integrated supply chain mission: partnering for growth
TRANSCRIPT
Copyright © 2014 Raytheon Company. All rights reserved.
Customer Success Is Our Mission is a registered trademark of Raytheon Company.
Integrated Supply Chain
Mission:
Partnering
For Growth
Janet Groebe
Sr. Director
IDS Integrated Supply Chain
September 23, 2014
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Who We Are
■ Raytheon Company is a technology
and innovation leader specializing in
defense, security and civil markets
throughout the world.
■ 2013 net sales: $24 billion
■ 63,000 employees worldwide
■ Headquarters:
Waltham, Massachusetts
A global leader in technology and innovation
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The World and Climate Have Changed
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New Challenges…
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Cyber Security Counterfeits
Conflict Minerals
tin 50
Sn
118.71
tantalum 73
Ta
180.95
tungsten 74
W
183.84
gold 79
Au
196.97
Chinese Counterfeit Electronics ‘Flood’ U.S. Military Aircraft: Senate Report
May 21, 2013 – 08:43 p.m. | by Michael Mathes, Agence France-Presse
DoD Combats Counterfeit Parts Threat By Jim Garamone American Forces Press Service
DARPA Targets Counterfeit Electronics Defense Advanced Research Projects Agency’s SHIELD program
aims to develop a method to authenticate electronic components.
100%?
# of APT attacks at Raytheon
# of APT attacks within supply base
80%
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…as well as new opportunities.
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Shared Passion for Warfighter Support
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New approaches are needed to succeed…
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26% 2013 INTERNATIONAL SALES
50% INTERNATIONAL SALES
WITHIN 5 YEARS
“We are not only competing against companies, we are competing against countries … That is
significantly different my friends …We are going to have to do things differently as an
organization to be able to leverage great relationships and reputation, proven performance,
being viewed by our domestic customers as a great go-to partner. Leveraging that, to afford us
the opportunity to have a fair shake at competitions in an international marketplace.”
– John D. Harris II, Vice President Business Development Raytheon Company,
Chief Executive Officer Raytheon International, Inc.
Meeting Our Customer Priorities
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GOALS
AFFORDABILITY
COST OF QUALITY
REDUCE SUPPLY
CHAIN RISK
HOW WE ADDRESS THESE GOALS
Leveraging the full weight of our $23 billion company
to maximize buying power and manage supplier
performance.
Collaborating with our suppliers and their sub tiers to
sign long term agreements that create affordability
by:
Reducing waste
Engineering changes to reduce cost and
improve manufacturability (better quality lower
cost)
R6S
Allowing sub tiers to buy from our Corporate
Agreements
Using our ESPX Process to drive the above
Rationalize The Supply Base
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Moving Towards A Common Set Of Suppliers Across All Of Our Businesses
Supplier Excellence Program - Overview
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• Recognizing and
rewarding top
performers at
Raytheon event
• Driving behavior
for accountability
and improved
performance
• RTN and BU executive
engagements with
principal and key
suppliers
• Broad communication
of excellence program
and expectations to
Raytheon and
Suppliers
• Performance
measures for each
supply base segment
• Adds new qualitative
measures (KPM and
SEAC)
• Builds on existing
quality and delivery
performance measures
• Replaces
Segmentation Supplier Excellence
Scorecard
Relationship
Management and
Communication
Recognition
Raytheon Supplier
Excellence Program
Principal Suppliers
Key Suppliers
SEAC Preferred Suppliers
Core Suppliers
Supplier Advisory Council
Execute SAC as a pilot in 2014, with the intention of shaping
the operating model and success metrics together with its
members – Roles and responsibilities
– Vision, mission and charter
– Commitment and communication
– Prioritization targeted opportunities
Target 8 -12 executives from the supply base across the
broad representative IDS supplier spectrum
Staff internally with ISC, SQ communications and other
functions after initial working session
Aligned focus to enterprise supplier recognition and
communication project
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Recent Program Case Study
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Objective:
Work together to achieve target pricing
while not compromising the technical
performance of the system
Approach:
• Multi-prong analysis of all potential cost
opportunities, including technical,
manufacturing processes, material
procurement and contracting methods
• Early engineering engagements
• Cross company collaboration
Results:
Supplier partnership helped enable the win
Proven Performance
o Small Businesses are Many of the “Best Performers” on Raytheon Programs
o Nearly 50% of our Procurements are with Small Businesses
o Competitive Discriminator for Franchise Proposals
o Demonstrated Support in keeping our Programs Sold
o Customer Recognized as Top Performers
o Willing to Invest Through Innovative Solutions
Proven Capabilities
The Opportunity for Small Business
Small businesses won 68% of the IDS Raytheon Supplier Excellence Awards in 2013.
Investing in a Bright Future
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“… If our supplier partners aren’t successful, we’re not going to
be successful.” Dr. Tom Kennedy
Raytheon Chief Executive Officer and Chairman of the Board
Thank You
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