ANALYSIS OF THE SUPPLIERS
FOR MERCEDES BENZ COMPANY

 

 

 

Analysis of organization and its suppliers and
particularly the supplier of urgent transportation services in
car-manufacturing industry

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COURCE: SUPPLIER RELATIONSHIP MANAGEMENT

 

 

 

 

SUPERVISOR NAME: JOLANTA
KUBICKA

 

PREPARED BY: ISA ISKANDAROV

FARID BALOGHLANOV

TABLE OF CONTENTS

Introduction……………………………………………………………………………………..3

Chapter 1

1. Suppliers of Mercedes Benz Company………..……………………………………………..4

1.1       Alpine
Electronics……………………………………………………………………….4

1.2       Dräxlmaier Group…………………………………………………………………..……5

1.3       Brose
Fahrzeugteile……………………………………………………………………..5

1.4       Valeo
company …………………………………………………………………………5

Chapter 2: Strategy in Supplier Relationship
Management……………………………………..6

2.1       Supplier
Segmentation…………………………………………………………………..6

2.2       Supplier
Identification ……………………………..…………………………………….7

2.3       Criteria
of choice of suppliers…………………………………………………………….8

Conclusion……………………………………………………………………………………….8

References…………………………………………………………………………………….….9

 

 

 

Introduction

In this project, we will explain strategy in supplier relationship
management, supplier segmentation, supplier identification and criteria of
choice of suppliers of Mercedes Benz Company. In addition, we will give
examples of Company’s main suppliers and analyze some of them according to the
supplier segmentation 

Information about Mercedes
Benz Company

Merced?s Benz C?mpany is one of the bigg?st car manuf?cturing
c?mpanies in the w?rld. Mercedes-Benz did not gr?w over night. It took m?re th?n
4 decad?s before the autom?bile was p?tented, marketed, distribut?d and s?ld.
Karl Benz patented a ped?l free mot?r w?gon in G?rmany in 1886. First aut?mobile
was introduced t? th? m?rket in 1901. From 1926, Mercedes Benz autom?biles
were ?vailable for public. Since then, C?mpany has bec?me a br?nd kn?wn w?rldwide
for qu?lity perf?rmance, d?sign and techn?logically innov?tive luxury v?hicles.
M?rcedes Benz began operati?n thr?ugh its p?rent c?mpany, D?imler Group
Corporation of Stuttgart Germany. In 1930th, Comp?ny produced the 770 m?del,
which was p?pular during German’s Nazi period. After g?ining p?pularity in Eur?pe
C?mpany lead?rs d?cided to expand market, th?n in 1965, M?rcedes Benz USA
(MBUSA) w?s created. Now?days Mercedes Benz produce th?ir ?utomobiles in thirty
c?untries. Produ?ts of C?mpany can be f?und ?ll over the world.   M?rcedes B?nz offers a full r?nge of passenger,
light ?ommercial and h?avy c?mmercial equipm?nt: c?rs, vans, trucks,
buses.    The m?in products ?re luxury c?rs:
S-Class, Mercedes-Maybach and M?rcedes-AMG.

 

Chapter 1. Suppliers of
Mercedes Benz Company

Mercedes Benz Company has more than 100 suppliers. We
list some of them:

A H R Metals Inc., Alpine Electronics, A1 Bar Code
Systems, AGC Automotive Americas, Ai3/DJD Investments Sequencing Center, Automotive
Lighting Company, Alabama Bolt & Supply, Alabama Graphics & Engineering
Supply, All Pro Inc., Allright Tool Company Inc, Altex Packaging Inc, Aluminum
Technology Schmid North America, AmPro Molding LLC, Andress Engineering
Associates Inc, Applied Industrial Technologies, ARD Logistics-Alabama LLC,
Atchley Steel Company Inc,  Brose
Fahrzeugteile, Bagby Elevator Company Inc, Bar Bender Steel Inc,
Barloworld Handling LP, Bates Enterprises, Dräxlmaier
Group, Benteler Automotive Corporation, BHS-HARREX Inc, Birmingham Control
Systems, Davis Machine Works, Davison Oil Company Inc, Decatur Plastics
Products Inc, DSW Converting Knives Inc, Dudley C Jackson Inc, Eberspaecher
North America, Eissman Automotive North America Inc, Fravert – Business Image
Graphics, G & B Global LLC, Federal-Mogul Corporation, Gestamp Alabama, Giant Resource Recovery-Attalla Inc,
Global Industrial Components Inc, Great Lakes Metal Stamping Inc, Grede
Escambia, MGM Machining Inc, Mid-South Industries Inc (HQ), MISA Metal Blanking
Inc, Mitchell Plastics, Motion Industries Inc, MSCO Inc Colbert, Neocon USA Inc,
New Southern Resistance Welding, Oerlikon Balzers Coating USA Inc, OMI (Opelika
MetalFab Inc), Packaging Materials Supply, Hoerbiger Automotive Comfort Systems
Inc.

1.1
Alpine Electronics

?lpine ?lectronics is the ?onsumer electroni?s subsidi?ry
?f th? J?panese ?lectronics c?mponent manufactur?r Alps El?ctric, sp?cializing
in car ?udio and navig?ti?n syst?ms. Al?ine’s ?ngineering headqu?rters are in
Iwaki, Fukushima Prefecture, Japan. Alpine also has manufacturing facilities in
Brazil, Hungary, Mexico, China, and Thailand.

 In 2006, 76% of
Alpine’s rev?nues c?me from OEM sal?s. BMW and Honda have offered unbr?nded ?udio
syst?ms m?nufactured by ?lpine, and c?mpanies su?h as Dodge and Jaguar Cars
have offered co-branded Alpine ?udio syst?ms in th?ir vehicles. Established in
1967 as Alps-Motorola — a j?int v?nture between Alps El?ctric and U.S.-b?sed
Motorola — it bec?me Alpine Electroni?s, Inc. in 1978 when Alps b?ught out
Motorola’s share ?f the company. Alpine offers a wide r?nge of items, including
in-car multimedi?, ?mplifiers, speakers, subwoofers and signal proc?ssing equipm?nt.
In 2008, Alpine introduc?d a full line of marine sound system products.

1.2
Dräxlmaier Group

Dräxlmaier Group is a G?rman ?utomotive c?mponent
supplier active in v?hicle electric syst?ms, electrical and electronic p?rts,
int?riors, st?rage systems, pl?stics, tool m?king and l?gistics. F?unded in
1958, the f?mily run enterprise is nowadays ?ne of the top100 ?utomotive
suppliers, running 58 sit?s in 22 c?untries on f?ur c?ntinents and is the m?rket
leader in the premium segment for b?th wiring systems and interi?r syst?m. The
H?adquarters of the Dräxlm?ier Gr?up is based in Vilsbiburg, Lower Bavaria,
Germany. The Dräxlmaier Group has such r?nowned cust?mers as Audi, BMW,
Bugatti, Cadillac, Jaguar, Land Rover, Lamborghini, Maserati, Mercedes-Benz,
MINI, Porsche, Tesla Motors, and Volkswagen.

1.3
Brose Fahrzeugteile

Brose Fahrzeugteile is an autom?tive suppli?r. The f?mily-?wned
c?mpany has its headquarters in Cobourg, Germany. In 2016, the Brose Group dev?loped and pr?duced m?chatronic
compon?nts and syst?ms for vehicle do?rs, seats and body at 60 locations in 23
countries w?rldwide. Brose’s cust?mers includ? mor? than 80 car manufactur?rs
and oth?r aut?motive suppliers. More than 25,000 employ?es worldwide
working for the f?mily-?wned c?mpany. The Brose Group generated sales of € 6.1
billi?n in fisc?l 2016. The c?mpany is also the primary spons?r of
the Brose Bamberg Basketball.

1.4
Valeo company

Valeo is an
automotive suppli?r and p?rtner to autom?kers w?rldwide. As a technology
company, they design inn?vative s?lutions for sm?rt m?bility, with a particular
f?cus on intuitiv? driving and r?ducing CO? emissi?ns. The Group also provid?s
and distribut?s spare p?rts f?r automak?rs and ind?pendent afterm?rket ?perators.
Vale? Company
produce r?diators for Mercedes Benz automobiles. As
a global autom?tive suppli?r, Valeo operates in 32 countri?s to d?sign inn?vative
technologies and syst?ms that will m?ke the c?r of t?morrow more intuitive,
autonom?us, c?nnected and envir?nmentally fri?ndly.

 

Chapter
2. Strategy in Supplier Relationship Management

Strategy of Mercedes Benz Company in Supplier
Relationship Management is creating closer, more collaborative relationship
with key suppliers in order to uncover and realize new value and reduce risk of
failure. Strategy is the selective partnership.

“In the best year of our company’s history to date, we
also initiated the biggest change. We are in the process of reinventing our
entire company.” (Dieter Zetsche Chairman of the Board of Management of Daimler
AG and Head of Mercedes-Benz Cars).

The main goal of Mercedes Benz Company is to be the
best, the slogan of company “The best or nothing”. They try to be successful in
field of high technology, safety, comfort and ecology safety. For achieving
these goals, they need key suppliers, which will provide sustainability.

Company honor their best suppliers every year for
their outstanding performances in the past business year with the Daimler
Supplier Award. All key suppliers and strategic partners are invited to this
ceremony. For top performance in the categories of Quality, Partnership and
Innovation. In addition, a Special Award is handed over exceptionally
innovative performance.

2.1
Supplier Segmentation

The Mercedes Benz Supplier Network philosophy has been
providing the basis for the collaboration between Mercedes Benz Company and the
suppliers.

Performance and partnership are the basis of
successful collaboration. Performance measured based on the criteria of
quality, technology, costs and supply. Partnership based on trust and open
communication.

Mercedes Benz Company categorizes their supply base in
four segments: Strategic Partners, Key Suppliers, Suppliers and Potential
Suppliers.

 

 

 

 

Classification of suppliers based on three criterias:
Innovation, Performance and Purchasing Volume. 

The higher a supplier ranks on the pyramid, the more
opportunities and trust the supplier is met with. The goal of all partners of
Mercedes Benz Company should be to move to the top of pyramid: from suppliers
to key suppliers, from key suppliers to strategic partners. Therefore as higher
the segment as higher mutual expectations and commitments.

In this part we also will analyze our four chosen
suppliers according supplier segmentation methods.

Our four suppliers are not only Mercedes Benz Company’s
strategic suppliers, but also for the other car manufactures. Therefore, we can
divide all of them into strategic partners group, because of their properties: Strong
brand, Exclusivity, High market control and High profitability.

According to nine supplier interaction models, we
think that, as our supplier has the high level of performance in the market and
they are strategic partners for Mercedes Benz Company they should be on
Integrate position.

Based on Customer- Supplier matrix we can say that our
suppliers should defined as Leverage. They have all requirements for this
group: Low risk, high spend services, Customer approach: ” Play the market”. Customer-Supplier
relationship is Tactical, Cost leadership and supplier approach: increase the
footprint.

2.2
Supplier Identification

Today the average company spends about half of their
revenue to purchase goods and services. This makes company’s success dependent
on their interactions with suppliers. The role of procurement managers has
become very important. It is important not only develop existing suppliers but
also find new suppliers.

Several factors make new suppliers important. For
example, a new supplier has more modernized production system and their products
cheaper than exist supplier’s products. Second, exist suppliers may go out of
business. The main point is that new suppliers can be more beneficial than
exist supplier.

To avoid any problems according to the supplier
non-performance, buyers take proactive steps to verify s supplier’s
qualifications. For checking supplier qualification buyers ask them about some
verifications: reference checks, financial status checks, surge capacity
availability, indication of supplier quality, ability to meet specifications.
Suppliers who have passed the qualification requirements and are eligible for
contract award are commonly referred to as “pre-qualified” suppliers.

2.3
Criteria of choice of suppliers

Mercedes Benz Company choose their suppliers not only
based on stability and quality of production. Suppliers’ sustainability
standards should define their requirements for working conditions, human
rights, environmental protection and safety, and business ethics and
compliance. They are obligatory components of the contract conditions. This
components form the basis of all their business relations with manufacturing
suppliers and service providers worldwide. By signing the contract supplier,
commit to observing company’s sustainability standards. Company also support their
suppliers to achieve these requirements, by providing information and training
measures. The Daimler Supplier Portal serves as the central information
platform.

 

Conclusion

As the inventor of the automobile, Company believe it
is their mission and duty to shape future mobility in a safe and sustainable
manner, with outstanding products and services and trend-setting technologies.
Mercedes Benz Company’s goals are to be the leader in technology and
innovation, to inspire customer and to continue to grow profitably. Company
plan to achieve their goals by focusing on four strategic areas: Technology
leadership and innovation, Delighted customers, Best teams, Profitable growth.
For achieving these goals Mercedes Benz Company need beneficially and strong
supplier relationship. Company built these relationships based on opportunities
and trust.

 

References

1)     
https://www.mercedes-benz.com/en/
official website of Mercedes company

2)     
http://www.alpine.com/e/corporate/museum/78.html
official website of Alpine company

3)     
https://www.draexlmaier.com/
official website of Dräxlmaier Group

4)     
https://www.brose.com/de-en/
official website Brose Fahrzeugteile company

5)     
https://www.valeo.com/en/valeo-around-the-world/
official website of Valeo company

6)     
Appelfeller,
W. & Buchholz, W. (2005). Supplier Relationship Management. Strategie,
Organisation and IT des modernenBeschaffungs managements, 12(2); 156-170

7)     
Johnston,
D. A., McCutcheon, D. M., Stuart, F. I., &Kerwood, H. (2004). Effects of
supplier trust on performance of cooperative supplier relationships. Journal
of Operations Management, 22, 23-38.

8)     
Lambert,
D.M., Emmelhainz, M.A., and Gardner, J.T. (1996), .Developing and Implementing
Supply Chain Partnerships., The International Journal of Logistics Management,
7(2), 1-17.

9)     
Mettler,
T., &Rohner, P. (2009). Supplier relationship management: a case study in
the context of health care. Journal of theoretical and applied
electronic commerce research, 4(3), 58-71.