Logistic System Analysis at Renault

Group Renault Romania

Faculty of Business and Tourism

1. INTRODUCTION

Groupe Renault (legally Renault S.A.) is a French multinational automobile

manufacturer established in 1899. The company produces a range of cars and vans, and in the
past has manufactured trucks, tractors, tanks, buses/coaches, aircraft engines,
and autorail vehicles.

The founder of the company are: Louis Renault, Marcel Renault, Fernand Renault.

According to the Organisation Internationale des Constructeurs d'Automobiles, in 2016

Renault was the ninth biggest automaker in the world by production volume. By 2017,
the Renault–Nissan–Mitsubishi Alliance had become the world's biggest seller of light vehicles,
bumping Volkswagen AG off the top spot.

Headquartered in Boulogne-Billancourt, near Paris, the Renault group is made up of the

namesake Renault marque and subsidiaries, Alpine, Automobile Dacia from Romania, Renault
Samsung Motors from South Korea, and AvtoVAZ from Russia. Renault has a 43.4% controlling
stake in Nissan of Japan, and a 1.55% stake in Daimler AG of Germany (since 2012, Renault
manufactures engines for the Daimler's Mercedes A-Class and B-Class cars). Renault also owns
subsidiaries RCI Banque (automotive financing), Renault Retail Group (automotive distribution)
and Motrio (automotive parts). Renault has various joint ventures,including Oyak-
Renault (Turkey), Renault Pars (Iran). The French government owns a 15% share of Renault.

Renault Trucks, previously known as Renault Véhicules Industriels, has been part of AB
Volvo since 2001. Renault Agriculture became 100% owned by German agricultural equipment
manufacturer CLAAS in 2008.

Together Renault and Nissan invested €4 billion (US$5.16 billion) in eight electric
vehicles over three to four years beginning in 2011.

Renault is known for its role in motor sport, particularly rallying, Formula 1 and Formula E.
Its early work on mathematical curve modeling for car bodies is important in the history
of computer graphics.

Automobile Dacia SA
Headquarters: Uzinei street, no. 1, Mioveni, 115400, Argeș County, Romania
Registered at the Argeş Trade Register Office under no. J03 / 81/1991, CUI 160796

Group Renault Romania, is a success story.

Car manufacturer since 1898, the Groupe Renault is present in 134 countries and in 2018 it
sold 3.9 million cars.

The Groupe is harnessing its international growth and the complementary fit of its five
brands, Renault, Dacia and Renault Samsung Motors, Alpine and LADA, together with electric
vehicles and the unique Alliance with Nissan and Mitsubishi.

In order to meet the great technology challenges of the future and to continue its profitable
growth, the group draws on its international development.

Groupe Renault is the only company in Romania which incorporates all activities specific
for a car manufacturer, something which has generated high economic performance and a wide
range of job offers in different fields: market studies, design, engineering, manufacturing and
supply chain, sales, business services and financing.

Last year, the turnover figure for Groupe Renault Romania went beyond the threshold of 6
bn. euros. At the core of the Global Access range (the range to which the Dacia models
manufactured in Mioveni belong), the Groupe is leader on the local market with the Dacia and
Renault brands. The 18,000 employees of the Groupe Renault Romania innovate with respect to
products and best practices and are recognized for their professionalism.

Romania's Logistics Department has a team of over 2,000 people, of which 900 employees
on a hierarchical level and 1,100 employees on a functional level (in the Logistics department at
the Mechanical and Chassis Plant and in the Logistics department at the Vehicle Factory).

Data about Renault Group:

Group Renault Romania

Financial data analysis on the past years in (euro) billions for Group Renault:
 2. IDENTIFICATION OF LOGISTICS ACTIVITIES

The Logistics Direction in Romania ensures the proper operation of the part
ordering/supply and transport process for the manufacturing of vehicles and mechanical
machinery in Dacia plants at Mioveni, as well as in the 22 Renault-Nissan plants producing
vehicles in the Global Access range (Logan, Sandero, Duster, Lodgy, Dokker) internationally.
 Another equally important activity is to serve the Commercial Direction by organising
and dispatching the final products (new vehicles) to the concessionaire network in Romania and
abroad. Dacia Logistics Direction comprises the following activities and organisational
structures:

● AILN Mioveni (Alliance International Logistics Network) organised in three departments:

Industrial Logistics, Operation, Quality and Engineering,

● Department for Package/Vehicle Transport (CLE) and Administrative Reception

● Department for PHF Tertiary Logistics and Package Repair

● Audit and Process Organisation Department

● The activity of the Vehicle Expedition Center

● Monozukuri Logistic Programme

AILN (Alliance International Logistics Network)

AILN Mioveni was established in 2005 as an export platform, its main mission being the
conditioning and dispatch of Logan parts to foreign clients who produce vehicles in the Entry
range, currently Global Access range.

At present AILN Mioveni manages the export of parts for vehicle manufacturing in 23
plants in Russia, Morocco, Iran, India, Brazil, South Africa, Columbia, Argentina, Algeria,
Slovenia, Turkey and South Korea. AILN Mioveni platform manages a total of 17,480 system
references for all clients, which stand for necessary parts for manufacturing vehicles in the
Global Access range, in various versions. To ensure the supply of these parts, the AILN centre is
in permanent contact with 616 suppliers, of which 100 are located in Romania and 516 abroad.
In 2016 2,637,036 m³ of parts were dispatched from AILN Mioveni, the equivalent of 1,400,239
assembled vehicles.

Between 2005-2016 AILN Mioveni dispatched almost 15 million m³ of parts which

contributed to the assembly of more than 7.5 million vehicles in Renault –Nissan Alliance plants
worldwide.
 3. Classification and evaluation of logistics services

Department for Package/Vehicle Transport (CLE) and Administrative Reception

On the platform from Mioveni there is a parking lot serving the Dacia Central Logistics
Department. The car park covers an area of 15,000 m2 in the immediate vicinity of the RIR-ILN
Center (Renault Industrie Roumanie - International Logistics Network) it is well delimited and
permanently secured.
It is used for a better organization of vehicles transporting goods: it has a reception area for
trucks that supply the Assembly Department, Mechanical Plant, Renault Mécanique Roumanie,
Auto Chassis International, ILN Center and Dacia suppliers, but also a reserved space for trailers
on which new vehicles are shipped. Parking has the capacity to receive over 150 trucks every
day.
Nearby there is an office space. The offices built have an area of 100 m² and are intended for
the personnel who perform the operations of administrative reception and the Directorate of
General Security. In the parking lot are all the trucks that arrive with the goods, both nationally
and internationally, for the registration of documents and the directing to the specific destination
within the industrial complex.

The activity of the Vehicle Expedition Center

The activity of the Vehicle Dispatch Centre (Centre Livreur Expéditeur – CLE) consists of
vehicle take over from the assembly line, storage in the Mioveni logistic park and dispatch to the
dealer network. Here they undergo several preparation stages prior to delivery and the delivery
documents are issued. Then, depending on their destination, vehicles are transported by road, rail
and sea.
 More than 570 trucks and 11-15 trains loaded with vehicles are delivered from the dispatch
park every week. A truck has a loading capacity between 6 - 9 vehicles and a train between 224-
293 vehicles, depending on the destination country and the type of vehicle. The number of
vehicles dispatched in 2016 was 320,913, of which 33,407 vehicles to 74 concessionaires in
Romania and 287,506 vehicles delivered for export (to 87 destinations).

In addition in 2016 CLE dispatched 23,509 trucks with 170,988 vehicles and 567 trains
loaded with 149,480 vehicles, as well as 445 special vehicles delivered by 249 trucks.