Case Study

Hidden Value Exposed: Supply Chain Illumination at Fortune 100 Aerospace Systems Manufacturer

The Challenge

A global leader in Aerospace systems manufacturing lacked the data to aggregate internal and external demand for materials. They faced rising material costs, poor on-time delivery rates for long lead-time parts and materials, and difficulty negotiating optimal service levels with their suppliers. They also had little visibility into their sources of supply. They needed better supply chain data to establish end-to-end, multi-tier supply chain visibility encompassing all assemblies, parts, and raw materials.

The Solution

The Aerospace customer contracted Supply Dynamics to map the material requirements of their global supply network.

Part Attribute Characterization (PAC) would be used to get their data house in order and achieve uniform naming conventions and data taxonomies.

SDX, Supply Dynamics supply chain visibility and analytics SaaS platform would be used to facilitate supplier participation in data validation, and to analyze and report aggregated material demand and risk… from the purchased Part Number, to the machined Part Number, and all the way down to the purchased raw material, for 5 material categories: machined parts, sheet metal, fabrications, castings and forgings.

 

The Impact

Using PAC, the attributes of 10,000 part numbers were characterized along with the mapping of their respective Bill of Materials.  The SDX platform kept the data up-to-date and provided comprehensive visibility into all materials going into their procured parts. They now had an accurate picture of the material requirements of their supply network, enabling them to better forecast demand and influence negotiations with distribution and mill sources. Business units, alliance partners, and external stakeholders could now better collaborate, driving efficiencies by leveraging common raw material and off-the-shelf component demand from multiple sites and sub-tier suppliers. With data up to date and accurate, hidden value was identified:  the customer could negotiate better service levels from suppliers, mills and distributors. Mills and Distributors could, in turn, better anticipate demand and ensure the right materials were in stock, reducing raw material lead-times and speculation. Better visibility also provided enhanced insulation from volatile raw material costs. Finally, SDX enabled the customer to leverage their real-time data to proactively manage supply chain risk and ensure on-time delivery.

Platform Strategies In Distributed Manufacturing Supply Chains