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© Autoliv, Inc. All Rights Reserved. 2014 CAR Management Briefing Seminars Purchasing and Automaker/Supplier Relations August 7, 2014 Steve Fredin President Autoliv Americas
© Autoliv, Inc. All Rights Reserved. August 7, 2014 As an automotive safety system supplier, engineering for Zero Defects is mandatory Supply Chain Visibility Quality Culture Cascading these expectations further into the supply base is critical
© Autoliv, Inc. All Rights Reserved. August 7, 2014 Proactive Campaign Prevention Increase awareness of safety functions Eliminate non-conforming events Go-See-Prevent: Tier 1 → Tier 2 → Tier 3 Supply Risk Management Mapping Global and annual Detailed risk assessment Included into global sourcing process Supplier Recovery Plan Prepared when sizeable risk identified Pro-active recovery plans in case of catastrophic event Preventative actions to reduce future risk Supply Chain Visibility Instilling a Quality Culture & Managing Risk
© Autoliv, Inc. All Rights Reserved. August 7, 2014 Supply Chain Visibility Better Insight to OEM Plans All OEM’s plan to “win” in 2015…… >18M LVP! Five year outlook with transparency to Tier 3’s OEM technology roadmap
© Autoliv, Inc. All Rights Reserved. August 7, 2014 OEM / Supplier Relationship STEVE FREDIN President Autoliv Americas
© Autoliv, Inc. All Rights Reserved. August 7, 2014 OEM / Supplier Relationship Influencing Factors
© Autoliv, Inc. All Rights Reserved. August 7, 2014 OEM / Supplier Relationship Reality Check
© Autoliv, Inc. All Rights Reserved. August 7, 2014 OEM / Supplier Relationship Reluctance to Change How do we want to evolve?
© Autoliv, Inc. All Rights Reserved. August 7, 2014 OEM / Supplier Partnerships STEVE FREDIN President Autoliv Americas
© Autoliv, Inc. All Rights Reserved. August 7, 2014 OEM / Supplier Partnerships Open Minded … Introducing Innovations Restraints Leader ? Vision Supplier “Preferred” for what is supplied today, but there are perceptions that established suppliers cannot go beyond core competencies “Not considered” for tomorrow’s innovation
© Autoliv, Inc. All Rights Reserved. August 7, 2014 OEM / Supplier Partnerships Moving Forward Advanced Technologies Decreasing development cycles Implementation Share Innovation Risk/Reward Early Engagement with Supplier Total Cost Approach Globalization Share Innovation Risk/Reward Early Engagement with Supplier Total Cost Approach Globalization
Autoliv Every year, Autoliv’s products save Over 30,000 lives
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