The Procurement and Export division manages DCSA's business interests with its suppliers, including the facilitation of component exports by suppliers - a central element in the company's business strategy.

The division administers:

• Production purchases for all vehicles manufactured by DCSA. These are divided into three main commodities:
  
  • Body in White, covering body panel and chassis components;
  • Interior, exterior and electrical, including most of the trim, mouldings, paint and electronic components;
  • Powertrain, which covers all drivetrain, suspension, wheel and exhaust components as well as lubricants and sealers.
  • It is also responsible for non-production purchases, embracing all services, facilities and supplies not directly consumed in the manufacture of vehicles - from paperclips to the equipment in the plant's new Paintshop;
• Projects - which manages Mercedes-Benz, Mitsubishi Colt and Taxi projects within the division, to ensure that product viability and project milestones are met with focus on cost reduction, localization, support and engineering changes;
• Component exports which facilitates the sales and marketing of components to global markets as well as the logistics of shipping and delivery of the components to international customers;
• Business Excellence monitors and manages all contractual relations with suppliers in terms of DaimlerChrysler's global Extended Enterprise programme. It also includes government and parastatal activities that may affect supply chain management and exports as well as cost planning and cost optimization programmes. Business Excellence is further more responsible for IT systems and processes, strategy and employee development within the Procurement and Export division.

Extended Enterprise

This programme aims to make DCSA an innovative, profitable automotive company with the industry's finest supplier relationships. Together with supply partners, these relationships are based on the development of common strategies and goals through the Extended Enterprise Global Supply Network Integration Programme ( GSNIP ). The programme provides for closer trust, communication and partnership with suppliers to achieve better results as reflected in lower overall system costs, enhanced quality and superior technology. Further, it aims to ensure that consistent worldwide standards are adapted to commodity, brand, business unit and local requirements by working vertically across the entire supply network (consumers, dealers, DaimlerChrysler and all supplier tiers) and horizontally across all activities (design, engineering, procurement, logistics, manufacturing, distribution).

DCSA believes that an integrated, multi-tiered supply network creates value for the consumer, which ultimately benefits the entire supply network. The principles of the Extended Enterprise programme are:

• Customer-driven processes
• Efficient supply partners
• Supplier creativity and involvement
• Uncompromising commitment to cost, quality, cycle time and technology
• Ethical long-term partnerships
• Greater environmental and social responsibility

Component Exports

A relatively new part of DCSA's business, Component Exports, is a direct result of the South African Government's Motor Industry Development Plan (MIDP) and already accounts for approximately one third of the company's income.

Component Exports aims to:

• Neutralise all import duties at the lowest cost to DCSA in terms of the MIDP incentive that grants motor manufacturers import duty credits based on the value of exports, including component exports by suppliers;
• Create export projects where at least 60% of the MIDP benefit is retained by DCSA;
• Optimise the export logistics system (together with Mercedes-Benz C-class exports) to create positive synergies on shipping volumes consolidation / deconsolidation centers, packing materials, air freight, forwarding agents, road transportation and distribution;
• Integrate DCSA's Component Exports into DaimlerChrysler's global sourcing network.