Martin Horneck

Leads Purchasing, Supply Chain and Supplier Operations for FCA in North America

Chief Procurement Officer / Chief Supply Chain Officer / Interim Management Executive with twenty plus years global lean automotive and chemical experience working in multibillion dollar international corporations.

Managed purchases for $2.1 billion in yearly direct raw material and indirect material as well as CAPEX with a staff of 150 employees globally. Achievements: Led procurement for Axalta as it became a standalone public company, resulting in one of the most successful IPOs ever conducted by Private Equity firm Carlyle. Created and implemented a world-class global purchasing and logistic organization. Developed standardized lean global sourcing and logistic processes (Procurement Factory). Enabled business growth through targeted raw material cost reduction programs and best in class supplier management. Implemented cross-functional Matched Pairs to jointly develop and drive global category strategies. Doubled cost savings performance of Axalta to $120 – 180 million (6% - 9% per annum). Significant supply base reduction (1000 suppliers down to 750 suppliers) through categorization of suppliers as Grow/Fix/Exit. Initiated a cross-functional complexity reduction program for Axalta resulting in 25% fewer part numbers (Total SKU: 10,000) and a 5% margin improvement. Increased low cost country purchases by 25% to $500 million. Developed and implemented a dual sourcing program to address single sourced raw material purchases (Reduction of single sourced materials by 20% -$400 million).

Managed $9 billion in yearly automotive component and raw material purchases, including indirect material and CAPEX with a staff of 600 employees globally. Achievements: Established a high performing global purchasing and supplier development organization. Developed and implemented standardized sourcing and supplier development processes, with cross-functional integration of all TRW businesses. Achieved more than $300 million in annual raw material cost reductions (3 - 4% per year) on top of significant savings on new programs. Cut CAPEX and indirect material cost by 10% ($200 million) per year. Formed raw material claw back teams and implemented processes leading to incremental raw material savings of $180 million. Created global supplier, commodity, and product strategies, including forward buying and dual sourcing. Implemented a global purchasing toolbox. Established a cross-functional Matched Pair process between engineering, purchasing, and operations to optimize the bill of material and the material to sales percentage. Categorized the supply base into Grow/Fix/Exit suppliers, achieving a 10% (-200 supplier) reduction. Developed and migrated sourcing to a new supply base in low cost countries. Implemented a global people management process resulting in the development promotion of several new senior leaders.

Managed the global purchasing organization (100 employees), including the Ford joint ventures, covering $1 billion in transmission component purchases globally. Achievements: Established a new global purchasing organization for the GETRAG Group, including the Ford joint ventures and procurement for the new Irapuato, Mexico dual clutch transmission plant. Setup a purchasing and supplier development organization for the newly founded GETRAG U.S. and GETRAG China operations. Developed a supplier cost reduction program leading to a 20% material savings over 4 years ($200 million) and a supplier quality improvement program producing a 30% annual quality improvement. Introduced cross-functional design workshops to lower the material cost of the new dual clutch transmission family.

Global Powertrain Purchasing Director, Metallic 5/2003 - 3/2007 Managed and directed $6 billion in metallic purchases globally with a staff of 60 employees. Achievements: Created a purchase agreement enabling the sale of New Venture Gear ($1,5 billion) and the transfer of 400 United Auto Workers (UAW) employees to a GM supplier. Exceeded cost reduction targets ($150 million) despite significant raw material cost increases by 10-50%. Migrated sourcing to low cost countries, resulting in 10% to 30% material cost reductions. Defined a new collaborative way to source business through the Piston Strategy, leading to 12% material savings. Implemented the Powertrain Casting Strategy, in cooperation with GM manufacturing, to eliminate a duopoly in the market resulting in a 20% cost reduction. Global Powertrain Purchasing Director, Electrical and Chemical 10/2001 - 4/2003 Managed and directed $4.5 billion in electrical and chemical purchases globally with a staff of 25 employees. Achievements: Initiation of a $150 million starter and generator division spin-off with finance and labor relations, leading to the creation of a new company (Delco Remy). Exceeded cost reduction targets by 25% ($250 million) per annum. Identified and implemented new technologies to reduce cost of microprocessors by 30%. Created a global technology roadmap for engine management systems. Launched a cost analysis program for process technologies resulting in 20% savings. Implemented an engine controller strategy producing a $200 million savings over three years.

Responsible for production control, material handling, logistics and purchasing at the Toyota modeled lean production Opel Eisenach plant with a staff of 130 people leading to extensive lean production expertise. Achievements: Successfully launched two new carlines (Opel Astra and Corsa) for the plant, surpassing the launch curve by 10%. Implemented a new material ordering system (MGO) requiring totally new material and inventory management processes. Implemented a just-in-time assembly and sequencing facility (outsourcing 90 jobs). Development of a long-range Kanban system to reduce inventory by 20%. Reduced average inventory in plant to 8 hours.