Procurement Competitiveness
large-scale
Context & objectives
The CPO requested to launch a large-scale “Competitiveness Project” for procurement RC reduction on all programs
- New X-commodity, X-program approach
- Win-win strategy with suppliers based on Open book approach
Key work packages from different programs have been screened internally or in an Open book approach to identify negotiation levers and cost reduction opportunities
- Design-To-Cost
- Manufacturing-To-Cost
- Footprint optimization
- Material cost optimization
The work packages cover all commodities
- Aerostructure work packages
- Material: Aluminum, Composite, …
- Cabin: floor to floor, galleys, …
- Mechanical System: actuators, manifold, pump …
- Avionics Systems: electronics, PCB, …
- Complex Systems: Landing gear, nacelles, …
Results
Tangible results at Company level :
- 46 sprints, covering x Md$, to analyze, optimize and renegotiate Work-Packages or Supplier Cost Bases
- x00M€ yearly savings vs baseline on the horizon of 3 years
A robust methodology applied to all sprints for an exhaustive analysis
- Detailed costing
- X-program benchmark
- Selection rates analysis on customized products
- Supply value chain optimization (fragmentation, direct sourcing to Tier-N, supplier make or buy policy review)
- Simulation of gross margin linefit + aftersales
- DtC and MtC portfolio management
- Material consumption optimization
A full leverage of company data for better knowledge of work-packages and more relevant corresponding strategies
A sustainable transformation of Procurement ways of working, emphasizing multi-functional collaboration for better negotiation strategies
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