Intermodal Logistics Operation In Ford Otosan, Turkey

Recai IŞIKTAŞLogistics Manager

Ford Otosan IntroductionTurkish Automotive Industry Ford Otosan’s Logistics ApplicationsFord Otosan’s Intermodal System

Agenda

KARTAL

Parts Dist. Center 1997

KOCAELİ

2000

İNÖNÜ

1982

FORD OTOSANİSTANBUL

1959

““Best Ford BAO Plant in Europe”Best Ford BAO Plant in Europe”2002-2002-20062006 FPS Audit Results FPS Audit Results

320.000 units annual production capacity Sea front location, integrated pier/terminal covering exports & BU imports. Transit & Transit Connect production Total of 340.000 m² covered area on 1.600.000m² land.

KOCAELI PLANT

0

50.000

100.000

150.000

200.000

250.000

300.000

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Total Yearly Production of Ford Otosan

In 2000 production unit was 40.000, in 2007 Ford Otosan expecting 280.000 unit production. • Export oriented strategy.

• Kocaeli Plant.

Total Yearly Export of Ford Otosan

With the export oriented strategy of the Kocaeli Plant, the export volume of Ford Otosan has

increased from 33.000 in 2002 up to 190.000 in 2007

33.058

73.182

136.913

159.655

182.244 190.000

020.000

40.00060.000

80.000100.000

120.000140.000

160.000180.000

200.000

2002 2003 2004 2005 2006 2007

Improvement of Turkish Automotive Industry

Turkish Turkish Automotive Automotive Exports increases Exports increases every year every year (Million$)(Million$)

Industry Value Industry Value Industry Value Industry Value Industry Value Industry Value Industry Value Industry Value Industry Value1 Readywear 8.000 Readywear 7.551 Readywear 7.451 Readywear 7.489 Readywear 9.172 Readywear 11.517 Readywear 13.098 Readywear 13.699 Automotive 14.8762 Iron 3.000 Iron 3.082 Iron 3.330 Iron 3.961 Automotive 4.715 Automotive 7.191 Automotive 10.698 Automotive 12.794 Readywear 13.9873 Textile 2.600 Electric 2.610 Electric 2.792 Automotive 3.717 Iron 3.954 Iron 5.389 Iron 9.220 Iron 9.440 Iron 12.7384 Electric 2.600 Textile 2.565 Automotive 2.636 Electric 3.248 Electric 3.486 Electric 4.382 Electric 6.087 Electric 6.964 Chemicals 8.7855 Chemicals 1.800 Automotive 2.369 Textile 2.590 Textile 2.867 Textile 2.978 Textile 3.664 Textile 4.566 Chemicals 6.750 Electric 8.0676 Grain 1.700 Chemicals 1.774 Chemicals 1.891 Chemicals 2.193 Chemicals 2.680 Chemicals 3.579 Chemicals 4.007 Textile 4.861 Textile 5.5767 Automotive 1.664 Grain 1.220 Grain 1.178 Grain 1.378 Grain 1.150 Grain 1.521 Machinery 2.093 Machinery 2.666 Machinery 4.217

696.688

# of Vehicles 297.862 430.947 270.685 346.565 533.354 823.408 879.092 987.580

2005 2006

# of Vehicles 37.227 104.079 205.163 261.692 360.950 518.521 561.674

2001 2002 2003 2004No 1998 1999 2000

European Production in Countries

5.758

3.549

2.753

1.803

1.038

988

882

GERMANY

FRANCE

SPAIN

ENGLAND

ITALY

TURKEY

BELGIUMThousands

6.6.

Importance of Logistics Material Inbound

Logistics Finished Vehicle Outbound

Logistics

Main Production Location

Key Factor: Effective Logistics Management

That level of mass production requires a similar mass movement and handling.

Not to make this traffic to be a chaotic situation, the key is; Effective Logistics Management.

“The one who manages Logistics better will be one step ahead of the other.”

HOW FORD OTOSAN MANAGES THE OVERALL

SUPPLY CHAIN?

FORD OTOSAN Logistics

European Inbound – Consolidation Center

Cologne

Gölcük

• Materials from European Suppliers flow to Consolidation Center located in Cologne.

• % 85 of total inbound material transport from Consolidation Center (EDC).

• % 15 of material is directly shipped from suppliers.

From CologneDaily Volume : 3.300 cbm

Daily Loading : 40 - 45 units*

Yearly Loading : 11.000 units* * Swapbody, trailer, sea container

Stable Transit Time between the Loading and

Production Locations,

Additional Costs on road & instable market price

Environmental Effects,

WHY INTERMODAL SHIPMENTS ?

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

TreylerIntermodal

I N T E R M O D A LIMPLEMENTATION OF

BASIC PRINCIPALS

Usage of durable packaging instead of expandable,

Usage of high cube equipment

Limited material handling

Short and stabile transit time

Traceability during transit time

Cost affectivity

Intermodal Transportation Mode

RouteSerbia

Route Romania

Route Route SloveniSloveniaa

Intermodal Routing • general route plan via Romania, Serbia or Slovenia• decision given according to cost and route performance

Transit time• train transit 5,5 days (terminal-terminal)• collection & delivery 0,5 days each

COLLECTION

TRAIN DEPART. TRAIN ARRIVAL

DELIVERYDELIVERY

DAYS

Mon. Tue. Wed. Thu. Fri. Sat. Sun. Mon. Tue.

GENERAL TRANSIT TIME SCHEME

PLANNED TRAIN

ARRIVAL

Advantages Of the Intermodal System

Costs affectivity, Stability of freight cost, Effective cube utilization, Reliable and stable transit times, Visibility & Easy control, Availability of equipment, Sensible to the environment,

Environment FriendlyBy motorway Koln-Kosekoy=2.754 km Average 63 km/h means 44 hours

12.000 voyage per year means

Harmful gases have not been exhausted per year.

CO - Carbon Monoxite 483 gr/h x 44 h = 21,25 kgHC - HydroCarbon 152 gr/h x 44 h = 6,69 kgNOx - Nitro Oxite 1150 gr/h x 44 h = 50,60 kgPM - Particule 23 gr/h x 44 h = 1,01 kg

CO - Carbon Monoxite 255.024 kgHC - HydroCarbon 80.256 kgNOx - Nitro Oxite 607.200 kgPM - Particule 12.144 kg

INBOUND LOGISTICS (MATERIAL)INBOUND LOGISTICS (MATERIAL)Global InboundGlobal Inbound

Air Transportation ModeAir Transportation Mode 1 % 1 %Trailer Transportation Mode Trailer Transportation Mode 37 % 37 %Intermodal Transportation ModeIntermodal Transportation Mode 60 % 60 % Sea ShipmentsSea Shipments 2 % 2 %

FORD OTOSAN Logistics

Year 2007Year 2007

International Van of the Year International Van of the Year FORD TRANSITFORD TRANSIT

““The one who manages The one who manages Logistics better will be Logistics better will be one step ahead of the one step ahead of the

other.”other.”