Daimler Vans Manufacturing in Ladson SC Integral part of the global Daimler production and supply networks May 28, 2008

Best Practices…?

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

Dodge and Freightliner Sprinter Products of Daimler Vans Manufacturing LLC

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

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

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

Process Landscape Logistics Product Development Process Order Process Development Ø Program Planning Ø Logistics compatible Product Design Ø Order Processing Suppliers Ø Specification Sheet and Delivery Instructions Material Handling Engineering Ø Technical Support Engineering Ø Cost Calculation for Supply Chain (TCO) Ø Production Control Ø Container Planning/Design Ø Documentation Ø Planning of Transportation Logistics Ø Distribution Sales & Marketing Docu- Order Production mentation Production Distribution Customer Center Control Change- Mgmt Ø Implementation Control IT Material Ø Prototypes Supply Ø Optimization of Call Ups Suppliers Ø Securing availibility of Materials Ø Planning of Relocation Logistics 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

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 RLC- material 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

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

Agenda Daimler Vans Manufacturing LLC 1 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

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

The Global Ocean Container Network 2007 by Trade Main routes Europe  NAFTA  Europe 137.500 TEU 56 % Europe  Asia-Pacific/Middle East  Europe 39.400 TEU 17 % Europe  South America  Europe 27.350 TEU 11 % Europe  Africa  Europe 23.200 TEU 9 % Others (Cross-trades) 17.550 TEU 7 % Total 245.000 TEU 100 %

The Global Airfreight Network

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

The Global Airfreight Network 2007 by Trade Main routes Europe  NAFTA  Europe 26.700 tons 42 % Europe  Asia-Pacific/Middle East  Europe 16.600 tons 26 % Europe  Africa  Europe 4.130 tons 7 % Europe  South America  Europe 4.100 tons 7 % Others (Cross-trades) 11.470 tons 18 % Total 63.000 tons 100 %

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

Major cargo flows of the global CEP network are Intra-NAFTA, Intra-Europe and Intra-Middle East Total volume: 9.470 t Total turnover: 35M € 0.08 t

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

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