Tom Lake Vice President North American Purchasing Honda North - PowerPoint PPT Presentation

Tom Lake Vice President North American Purchasing Honda North America, Inc.

40 Y 40 Y ears ears of of Accord Accord in North America in North America Acura Acura Anniversary in Anniversary in North America North America Consistently deliver core brand values with a focus on the customer Consistently deliver core brand values with a focus on the customer

Challenges for Team Honda Global M odel Launches Global M odel Launches New M odel Cadence New M odel Cadence 2016 2016 2017 2017 Car Wars Report Car Wars Report M exico Plant Ramp up M exico Plant Ramp up Production Volume: Production Volume: North America is Honda’s global North America is Honda’s global volume leader (40%) volume leader (40%) N Ramp up of Frame, Engine and Ramp up of Frame, Engine and Transmission Plants in Celaya Transmission Plants in Celaya Production volume in M illions

Who is Team Honda ? Purchasing Purchasing M anufacturing M anufacturing Business Business Sales Sales Development Development Partners Partners

Why does One T eam M atter? Insufficient WIP causing Supplier frequent down time Tier 1Supplier Parent Co Warning Sign Tier 2 Not aware of Process 1 Process 2 Process 3 supplier urgent Supply situation Impact Warning Sign Warning Sign Warning Sign Customer Sporadic down time Continuous Tier 2 parts not due to equipment expedite delivery delivered on time Are you kidding me? Should we tell our customer Remember how they about this? reacted last time?!!!

Basis for Quality Relationships Quality Honda Philosophy Viewpoint Relationships and of End with Suppliers Core Values Customer

Company Behavior Company Behavior – Individual Behavior Individual Behavior Supplier Supplier Relationship Relationship Influences… Influences… Company/ Company/ M anagement M anagement  Accessibility  Transparency Personal Personal Interactions Interactions  Responsiveness  “Going the extra mile”  Fairness  Clarity Individual personal interactions can make or break Individual personal interactions can make or break our supplier relationships our supplier relationships

Associate Development • Honda heritage Honda Philosophy • Respect for the individual • The joy of buying, selling, & creating • Honda’s Purchasing philosophy • Purchase in the markets we sell Cornerstones Training • Strong, long term relationships with suppliers • Establishing a self reliant purchasing framework • Expectations of Purchasing Associates Associate Workshops • Strengthening relationships with suppliers • Expectations of suppliers to Honda Company Policies • Ethics and Purchasing New for 2016 New for 2016 • Introduction of the Honda Core Values Core Values & New! • Linkage to the Honda Philosophy • Interactive Values Discussion Supplier Relations • Collaborative Supplier Relationships

Supplier Supplier T ogether we can provide products that will exceed customer expectations.

Thank You! Thank You!