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Volvo Group NAP Corporate Presentation

Volvo Group NAP Corporate Presentation. Supporting the Volvo Group. AB Volvo. Business Areas. Mack Trucks. Renault Trucks. Volvo Trucks. BA Asia Including Nissan Diesel. Buses. Construction Equipment. Volvo Penta. Volvo Aero. Financial Services. Business Units. Volvo 3P.

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Volvo Group NAP Corporate Presentation

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  1. Volvo Group NAP Corporate Presentation

  2. Supporting the Volvo Group AB Volvo Business Areas MackTrucks RenaultTrucks Volvo Trucks BA Asia Including Nissan Diesel Buses Construction Equipment Volvo Penta Volvo Aero FinancialServices Business Units Volvo 3P Volvo Powertrain Volvo Parts Volvo Logistics Volvo Group NAP, Volvo IT, VBS, Volvo Technology, Volvo Group Real Estate and others Volvo Group NAP, Volvo IT, VBS, Volvo Technology, Volvo Group Real Estate and others

  3. Our mission Volvo Group NAP´s mission is to improve profitability for all our customers by consolidating the Volvo Group´s purchasing power and being the most efficient purchasing function in our industry

  4. Our history • 2002 Volvo Group NAP is established by a merger of 3 national & local non automotive purchasingfunctions in Sweden, France and USA. • 2004 Volvo Group NAP is restructured into a global, commodity-driven organization located in 12 countries. • Volvo Group NAP is the first Volvo Group organization to obtain a global multi-site ISO certificate. • Volvo Group NAP expands into a company located in 18 countries and 40 sites.

  5. Facts and figures (2007) • Number of employees: 250 • Buyers located in: 21 countries, 44 sites • Cost reduction realized: 95,2 MEUR • Number of active suppliers: 22 700 • Total Volvo Group spend addressed by Volvo Group NAP: 2.7 BEUR(= 9% of Volvo Group turnover)

  6. Global presence - close to our customers 21 countries 44 sites 250 purchasing professionals Planned for 2008

  7. Total NAP spend of the Volvo Group Total: 4.6 BEUR (2007) IT & Communication (11%) Logistics (30%) Facility Management and Services (12%) Professional Services (24%) Marketing & Sales (4%) Production Equipment and Investment (5%) MRO & Packaging (10%) Not Addressable (4%) Volvo Group NAP: 2.7 BEUR (2007)

  8. Global Procurement Support Martin Svensson Executive Team Operations Legend: Commodities Global Support Organization President Volvo Group NAP Karin Falk Finance Sophie Joncour Executive Management Support Human Resources Ann-Charlotte Palm Commodity Professional Services Jan Söderlund Region Europe Magnus Koch Region Americas Sylvain Gagnon Region Asia/Pacific Charlie Bai Commodity Marketing & Sales Kina Aronsson Country Country Country IS / IT Managers Managers Managers Korea Sweden USA Finland Commodity MRO & Packaging Serge Cros Strategic Sourcing China Brazil France Italy Australia Canada Belgium A/CH Sourcing Commodity Production Equipment & Investments Mikael Dohrmann Analysts India Mexico Turkey Germany Planned for 2008 Malaysia Norway Commodity Facilities Management & Services Anders Iwarson Japan Poland Planned for 1 January 2009 Spain UK Russia

  9. Governance structure and roles • Volvo Group NAP Board role: • Overall objectives and results • Manage allocation model • Determines policy • Confirms Commodity Board members President Volvo Group NAP Finance Human Resources Commodity Professional Services Region Europe Region Americas Region Asia/Pacific Global Procurement Support Commodity Marketing & Sales • Commodity Boards role: • Validate strategies • Bring specific commodity expertise • Sounding board • Ensure availability of BA/BU staff for projects • Track progress • Define and support measures to increase compliance • Validate final results • Share responsibility for results Commodity MRO & Packaging Commodity Production Equipment & Investments Commodity Facilities Management & Services

  10. Volvo Group NAP Board members Stefan Johnsson - AB Volvo, Senior Vice President and Chairman of the Board Bo Gustavsson - Volvo Logistics, CFO Christian Johansson - Volvo Truck Corporation, CFO Gene O´Keefe - VTNA, Senior Vice President Manufacturing Patrick Besson - VTNA / Mack, Vice President Purchasing Peter Jansson - Volvo Bus Corporation, Senior Vice President Global Product Development & Purchasing Douglas D Rohn - Volvo Construction Equipment, Vice President Purchasing & Supply Management Tomas Fernbring - Volvo Penta, CFO Per Begger - Volvo Aero, Purchasing Director Bertil Thorén - AB Volvo Alliance Office, President Katarina Lindström - Volvo Powertrain, Senior Vice President Manufacturing Veronique Adnet - Renault Trucks, General Secretary Karin Falk - Volvo Group NAP, President

  11. Competitive Total Cost of Ownership Improved cash flow due to extended payment terms Quality assured purchasing agreements Efficient purchasing by world class processes and tools Eliminating fraud and costly purchasing habits Sharing best practices within the Volvo Group Driving purchasing excellence

  12. EBD for eProcurement VeSA for eSourcing Pure for Business Intelligence How2Buy for Customer Information WebPP for reporting of cost savings World class IT tools

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