Regional Supply Strategy

Regional Supply Strategy

Objective
Maximize Profit BATO LA.

Output
New supply proposal among LA Factories Based on Gross Profit, Market needs and Productivity.

Analysis
OB2012 information will be analyzed by business cases. We have already three Sceneries: 1. REP Demand (TOP 5 Sizes) Business case 2. Imports from BSJ, BSAP, BSEU and Sources different BSLA 3. OE New Business Strategy Simulation and sk. In this first phase, (Business case), analysis will be at GP level.

Code Analysis
Sizes: Market Country Use Production AR AR AR AR MX MX MX MX CR CR CR CR BR BR BR BR AR BR CR MX AR BR CR MX AR BR CR MX AR BR CR MX Demand 175/75R13 Pattern: Multihawk Gross Margin Gross Margin ($) (%) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 800.00 595.00 748.00 820.00 1,050.00 885.00 1,357.50 1,650.00 270.00 216.00 400.00 405.00 2,700.00 2,700.00 2,844.00 3,060.00 29% 21% 27% 29% 24% 20% 31% 38% 20% 16% 30% 30% 30% 30% 32% 34% SUB Plant Capacity 120 Factory Cost Landed Cost Market Price $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 20.00 21.00 19.00 18.00 20.00 21.00 19.00 18.00 20.00 21.00 19.00 18.00 20.00 21.00 19.00 18.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1.05 1.52 1.80 2.00 2.10 0.95 1.60 1.68 0.90 1.00 1.52 1.80

100

28.00

AR

150

29.00

MX

150

50

27.00

CR

80

300

30.00

BR

200

Outputs: Better mix to increase profit Possibility to transfer molds among BSLA Sources (Considering MTP Demand) Risk analysis Scale Economy

First Conclusions
Top 5 Sizes:
Size
175/70R13 165/70R13 175/65R14 185/60R14 185/65R14 205/55R16 195/60R15 235/75R15 185/70R14 175/70R14

Demand OB2012
2,487,134 925,796 764,414 654,607 527,904 311,392 292,368 251,456 251,100 228,983

Size
Top 5 Top 10 Total Demand REP

Demand OB2012
5,359,856 6,695,156 11,174,863

%
48% 60%

First Conclusions
Size 175/70R13:
Size: Pattern
MULTIHAWK FR-380 SEIBERLING POTENZA SEIBERLING MIRAGE F77 SEIBERLING F-570 FUZION F-590 SEIBERLING WINTERFORCE CARREFOUR SEIBERLING SEIBERLING CHAMPION SEIBERLING POTENZA POTENZA 175/70R13

Sub-Pattern

500 RE740 TR II SR

20 different patterns
ST70

300

EXCLUSIVE RE910 RE080

Next Steps
Get information from subsidiaries:
Factory Cost (National Production) Purchase Price (Imports) Landed Cost (Imports) Customer Price (Including discounts) (National Production & Imports) Exchange Risk factor (Imports) Molds Inventory (National Production) Tire/Day/Mold (Cycle) (National Production) Mold Type (National Production) Sub-Channel (National Production & Imports)

Understand Business Model for each Subsidiary (REP) BSMX Example:

Suppliers
MX BSJ BATO BSEU BSCR BSBR BSAR

Subsidiary

Markets

MX

MX

Next Steps
Understand Business Model (General)

BSXX

BSXY

Dealer
Mass merchandiser National accounts etc

Consumer

Thank you