Why? Three Drivers of Change in Supply Chain Management: Cost - PDF document

The Aerospace & Defense Forum Orange County Chapter January 7, 2016 Aggregate Demand Aggregate Demand Mode Mode del del Why? • Three Drivers of Change in Supply Chain Management: • Cost Consciousness • Production Rate • Technology • New Supplier Considerations: • Cost Competitive • Cannot be additional risk • Bring something new to the table: • Technology • Capacity Aggregate Demand Mode Aggregate Demand Mode del del What is it? • Information Logistics Program • What is needed, where it is needed, when it is needed. • Sourcing Process • Production Sustainment • Virtual traveler/router through entire supply chain versus physical traveler/router within your shop only. • Collaborative Supply Chain • New business opportunities • Virtual Vertically Integrated Supply Chain 1

The Aerospace & Defense Forum Orange County Chapter January 7, 2016 Aggregate Demand Mode Aggregate Demand Mode del del The Benefits • More Competitive • Cost • Lower cost of goods sold • Take the cost out of cost not margin. Economy of scale. • Performance scoring system • Quality • Better information upstream minimizes issues down stream. • Performance scoring system • Delivery • Better upstream/downstream situational awareness allows early resolution of shipping issues. • Performance scoring system • More than can be achieved individually. • Lower selling costs • Allows companies to focus core competencies. Aggregate Demand Mode Aggregate Demand Mode del del How does it work? • Technical • Cloud based software • Annual subscription • Uses standard desktop computer with internet connection • Business System • RFQ Module • ERP/Order Management Module • Quality Module • Engineering Module • Logistics Module • Communications Module 2

The Aerospace & Defense Forum Orange County Chapter January 7, 2016 Aggregate Demand Mode Aggregate Demand Mode del del What is strategy to implement? • Early Adopter • Focus Group for ADM Software development • A – Team for deployment • High visibility at Boeing and industry • Target for initial proof of concept Aggregate Demand Mode Aggregate Demand Mode del del What is next step? • Assign a ASDP Champion 3