linamar Corporation 14 OROS Product Lines © Linamar Corporation 15 Linamar-Global Customer Base Light & Commercial Vehicle Off-Highway, Industrial & Energy Aerial Work Platform Agricultural & Recreational © Linamar Corporation 16 Quick Re-cap: § What we sell: § What we buy: § castings, forgings, axles, engines, tires, hydraulic systems, joysticks, glass, cowlings, electrical boxes, telematics solutions, A/C units, batteries, motors, frames, counterweights, freight, welding wire, lubricants, data management…….. © Linamar Corporation 17 Global Supply Chain § Where do we buy? © Linamar Corporation 18 Global Supply Chain: a view from the outside § Continuously evolving § The only constant is change § Formula 1 Pit Stops § Effects on supply chain: § Technology § Innovation § Emerging markets § Geopolitical situation § Globalization?? © Linamar Corporation 19 Globalization/De-globalization ? § Local Procurement § Offshore procurement § Low cost sourcing (Technology vs. Labour cost), myth or truth? § Tax incentives § Fx rates, § Brexit § Tariffs/Countermeasures § NAFTA Renegotiation (USMCA) © Linamar Corporation 20 Global Supply Chain Strategies: Current Challenges Challenge Outcome Mitigation Global Capacity Allocations, Cost Implications Transparency, Communication, Secondary Sourcing, Compatible Options/ Substitutions Trade Regulations Tariffs Remissions, Drawbacks, Rerouting, 3PL US: Sec 232,301…. Warehousing, Global Supplier Locations/ CA: Notice 18-08, Safeguard Options, Consortium approach to buying Measures Opportunistic Pricing Cost increases, inability to absorb or Awareness, Data Accuracy and Integrity, pass through, loss of market share, External Analytics and 2nd Tier negotiations capital heavy project delays, (Fx, Should costing) © Linamar Corporation 21 Global Supply Chain Strategies § Organizations’ Role: § Awareness § Flexibility § Agility § Optimization § Accountability & Social Responsibility © Linamar Corporation 22 Lessons Learned (…and still learning….) Global Supply Chain Strategies: Sourcing methods § DO § DON’T § Be Informed § Assume anything § Know what you are buying § Don’t “push” one parameter of supply § Dual source when possible; make chain (cost) suppliers aware § You do need profitable suppliers § Look at different geographic regions § Don’t ignore offers of help/assistance § Consider political and environmental risks § Supplier expertise is crucial § Develop “what effects my commodity” tool § Don’t settle for “status quo” § Provide candor and transparency within § Things WILL change legal and ethical boundaries-it will go a long way § Don’t try to reach perfection § You will be at high risk of developing § Keep learning and motivate innovation insanity § Note: innovation is NOT creativity © Linamar Corporation 24 What is Perfection? © Linamar Corporation 25 Vision 2100 – Building an Action Plan for the Future Manufacturing and Materials Development to Support all Markets Transportation Infrastructure Food Global Addressable Markets: Global Addressable Markets: Global Addressable Market: Automotive Scissors, Booms, Telehandlers Agriculture Harvesting, Seeding, & Commercial Vehicle Hydraulics Tillage Equipment Off Highway Vehicles Marine/Personal Trans/Rail Advanced Manufacturing Artificial Intelligence/Machine Learning Material Development Power Age Water Global Addressable Markets: Global Addressable Market: Global Addressable Markets: Electrical products, systems & services Medical Devices Irrigation Market Energy Markets – Oil/Gas, Solar, Wind Healthcare & Mobility Water infrastructure Energy Storage & Generation Home Care Technology Access, Storage, Cleaning Wearable Technology © Linamar Corporation 26 @linamarcorp @linamarcorp Thank You Linamar Corporation www.linamar.com Linamar Corporation .