Supply Chain

Supply Chain Management of finished parts

Subcontractor service

Benefits of our single global service provider model

Where customers’ supply chain policy requires the selection of subcontractors and the management of the subcontractor performance they can conclude that managing this activity is not their core competence and wish to outsource these activities to a 3rd party. thyssenkrupp Aerospace has many years’ experience in delivering this service which has the following key characteristics:

All the features of material service provision but with the additional characteristics:

  • Managing the logistics of supply of materials and components to and from the supply chain
  • Management of raw material flow to sub-contractors
  • Control the flow of engineering information to sub-contractors
  • Management of First Article Inspection
  • Management of production manufacturing including special processes
  • Coordination of parts manufacturer deliveries
  • Perform receiving inspection as agreed with customer
  • Storage of inventory
  • Kitting and delivery on a just in time basis to the customer’s point of use

Benefits of this approach

  • Demand for raw material is calculated using customer demand for finished parts
  • Raw material supply to all users at the same base price
  • Special processes contracted at the same base price for all users
  • Providing visibility of materials and components supply across the entire supply chain.
  • The customer can focus on their core business.
  • The customer has full visibility but without the need to manage every transaction.
  • The supply chain is motivated to work together for the customer’s benefit. These benefits will drive lower costs and increase security of supply.

Challenges:

• Busy workflow, more material in the supply chain, higher costs and exposed to potential errors and communication gaps.

• Multiple service centers resulting excess inventory system-wide

• False demands and supply shortages

• Lack of visibility and coordination

• Lack of flexibility to quickly adapt to changes in demand (up or down)

• Inefficient buy to fly ratio

Coordinated supply chain:

Optimized workflow, leveraged infrastructure, data aggregation and transparency