FORKLIFTS. INTERCONTINENTAL FRANKFURT HOTEL Meeting room Beethoven Evelyne Lachal
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1 FORKLIFTS INTERCONTINENTAL FRANKFURT HOTEL Meeting room Beethoven Evelyne Lachal
2 Security and Confidentiality Members can discuss and collaborate on requirements and cost of Indirect goods and services as long as those indirect goods and services: Do not Directly and appreciably affect the cost of production Do not Represent 15% or more of the market for those goods or services being discussed. Members cannot discuss cost of Direct Goods/Raw Materials & CAPEX except in limited circumstances and approved by legal counsel
3 World International Lift Trucks Statistics Global WW increase orders by 23% in 2011 Nº1 Americas 24.1% (out of which South America raised by 123%) Europe 23.6% Asia eroded to 20% ( compared to previous year with 53% increase) Africa 13.2 % and Oceania 44.7% Market reflection the economic situation (see 2009) Market trend: BRIC countries drive the growth Asia boosted by China, India South America boosted by Brazil Europe boosted by Russian Federation In EU, Germany and Poland show a significant growth. Source: WITS Large panel of suppliers with key suppliers out of which 10 of the 25 biggest cover 85% of the turnover Source: World ranking list of material handling vehicles Source: WITS data : 1,199,315 Trucks orders Public - Elemica round table Frankfurt 3
4 Large scope in the machines range Tow truck Standard and ATEX certified (Pyroban) for explosion proof environment Pallet & Pedestrian truck Electric 3 or 4 wheels truck Electric stacker Reach truck Public - Elemica round table Frankfurt 4
5 Suppliers Ranking and Trade mark Suppliers turnover and employees (per year 2006/2010) Brazil Nº1 worldwide 2011 Turnover Source: Top 20 lift truck suppliers, 2012 Modern Material Handling Source: World ranking list of material handling vehicles DHF.com 5
6 Global trademarks on the market Jungheinrich 1 trademark Kion 6 trademarks Toyota Material handling 4 trademarks NACCO 2 trademarks Factories in Germany, Czech Rep., China 10 fac USA, Italy, NL, N. Ireland, Brazil, Mexico, Japan, China, Australia, Philippines, Vietnam Crown 1 trademark Factories in USA, China MANITOU 1 trademark F USA, France, Germany, Italy, UK, Czech Rep., Brazil, China, India KOMATSU 1 trademark Hanhui Heli Factories in Canada, USA, France, Sweden, Italy, Japan, China MITSUBISHI 3 trademarks Factories in USA, Finland, Japan, China NISSAN 2 trademarks Factories Nissan and TCM are merging as UniCarrier Canada, USA, France, Sweden, Italy, Japan, China Factories in USA, Japan, Thailand Factories in Factories in France, China 6
7 Approach & necessary miles stones 1 Current Position 2 Locations Interest 3 Future Approach 4 Tendering 5 Contract Settlement & KPI An identified spend and number of trucks in the fleet A clear definition (specs/ needs) using existing config. or defining the trucks requirements A defined strategy to put in place A respected planning (by the internal stakeholders & the suppliers) A respect by the supplier of a detailed template allowing to define key data facilitating nego. 6 Implementation & Cost Control A well defined contract to avoid unexpected bills at expiration
8 Different Forklift Strategies Local Strategy Halfway Strategy Global Strategy Public - Elemica round table Frankfurt 8
9 Elemica experience Good preparation Supplier s involvement prior to the tendering process by organizing pre-tender information meetings to disclose the scope of the project and enable manufacturers participation not distributors A buyer driving specifications and requirements rather than requesting spec currently available Suppliers to visit customer facilities to obtain the full picture of the external environmental conditions A controlled process Stakeholders added value Internal stakeholders with strong preset product view And/ or un-consistency in their needs And/ or mislead by direct suppliers contacts Controlled Planning An accurate monitoring of the defined planning will allow: Better project focus Stronger suppliers involvement and Proper Bid sheet A specific template Watch out: Supplier non respect of the detailed template Tendency to give one global price allowing you no true comparison and no clear view of the offer prices compounds Common misstep Chargers & batteries no unit prices & quantity Change of running hours other than requested Change of leasing period No stated residual value No price for buy-back No below hour prices but over hours are Monthly present truck usage Tendering a fleet per real/ expected hourly class running hours Avoid uniform usage for the fleet such as all trucks 150h/months A commodity know-how 200h/months 250h/months. Tender scope Global, Cross countries or local tender; a tailored approach fitting a strategy issued from the present situation Elemica expertise +80 projects WW Prices alignment leaders E-tools price optimization help you to reach the real market price RFQ for Prices alignment & Auctions to define the leaders using multiple scenarios - on prices compounds (unknown true winner) - on total market value with supplier weighting - on various procurement modes (purchase/lease) +20 Projects in EU responsiveness Internal stakeholders consensus Avr. 18.5% savings EU 9
10 Financing modes: a recurrent? Out off your balance sheet In your balance sheet Hourly hiring Payment only for the usage (including truck but eventually the driver) Short term renting Cover peaks or unstable condition Terms can change Long term renting Flexible & pre determined terms susceptible to change Leasing 2 forms Pre-determined terms and cannot be broken without breaking the lease Purchase Preferred for long term usage or financially better off Operational Leasing Finance Leasing Differentiation on next slide Public - Elemica round table Frankfurt 10
11 A Lease form halfway to purchase Lease Forms Purchase Out off your balance sheet One criteria verified In your balance sheet Operational lease ALL TO NO 1 YES MIN Capital lease = Finance lease According to International Accounting Standard (IAS) 17 amendment: by IFRS Public - Elemica round table Frankfurt 11
12 What is actually requested? Machine Service/Maintenance Driver Truck Batteries * Chargers * Accessories Preventive Curative Labor rate Travel rate Spare part price Full service Level a: TBD Level b: +Tires ** Level c: + Batteries** & chargers Driver / truck Driver / hour * If needed or applicable ** Indicate the frequency of replacement (1 set per.) Public - Elemica round table Frankfurt 12
13 Questions and Discussions 1. Are your stakeholders open for change & how do you motivate them to capture value? 2. Are you meeting suppliers before/during Tender? And are they accepting tendering? 3. Is your relationship at agent or a central (international / national) key account level? 4. Do you think the complexity of this spend category is too high and is very difficult for you to have and maintain close grip in it? 5. What is your opinion about having a global central contracting approach versus a local? 6. What challenges are you confronting while managing this spend category and how do you convert them into success stories? Public - Elemica round table Frankfurt 13
14 Thank you and let s share your views to empower your vision Click to edit Master title style
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