Case Study

Improved Delivery Rates of Metallic Forgings for Aerospace Original Equipment Manufacturer

The Challenge

A Fortune 100 Global Aviation Manufacturer was experiencing 40% on-time delivery rates for machined forging parts with little insight as to the cause. We discovered that they were managing critical supply chain data on Excel spreadsheets. As such, they were unable to reconcile data across business units, systems and suppliers. Supply chain stakeholders were routinely purchasing the same forgings using different part numbers. They had low visibility and control over the component parts and raw materials that went into their procured parts and assemblies.

The Solution

They engaged Supply Dynamics to establish end-to-end, multi-tier supply chain visibility, encompassing all assemblies, parts, and raw material suppliers. They wanted to streamline strategic sourcing and procurement processes and better manage external on-time delivery risks for long lead-time materials. We utilized our visibility and analytics platform for multi-tier supply chains, SDX, to systematically forecast and manage forging raw material and component part requirements and proactively gain insight and analytics in several key areas.

We non-destructively mapped a full Bill of Material for 54,613 forging P/Ns to gain full visibility into the materials going into procured parts. We matched part attributes with forging/casting supplier capabilities and created ‘centers of excellence’ for certain casting & forging manufacturing and special processes. We created ‘smart part’ number naming convention for forecasting and established equivalency relationships between parts. We achieved full traceability / connectivity from the purchase P/N on schedule, to the machined P/N, all the way back to the raw material. With a fully mapped Bill of Materials, we achieved better demand forecasting and increased capacity to influence negotiations with distribution and mill sources. Finally, we tracked and enforced collaborative purchasing programs, monitoring whether contract manufacturers bought material at the correct time and in the correct quantity. We reported on subcontractor forging purchase orders and measured critical variances between expected and actual purchases.

The Impact

SDX delivered E2E visibility and control of materials over their supply chain, including visibility into part attributes, P/N characteristics and alternative suppliers, as well as full traceability from finished aircraft assembly back to the raw material. We enabled the Aviation client to forecast and manage material requirements across their entire supply chain. Our data & analytics enabled the client to proactively manage supply chain risk and ensure on-time delivery, insulate their E2E Supply chain from volatile raw material costs and reduce raw material lead-times and speculation. With better data, their mills and distributors could anticipate demand and ensure the right materials were in stock. Business units, vendors and external stakeholders could also leverage common raw material and off-the-shelf component demand from multiple sites and sub-tier suppliers in order to drive efficiency. Finally, our solution provided reports on variances between orders forecasted, placed & shipped, in order to ensure raw materials were not the reason why parts were late.

Platform Strategies In Distributed Manufacturing Supply Chains