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BMW supply chain strategy.

Navigation Europe 2007.

Uwe Koch

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BMW supply chain strategy.Navigation Europe 2007.

What you need to know

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BMW supply chain strategy.Navigation Europe 2007.

The Why

and the Howand the How

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BMW supply chain strategy.Why The motivation.

The World is changing!

Complexity

Level of Integration

past feature set

current feature set

next feature set

Yesterday

Tomorrow

Value Chain

HW SW

HW SW

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BMW supply chain strategy.Why The typical triangle.

Quality

Cost

Time

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.

Increasing takerates of factory installed Navigation Systems

Time

Figures

factory installed

Navigation Systems

portable / aftersalesNavigation Systems

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BMW supply chain strategy.Why - How can all of this be achieved?

Reduce hardware

Reduce time to market

Increase feature set

Increase market /modell adaptions

SWas a

Product

Quality

Cost

Time

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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 moresimple 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.

TechnicalRealisation

LogisticImplemetation

LegalFramework

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BMW supply chain strategy.How - Logistic situation.

Hardware x xxx xx1 Price 1 Supplier S1

Framework SW x xxx xx2 Price 2 Supplier S1

Navigation x xxx xx3 Price 3.1 Supplier SW1x xxx xx4 Price 3.2 Supplier SW2

Digital Map x xxx xx5 Price 4.1 Supplier M1x xxx xx6 Price 4.2 Supplier M2x xxx xx7 Price 4.3 Supplier M3x xxx xx8 Price 4.4 Supplier M4

Function y x xxx xx9 Price 5 Supplier SW3

Headunitx xxx xx0

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BMW supply chain strategy.How Logistical flow of goods.

BMW

Supplier S1Headunit

Supplier S1Hardware

Supplier S1Framework

Supplier SW1Navigation

Supplier M1Digital Map

Supplier SW3Function y

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BMW AG

Supplier S1 Supplier SW1

Supplier SW2

Supplier M1Supplier M4

Supplier SW3

Supplier M3 Supplier M2

Price 1 Hardware

Price 2 Framework SW

Price 3.1 Navigation

Price 3.2 Navigation

Price 4.1 Digital Map

Price 4.2 Digital MapPrice 4.3 Digital Map

Price 4.4 Digital Map

Price 5 Function y

BMW supply chain strategy.How Logistical Cash flow.

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BMW supply chain strategy.How Summary logistic implementation.

The most challenging issue of all three topics was the logisticimplementation!

Flow of goods have to be separated fromCash flows (taking into account the particular tariff- and taxregulations of the target market).

Flow of goods have to be transparent forall 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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Instrument Panel

HUD GPS

Distance

Voice Recognition

Gyro

Telephone

Rearseat

BMW supply chain strategy.How - Technical interface diagram.

Tester

VICS

ADAS

TCU

Tuner

MMI

Map

SW-Module

Navigation System Software

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MMI

SW-MOST

SW-ModuleNavigation

Framework,Rest

OS

Hardware

SW-Function Y

BMW supply chain strategy.How - Technical block schema.

Plat-form

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BMW supply chain strategy.Questions.

Thank you!