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Department Manager North American Purchasing Planning
Honda North America, Inc.
November 20, 2014
Mark Willoughby
Introduction to Honda Operations in Ohio
Supply Base in Ohio
North American Purchasing Division Organization
New Model Launch Activities
Introduction to Honda Operations in Ohio
Global Supply Chain Challenges
Honda’s Strategy for Local Supply Chain
Our Supply Base in Ohio
Introduction to Honda Operations in Ohio
Supply Base in Ohio
North American Purchasing Division Organization
New Model Launch Activities
Introduction to Honda Operations in Ohio
Global Supply Chain Challenges
Honda’s Strategy for Local Supply Chain
Our Supply Base in Ohio
Total Global Sales CY 2013
27 Million Units Sold Worldwide
Powersports Automobile Power Equipment 16,790,000 4,279,000 6,008,000
China Honda Motor (China) Investment Co., Ltd.
Japan Honda Motor Co., Ltd.
Asia & Oceania Asian Honda Motor Co., Ltd.
South America Honda South America LTDA
North America American Honda Motor Co., Inc.
Europe/Africa/Middle East Honda Motor Europe Ltd.
November 20, 2014 Honda in North America
Honda has steadily expanded its capabilities to create products in N.A.,
from product concept and design to full development and production
Research & Development Manufacturing Sales
R&D Facilities
Manufacturing Facilities
November 20, 2014 Production & Research Facilities in North America
HRA Silicon Valley Lab (HSVL)
HRA Los Angeles Center
HRA Advanced Design Studio
(Downtown Los Angeles)
HRA Denver
HRA Cincinnati
HRA Ohio Center
HRA OSU (MIX)
HRA Detroit
HRA Marine Engine Research
Facility (Fla.)
HRA South Carolina
HRA Canada (Markham, Ontario)
HRA Burlington, N.C.
(Honda Aero, Inc.)
HRA North Carolina
HRA Halifax, Nova Scotia, Canada
Ohio Honda of America Mfg., Inc.
• Marysville Auto Plant • East Liberty Auto Plant • Anna Engine Plant
Honda Transmission Mfg. of America, Inc.
Indiana Honda Manufacturing of Indiana, LLC
Alabama Honda Manufacturing of Alabama, LLC
Georgia Honda Precision Parts of Georgia, LLC
North Carolina Honda Power Equipment Mfg., Inc. Honda Aircraft Company, LLC Honda Aero, Inc.
South Carolina Honda of South Carolina Mfg., Inc.
Canada Honda of Canada Mfg.
• Plant 1 • Plant 2 • Engine Plant
Mexico Honda de Mexico S.A. de C.V
• Guadalajara Motorcycle/Parts Plant • Guadalajara Auto Plant • Celaya Auto Plant
Manufacturing Facilities
R&D Facilities
0
250
500
750
1,000
1,250
1,500
1,750
Units in Thousands
Auto production facilities have combined to produce more than 26.8 million automobiles since 1982
Honda of
Indiana
241,589
Honda of
Alabama
333,556
Honda de
Mexico
63,172
Honda of
Canada
408,124
Honda of
America
734,772
2013 CY Total
1,781,213 units
November 20, 2014 North American Auto Production History
The North American region has become Honda’s volume leader globally,
and more than 40% of Honda’s North American production is in Ohio
Introduction to Honda Operations in Ohio
Supply Base in Ohio
North American Purchasing Division Organization
New Model Launch Activities
Introduction to Honda Operations in Ohio
Global Supply Chain Challenges
Honda’s Strategy for Local Supply Chain
Our Supply Base in Ohio
Last year, Honda spent more than One-Third of its total North American budget with our 158 Ohio Suppliers.
Over the past five years, Honda purchased more than $37 billion parts from our Ohio suppliers. In other words, the Buckeye State is plays an essential role in Honda’s supplier network.
November 20, 2014 North American Supply Partners
In 2013, Honda manufactured 1.78 Million vehicles in North America,
as parts purchases in the region exceeded $25.5 Billion – The Most Ever.
November 20, 2014
14,200 Employees
5 Manufacturing Facilities
Additional 7 Operational Locations
Over $9 Billion Invested
2014
November 20, 2014 U.S. Suppliers in Ohio
• Honda purchased* $9.7 billion in parts from 158 Ohio suppliers in calendar year 2013
*OEM parts purchased by all Honda plants in North America as of Dec. 31, 2013
-
2,500
5,000
7,500
10,000 M
illio
ns
More than $63.2 Billion in Ohio Supplier Spend Since 2005
Introduction to Honda Operations in Ohio
Supply Base in Ohio
North American Purchasing Division Organization
New Model Launch Activities
Introduction to Honda Operations in Ohio
Global Supply Chain Challenges
Honda’s Strategy for Local Supply Chain
Our Supply Base in Ohio
November 20, 2014
Anna
Marysville
Akron
Canton
Jeffersonville
Bucyrus
Marion
Steel Bar from Akron/Canton
Steel processed in Akron
Forging supplier in Jeffersonville
Machining in Bucyrus
Assembled into engine at Anna
Assembled into Auto at Marysville
Scrap recycled
Business opportunities exist in Ohio for the extended supply chain raw material, sub-tier, tier 1, transportation, warehousing, packaging & assembly
Raw Material Work-in-Process T1 Parts Completely Built Unit Sub-assembly
Supply Chain Management • Part Development • Production Planning • Parts Procurement • Parts Manufacturing • Parts Delivery • Final Manufacturing • Supplier Relationship Management
Supply Chain Management in Ohio
SUPPLIER
SUPPLIER
SUPPLIER
SUPPLIER
Consolidation Center
MILK RUNS
Third Party
Logistics
HONDA
Orders
Advance Ship Notice
November 20, 2014
Honda maximizes logistical utilization and minimizes environmental impact by optimizing transportation routing
HONDA
HONDA
Logistics Management
HAM
HMIN
Suppliers
Japan
China
Thailand
Many parts are shared between plants and suppliers requiring duplicate storage and handling
Mix freight to eliminate 20ft containers
Improve vanning efficiency Completely fill the containers Improve stack ability
Completely fill each case or skid
Europe
Goal: Eliminate waste in Container and Cases in order to reduce overall shipping cost through consolidation of product
November 20, 2014 Ohio’s Role in Global Logistics
Regional Logistics Center
*Located in Marysville, OH
Introduction to Honda Operations in Ohio
Supply Base in Ohio
North American Purchasing Division Organization
New Model Launch Activities
Introduction to Honda Operations in Ohio
Global Supply Chain Challenges
Honda’s Strategy for Local Supply Chain
Our Supply Base in Ohio
Brazil
Canada
US
Thailand
Turkey
Malaysia
Pakistan Taiwan Vietnam
Japan
Mexico
Indonesia
India
New Zealand
United Kingdom
China Egypt
November 20, 2014 North American Support of Global Production
• Many Honda suppliers in North America are successfully competing on a global basis • Honda has opportunity for competitive suppliers to support production overseas
4 door Accord Fog Light Japan & Thailand
CR-V Tail Lights Great Britain
November 20, 2014 Examples of parts being Exported from Ohio
Accord Engine Cover Japan
Bumper Turkey, Thailand & Vietnam
Honda suppliers are shipping parts to Honda manufacturing facilities throughout North America and 15 other countries around the world rely on parts from Ohio suppliers.
November 20, 2014
The ability to manage risk appropriately supports sustainable business strategies
Extended Supply Chain and Risk
Extended Global Supply Chain Assess Domestic Supply Chain
Exposure to…
Natural Disasters
Fire
and
Political Unrest
Pandemic
Financial
Data
Crisis!
Impact Assessment
Response Recovery
Reflection, Lessons learned
Purchasing’s Approach to Risk Management
Simplicity, Concentration, Speed, and Communication
Judgment of Risk Tolerance
Proactive
Identification & assessment
Intervention Action
Mitigation
Reactive
Stabilize
November 20, 2014
November 20, 2014 Summary
Ohio plays an essential role in Honda’s global operations
Honda has developed a robust supply chain in Ohio
Good relations with Ohio suppliers contribute to Honda’s success
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