International Procurement Services

NPM Procurement at Mercedes-Benz U.S. International

Inc.

Gernot Klein
General Manager IPS/AM
Procurement NPM NAFTA MB Cars & MB Financial Services

Gernot Klein IPS/AM

Slide 1

What is International Procurement Services (IPS)?

IPS operates on five continents and procures non-production material and services for
Daimler worldwide.

Americas/South Africa
Procurement Locations: 16
Employees: 129

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Europe
Procurement Locations: 15
Employees: 420

Asia/Pacific
Procurement Locations: 9
Employees: 96

Slide 2

IPS covers a wide range of commodities within its procurement

activities.

Gernot Klein IPS/AM

Slide 3

Based on which values and principles is IPS acting?

The Daimler strategy is the comprehensive basis for all business activities of
IPS, for it is the basis of the company and its success. The Daimler values
reflect the companys fundamental convictions and principles.

Gernot Klein IPS/AM

Slide 4

Based on which values and principles is IPS acting?

Based on Daimlers guidelines & principles, IPS aligns its actions according
to the highest ethical standards.

Gernot Klein IPS/AM

Slide 5

Based on which values and principles is IPS acting?

We expect from our suppliers to promote actively sustainable and compliant

operations.

Gernot Klein IPS/AM

Slide 6

Commodity Structure at IPS

The IPS Common Commodity Code (CCC) provides the basis for:
global volume bundling
identification of global suppliers
global product/service benchmarking
global supplier rating
IPS classifies the Common Commodity Codes (CCC) into three categories: Global, National,
and Local
Global CCC

Global Commodity Management

Global commodity manager

works in close cooperation
with the local buyer

National CCC

National Buying

National buyer buys centrally

nationwide wherever possible

Local CCC

Local Buying

Local buyer handles

procurement locally

Gernot Klein IPS/AM

Slide 7

Spend by Commodity

Top 3 Commodities MBUSI:

NP03
NP01
NP12

Production Machines and

Equipment
Construction Services
Services, General

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Top 3 Commodities US:

NP10
NP03
NP04

Marketing, Events and Exhibitions

Production Machines and Equipment
IT, Telecommunications, Office Machinery
Slide 8

National Buying
Daimler has a national buying initiative in order to optimize the procurement
process and increase volume bundling across the US.
Wherever possible we bundle volume across divisions, brands and locations

DTN
A
MBF DD
S
C

MBUSA

TBB
DTNA
MBUSI

MBUSI: Mercedes-Benz US
International
MBUSA: Mercedes-Benz USA
MBFS: Mercedes-Benz Financial
Services
DTNA: Daimler Trucks North America
DDC: Detroit Diesel Corporation
TBB: Thomas Built Bus
Gernot
Klein Vans
IPS/AM
DVM:
Daimler
Manufacturing

DVM

Slide 9

How to become a supplier for Mercedes-Benz U.S.

Evaluate your product

International
Inc. or service.

Review MBUSIs production facility.

Analyze the area of potential business for your firm.
Find out who the buyer for your product is and contact them.
Present your business case to the buyer and any end-user referenced by the buyer.
Make pricing structure clear.
Inquire about opportunities, for example, RFQs.
Look into second tier opportunities with some of our major suppliers.

Gaps in our non-production material supply chain

Need more local suppliers who can compete with regional and global suppliers.
Require suppliers to be flexible with production schedules and project timelines.
Need to expand our supplier base for the following commodities:

Custom wooden body skids and

pallets
Equipment engineering and design
services
Logistics engineering services
Packaging engineering services

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Automotive equipment integrators

Building siding fabrication and installation
Machine shop services
Industrial equipment cleaning
Facilities maintenance

Slide 10

In order to conduct business successfully, Daimler expects of a

supplier:

Embrace competition.
Agreement to the usage of standard contract terms and conditions.
Quotes should be understandable and provide transparency of the pricing
calculation.
Acceptance of using eDocs our electronic document exchange platform.
Understanding that only Purchasing can award business to a supplier.
Acknowledgement that if you receive a request to do business without a PO, that
you will contact Purchasing immediately.
Seek opportunities within Daimler through our national buying initiative.

Gernot Klein IPS/AM

Slide 11

Thank you for your attention!

Gernot Klein
General Manager IPS/AM
Procurement NPM NAFTA MB Cars & MB Financial Services

Gernot Klein IPS/AM

Slide 12