Daimler Vans Manufacturing in Ladson SC Integral part

Daimler Vans Manufacturing in Ladson SC Integral part of the global Daimler production and supply networks May 28, 2008 Titel der Präsentation / Abteilung / Datum (Tag. Monat. Jahr)

Best Practices…? 2

Agenda 1 Daimler Vans Manufacturing LLC 2 Mercedes Benz Vans 3 Daimler AG 3

Dodge and Freightliner Sprinter Products of Daimler Vans Manufacturing LLC 4

The Logistics Process at DVM is designed according to the common Daimler Supply System All Logistics and Supply Processes will follow the structure of the Supply Backbone – with the enhanced vision to shape the world’s most effective supply chain 5

Agenda 1 Daimler Vans Manufacturing LLC 2 Mercedes Benz Vans - The Sprinter 3 Daimler AG 6

Mercedes-Benz Vans Sprinter Products Mercedes-Benz Sprinter Cab Dodge & Freightliner Sprinter Crew Cab Passenger Van VW Crafter Cargo Van 7

Process Landscape Logistics Product Development Process Order Process Ø Program Planning Ø Order Processing Ø Technical Support Ø Production Control Ø Documentation Ø Distribution Sales & Marketing Development Engineering Order Center Suppliers Docu. Production mentation Production Distribution Control Change. Mgmt IT Logistics Material Handling Engineering Ø Logistics compatible Product Design Ø Specification Sheet and Delivery Instructions Ø Cost Calculation for Supply Chain (TCO) Ø Container Planning/Design Ø Planning of Transportation Logistics Material Supply Suppliers Customer Ø Implementation Control Ø Prototypes Ø Optimization of Call Ups Ø Securing availibility of Materials Ø Planning of Relocation Procurement Process The Logistics Process Landscape was designed on basis of the specification sheet Sprinter, the Mercedes Production System (MPS) and the Daimler Supply System (DSS). Target: to improve the economic efficiency and qualitative optimum by standards and individual solutions 8

Major Logistics Targets < Simple, economic and solid material supply processes < Continuous transparency within the supply chain (inventory, deadlines, locations) < Optimized inventories in supply chain < Direct delivery to point of use < Minimizing handling by direct deliveries (JIS, JIT) and one-tier supply process (RLC) < One Piece Flow for sequenced parts < One Box Flow (same container from supplier to point of use) for JIT- and RLCmaterial < Ordering of supplies by consumption in production lines (Pull Princip) < Continuous use of reusable containers < Container concept that allows pool-processing and modular, fold-away containers < Standardized KPI‘s (Cost & Quality) and Continuous Improvements 9

Cargo Flow - Duesseldorf Sprinter Plant Daily 550 Trucks in and out 11 North 22 East Total: 270 trucks daily Abroad 90 Germany 110 122 West Total: 280 trucks daily Trucks daily from Germany Stock Trucks daily to harbors 45 South Trucks daily from Europe 20 West 8 North 12 East Barges weekly 29 South Truck daily from overseas Railway cars daily 10

Agenda 1 Daimler Vans Manufacturing LLC 2 Mercedes Benz Vans 3 Daimler AG 11

All Daimler revenues from automotive business and automotive-related services Joint Ventures Note: Additionally 48, 078 employees in sales organization 12

The Global Ocean Container Network 13

The Global Ocean Container Network 2007 Incorporating Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, Chrysler, GSP/MOPAR 14

The Global Ocean Container Network 2007 by Trade Main routes Europe NAFTA Europe Asia-Pacific/Middle East Europe South America Europe Africa Europe Others (Cross-trades) 7% 137. 500 TEU 56 % 39. 400 TEU 17 % 27. 350 TEU 11 % 23. 200 TEU 9% 17. 550 TEU Total 245. 000 TEU 100 % 15

The Global Airfreight Network 16

The Global Airfreight Network 2007 Incorporating Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, Chrysler, GSP/MOPAR 17

The Global Airfreight Network 2007 by Trade Main routes Europe NAFTA Europe Asia-Pacific/Middle East Europe Africa Europe South America Europe Others (Cross-trades) 18 % Total 26. 700 tons 42 % 16. 600 tons 26 % 4. 130 tons 7% 4. 100 tons 7% 11. 470 tons 63. 000 tons 100 % 18

Global CEP stands for „Courier-Express-Parcel Services“ and incorporates time critical, international shipments within the entire Daimler network 19

Major cargo flows of the global CEP network are Intra-NAFTA, Intra-Europe and Intra-Middle East 7 t 49 t 0. 7 t 41. 5 t 3 t 4. 486 t 437 t 3. 056 t 146 t 0 t 5 11 t 114 t 125 t 469 t 5 t 50 t 8 t 1 0. 3 t 250 t 2 t 36 t 13 t 2 t 0. 05 53 t t 13 t 2 t Total volume: 9. 470 t 0. 08 t Total turnover: 35 M € 20

Our Challenges in a Company with Global Production- and Supply Networks Market Volatility Leads to Fluctuations in Demand Increasing Costs for Transportation Services/Capacity Constraints Globalization of the Supplier Base Global Production- and Supply Network within Daimler Suppliers Daimler Plants Customers Emerging Markets Management of Complexity and Integration of Global Transportation Volumes into a Common Transportation Network at Optimal Costs 21

Thank you for your attention ! 22