Présentation Renault

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- At the start of 2014 a project to increase synergies between Renault and Nissan was announced. It led to joint management being set up in four spheres: purchasing, engineering, manufacturing and logistics, and human resources. For 2016, the Alliance set itself an objective of at least 4.3 billion of synergies. These synergies will contribute to the success of the Renault plan.

- SWOT

OPPORTUNITIES

THREATS

- The asian crisis (opportunity to create an aliance).

- A sustainable development in developing countries (for example: MERCOSUR).

- The eco-friendly car development

- Government grants and loans + Law « scrapping premium »

- Binding legislation both for environment and security.

- Overcapacity in the industry .

- Saturation of the European market.

- Negotiation with suppliers.

- High raw material and energy prices

- Weak growth in the global market

STRENGHTS

WEAKNESSES

- Cost control

- An important complementarity between Renault and Nissan

- Its capacity for innovation : in particular with electric car

- Development times

- Its product marketing is too centralized around entry-level vehicle

- The brand is viewed as mainstream

- Competitors

- One the most important Renault's competitor is PSA. Currently, PSA changes mostly its direction towards chinese market and generates more turnover than Renault. Nevertheless, Renault has more own funds which compensate and it shows that Renault is a serious rival. In despite of the recent scandal, Volkswagen is still dominating the automobile market, in particular in China: shows an increased sales with its subsidiary « Porsche ».

- Renault has created its new car “Talisman” with the aim of integrating the high-range market. But in this category the competition is tough, for example: Audi, Mercedes, BMW, etc...

- In China, Renault adjusted its product “Kadjar” exclusively for the chinese market. Indeed, with this vehicle the group retained its positioning and responded to the local market. However, its competitors are present , for example the Kia Sportage R launched in 2010, the Peugeot 3008 in 2012 and also the Hyundai Tucson which sold 145000 vehicles in 2014.

3°)PARTS & ACCESSORIES LOGISTICS PROCUREMENT DEPARTMENT (DLPA)[pic 5]

The department is divided into two kind of missions, firstly, Operational missions:

- To provide the P&A procurement for French and European Warehouses.

- To manage the Aftersales suppliers logistic performance and their Service Rates

- To optimize stocks and minimize the backorders while ensuring fill rate

- To manage the worldwide stock policy including stock landing.

- To prepare marketing campaign and their forecast with the Regions, countries and program Director.

- Secondly, Corporate missions: To define and implement the methods, process, KPI, and tools, mandatory for an improved P&A availability and stock management in Renault Warehouses worldwide

Since 2012, numerous actions have been implemented to ensure that the DLPA pursued Renault’s international development: Actions of DLPA in the Asia-Pacific region, the logistical excellence in China.

A transformation plan with 5 components :

- Industrial

- SPR (Renault Production System) /APW (Alliance Production Way) : Layout evolution of repacking and export warehouse zones

- Master plan implementation : Warehouse surface optimization, compaction

- Hygiene,Security,Environment Plan : Risks identification and prevention at workstation

- Quality

- Satisfy customers: Short loop for claim processing.

- Compliant production : QRQC (Quick Response Quality Control) method in the workshops

- Formalise and deploy processes : processes revised and coming from best pactices

- Customer Relationship

- Service rate = customer satisfaction baseline : Logistics depending on customer profil and part type. Objective service rate to network 94% in 2015, 95% in 2016.

- Engineering

- Synergies with Nissan : common warehouses, common logistic scheme (Russia, India)

- Scheme optimization on total delivery cost: Transport flow, packaging, means filing.

- Procurement

- Optimized stocks: Documentary quality, forecasts, referential (RIM project), slow movers localization.

- Transversal actions with patners (regions): Move forward Supplier service rate up to 80% end 2016.

DLPA is made up of Elementary Work Unit (UET), I work in the “UET I” (the letter means International). We deal with all international procurement, for example Brazil, South Korea, Argentina, Romania, etc...

In the UET I there are Production Technicians called also “TGP”, each of them have a portfolio of suppliers. They manage Parts & Accessories stocks and make forecasts thanks to software called “MPR” and “Opale”. They work with suppliers as well as Renault’s worldwide network such as garages and car dealership. When a garage or a car dealership needs parts, it orders to Renault’s warehouses, if the parts are sold out, the TGP should be able to supply warehouse. Their priority are the reduction “backorders” and “VOR”. This priority is important