Supply Mode | Short Description | Suitable for | Advantages | Drawbacks |
Built-Up | > No plant in target country. > Vehicle is manufactured in the origin country and sent completely finished in the target country. | > Confidential volumes (< 2000 vh/year) > Risky countries | > No local plant investments | > High logistics costs > High customs costs > No added value in target country |
SKD Semi Knocked Down | > Assembly only Plant construction in target country. > The welded, painted and assembled body of the vehicle is sent from origin country. > Rest of parts are sourced locally or sent from orgin country | > Very small volumes (< 5000 vh/year) > risky countries or new target plant | > Reduced plant investments > No production control in target country plant | > Quite high logistics costs > Quite high customs costs > Low Added value in target country |
CKD Completly Knocked Down KD Mode (lot) | > Complete Plant construction in target country. > Target plant orders in vehicle quantities by lot (10, 12, 48 vehicles...) to a KD Plant or Center in the origin country which sends by lot, all parts necessary to manufacture the 10, 12 or 48...vehicles. > Rest of parts can be sourced locally | > Small volumes (< 15000 vh/year) > New target plant or with low maturity | > No production control in target country plant > Quite low logistics costs > Quite low customs costs > Added value in target country apreciable | > High plant investments > Production control in KD Center |
CKD Completly Knocked Down IPO Individual Part Ordering | > Complete Plant construction in target country. > Target plant orders in parts quantities to a KD plant or center in the origin country which sends individually all parts. > Rest of parts can be sourced locally | > Average to High volume (> 15000 vh/year) > Target plant with quite high maturity | > Low logistics costs > Low customs costs > High added value in target country | > High plant investments > Production control in Plant > Quite numerous suppliers relationships |
Direct | > Complete Plant construction in target country. > Rest of parts can be sourced locally > Target plant orders in parts quantities to its local or foreign suppliers which send directly all parts. | > High Volumes (> 15000 vh/year) > Target plant with high maturity | > Minimum logistics costs > Minimum customs costs > Maximum added value in target country | > High plant investments > Production control in Plant > Numerous suppliers relationships |