Supply Chain Management Experts
Keys to set up a resilient Supply Chain for Aerospace Companies A cluster of Experts in Supply Chain Advisory Management who wish to do Progress training and consulting as we driver would have liked to have as operations managers. 3 Activities Training
Technology
Founded in 2009 PARIS 35 team member TOULOUSE 8% of our 250+ customers SAN DIEGO turnover is 500+ projects invested in R&D
All industries Our references with Aerospace companies
& more than one hundred Small & medium sized enterprise in the ASD sector Keys to set up a resilient Supply Chain for Aerospace Companies
Aerospace Supply chains
Resilience & Supply Chain
Keys for a resilient Supply Chain for Aerospace Companies Aerospace Supply Chain specificity the Diamond
Source Our Observations
Aerospace Supply Chain Challenges (before COVID-19)
Commercial Aircraft Business Jet Defense (A&D) Space
Demand shape Increase Stable Increase Increase
Assemble to order - ATO Assemble to order - ATO Engineer to order - ETO Engineer to order - ETO Environment Make To Order - MTO Make To Order - MTO Make To Order - MTO Make To Order - MTO
Price / Leadtime Dev cybersecurity , Already significant Product Price Platform-level investment in low-Earth- Green Aircraft orbit (LEO) satellite Market Lead time autonomy, Hypersonic challenge constellations, supply Safety missile hubs and orbital fuel Newcomers stations
Order winner Innovation Customization Operational Reliability Quality Lead time Our Observations
Aerospace Supply Chain Challenges (before COVID-19)
MRO market growth changing business Financial capability to models match global demand increase Logistics coordination Finance disturbed at execution level / Shortage & Stock Customer Out Incremental Skills management, high Innovation & New dispersion of the skills Supply program development Compliance & Risk level, Shortage of skilled Chain follow up : regulatory, Workers Heterogeneous traceability, … Manufacturing maturity level of the & Quality supply chain Raw Supplier Material Strong impact of Global sourcing Capacity constraint’s product quality on the to support sells raw material sourcing SC (from Design to (Composite, the manufacturing) advanced materials) COVID impact on Aerospace Supply Chains COVID impact on Aerospace Supply Chains on the short term
Tier 1 delivery performance Common Supply Chain practices impact Tier 2 & 3 actors Deliveries Semester 1 - 2019 vs 2020 350 300 250 200 150 100 50 0 Airbus - A320 Boeing 737 H1 2019 H1 2020
Impact
Source Our Observations
Aerospace Supply Chain Challenges (AFTER COVID-19)
MRO market growth Financing of changing business investments made models Demand visibility before the COVID Logistics coordination crisis & stability Finance disturbed at execution level / Shortage & Stock Customer Out Incremental Skills management, high Innovation & New dispersion of the skills Supply program development Compliance & Risk level, Shortage of skilled Chain follow up : regulatory, Workers Heterogeneous traceability, … Managing of maturity level of the Manufacturing extra stock and supply chain & Quality Supply Chain Raw Supplier disruptions Material Global sourcing Strong impact of Capacity constraint’s to support sells product quality on the Transparency between raw material sourcing SC (from Design to partners to avoid Bullwhip (Composite, the manufacturing) effect (Bi directional) advanced materials) Preparing for the post-covid to be ready for a certain (but unpredictable) re-start Resilience & Supply Chain
Ignorance of uncertainty leads to error, certainty of uncertainty leads to strategy.
Edgar Morin, La méthode Resilience & Supply Chain
Recovery
Resistance
Resilience
Return
Containment
Avoidance Stabilization Resilience & Supply Chain Resilient Aerospace Supply Chain in 8 keys
Risk Management Define a risk management policy for supply chain, 01 Share risks and impacts with partners Adapt contingency plans
Flows clarification & protection Information, material, return & financial flows Define the critical one as bottleneck for each steps of the Supply 02 Chain (from the product definition to the product delivery)
Supply chain design 03 Define an adaptive supply chain to respond to the volatility and unpredictability of demand.
Define strategic Buffer stocks Identify strategic locations on the supply chain to short the supply chain and reduce the bullwhip effect 04
Tactical flexibility 05 Get the possibility to change quickly the production mix Partners management 06 Adapt visibility and create loyalty with partners - focus on customer needs
Supply Chain management with scenarios Accepting uncertainty and managing decision-making tolerance ranges to steer investments in line with demand. 07
Skills & Knowledge management Creating flexibility through versatility of skills 08 Integrate the skills management as strategy levels
8 keys to build a resilient Supply Chain for Aerospace companies The resilience of a supply chain is built within the framework of strategic thinking. It is the result of long-term investments.
Think immediately about the evolution of the supply chain to make it more robust for tomorrow. Questions Resilient tools & Aerospace challenges
Challenge & problem covered Tools / Methodology
• Demand Management • Risk matrix Risk Management 01 • Inventory disruption • Control tower Define a risk management policy for supply chain, • Load and capacity • Demand sensing Share risks and impacts with partners Adapt contingency plans
Flows clarification & protection • Network definition • Value stream Mapping 02 Information, material, return & financial flows • Lead time reduction • Process mining Define the critical one as bottleneck for each steps of • Time to market • Blockchain the Supply Chain • Data management
• Lead time reduction • Demand Driven Model Supply chain design • Priority management 03 define an adaptive supply chain to respond to the volatility • Supply chain strategical plan and unpredictability of demand. • Transformation plan • Digitalization
• Inventory disruption Define strategic buffer stocks • Demand Driven MRP 04 • Demand signals management • Inventory policy Identify the strategical location on the supply chain to • Lead time reduction short the supply chain and reduce the bullwhip effect • Product parameters
• Inventory disruption • Digitalization Tactical flexibility • 05 Priority management • Adaptative MPS – Master Get the possibility to change quickly the production mix • Time to market • Flexible Bill of material • Lead Time reduction Resilient tools & Aerospace challenges
Challenge / Pb covered Tools / Methodology
Partners management • Demand Management • EDI / CRM / SRM 06 adapt visibility and create loyalty with partners - focus on customer • Inventory disruption • Strategic alignment needs • Load and capacity • Cross functional engagement • Quality dependency • Value creation • governance
Supply Chain management with scenarios • Customer centric • S&OP process 07 Accepting uncertainty and managing decision-making tolerance • Systemic approach • Project & Supply chain ranges to steer investments in line with demand • Silo combination • Load & Capacity management
• Trainings & Coaching Skills & Knowledge management • Lead time reduction 08 creating flexibility through versatility of skills • Knowledge management • Coordination • Skills analysis • Priority management • Skills matrix Contact us
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