BMW supply chain strategy. Navigation Europe 2007.

Uwe Koch

Uwe Koch 06.06.2007 Page 2

BMW supply chain strategy.

Navigation Europe 2007.

What you need to know

Uwe Koch 06.06.2007 Page 3

BMW supply chain strategy.

Navigation Europe 2007.

The Why and the How

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BMW supply chain strategy.

Why The motivation.
The World is changing!
Complexity
next feature set current feature set past feature set

Level of Integration

Yesterday

HW

SW

Value Chain Tomorrow

HW SW

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BMW supply chain strategy.

Why The typical triangle.

Cost

Time

Quality

Everybodys perpetual motion machine: Higher quality by reduced costs in shorter time frames!

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BMW supply chain strategy.

Why The market situation.
Figures

portable / aftersales Navigation Systems factory installed Navigation Systems Time

Increasing takerates of factory installed Navigation Systems

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BMW supply chain strategy.

Why - How can all of this be achieved?

Cost

SW as a Product Time Quality

Reduce hardware Reduce time to market Increase feature set Increase market / modell adaptions

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BMW supply chain strategy.

Why to start with Navigation application?

- High potential of the Navigation System - Commodity character - Most complex application

If this strategy works with Navigation, it will work with more simple applications as well

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BMW supply chain strategy.

Navigation Europe 2007.

The Why and the How

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BMW supply chain strategy.

How Another triangle.

Legal Framework

Technical Realisation

Logistic Implemetation

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BMW supply chain strategy.

How - Logistic situation.

Hardware

x xxx xx1

Price 1 Price 2 Price 3.1 Price 3.2 Price 4.1 Price 4.2 Price 4.3 Price 4.4 Price 5

Supplier S1 Supplier S1 Supplier SW1 Supplier SW2 Supplier Supplier Supplier Supplier M1 M2 M3 M4

Framework SW x xxx xx2 Navigation x xxx xx3 x xxx xx4 x xxx xx5 x xxx xx6 x xxx xx7 x xxx xx8 x xxx xx9

Digital Map Headunit x xxx xx0 Function y

Supplier SW3

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BMW supply chain strategy.

How Logistical flow of goods.

Supplier S1 Hardware

Supplier S1 Framework

Supplier SW1 Navigation Supplier S1 Headunit Supplier M1 Digital Map

BMW

Supplier SW3 Function y

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BMW supply chain strategy.

How Logistical Cash flow.
Supplier S1 Supplier SW1

Price 1 Hardware Price 2 Framework SW

Price 3.1 Navigation

Supplier SW3
Price 5 Function y Price 3.2 Navigation

Supplier SW2

BMW AG
Price 4.4 Digital Map Price 4.1 Digital Map

Supplier M4
Price 4.3 Digital Map Price 4.2 Digital Map

Supplier M1

Supplier M3

Supplier M2

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BMW supply chain strategy.

How Summary logistic implementation.
The most challenging issue of all three topics was the logistic implementation! Flow of goods have to be separated from Cash flows (taking into account the particular tariff- and tax regulations of the target market). Flow of goods have to be transparent for all partners. Cash flows take place exclusively on a bilateral level.

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BMW supply chain strategy.

How - Legal Framework.

Solved !

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BMW supply chain strategy.

How - Technical interface diagram.
HUD Instrument Panel MMI Distance Map GPS Gyro

Voice Recognition

SW-Module Navigation
System Software

Tuner Tester ADAS Rearseat TCU Telephone VICS

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BMW supply chain strategy.

How - Technical block schema.

MMI
SW-MOST

Framework, Rest

SWFunction Y

SW-Module Navigation

Platform

OS Hardware

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BMW supply chain strategy.

Questions.

Thank you!