SESSION 3:

Collaborative Supply Chain

Presented byMr. F. R. Singhvi

Joint Managing Director,Sansera Engineering Private Limited,

Bangalore, India.

SESSION 3:

Collaborative Supply Chain

Challenges for Supply Chain: Mid-to long-term

SESSION 3:

Collaborative Supply Chain

Collaboration

Competitiveness & Industrialization

Competitiveness Supplier Collaboration

Global challenges Local challenges

Ramp up

Cost

CapacityMaturity

SESSION 3:

Collaborative Supply Chain

Global Crisis

Business Recession

Falling PricesProfitability Challenged

Supply chain objectives

Core Competencies

Innovation, quality product/

service

adjust to customer demand

reduce/share risks with better

capacity planning and utilisation

Supply chain

Collaboration with network of companies

Collaboration between

departments in a company

Link between Manufacture and

sales, cost and price

Flexible and integrated approach

Supply chain current trends

collaborative working of cross functional teams

Common vision

Co-create value

Sustainable platform to

match costs to sales price

Performance measurements

Continuous improvements

stabilize, optimise, transform

SESSION 3:

Collaborative Supply Chain

Collaborative working

Finance and supply chain

Inventory cost, logistic cost, investment plans, taxes and laws in different locations, product liability, financial stability, integration of KPI’s of finance and supply chain

Effective Supply chain

Remove unrealistic

expectation from each other

Relation to be strategic to create value

for both

Assign responsibility

tasks and targets

Define common vision team to

jointly develop plan for implementation

Test for successful Supply Chain

Aligned to business

Delivering what is needed

Operationally excellent streamlining processes and managing technologies

efficiently

Ensure realistic, effective, sustainable cost cutting measures

Creation of value rather than just cost reduction

Providing real value

Accountability and effective Governance

Aerospace Supply Chain

SESSION 3:

Collaborative Supply Chain

Key considerations by Aerospace Global OEMs for selecting their suppliers

Nine core parameters that govern thesupplier selection

SESSION 3:

Collaborative Supply Chain

Broad supplier Selection

parameters

MaterialHandling Capability

Efficient production processes Change

control system

Purchase & Vendor

Managementtechniques

Aerospace & Defence experience

Management Intent

and strong vision

Quality systems/

certifications

Training and Human

Resource

IT System and Process

Aerospace Procurement Trend

SESSION 3:

Collaborative Supply Chain

Raw Materials

Make-to-print Parts and Assemblies

Large-scale Integration

Platform Assembly

Value-added Parts and Assemblies

Today

1. Fewer, but still many direct partners

2. Limited role for “integrators”

Past

1. Many direct partners2. No real role for

“integrators”3. Design to print of parts

and sub-assemblies

1. Far Fewer large direct risk sharing partners with whom to build strong ties and who can share capital expenditure, development costs and risk

2. A real global extended enterprise3. Extensive role for “integrators”

TIER 1RSP

System Integrators

System Integrators

System Integrators

The “New”

Positioning of Indian

Suppliers

Major aerospace global players and their position in the supply chain

SESSION 3:

Collaborative Supply Chain

Aircraft owners

Tier 1Systems Integration

OEMsCivil Aircraft and Major Component Manufacturers

Tier 2 Sub-assembly manufacture

Tier 3 Make-to-print components

Tier 4 Materials and processes

Sub-component and parts manufacture

Engine manufacturers

Rolls-Royce, GE, P&W, CFMI, IAE, Honeywell

Aircraft manufacturers

Boeing, Airbus, Bombardier, Embraer, Gulfstream, Cessna, Dassault

Engines/Actuators

Aero-structures

Wheels, brakes, and landing gear

Flight control

and avionics

Interiors

Raw materials suppliers, casting and foundry

Trac, Gardner, MB Aerospace, Shimtech, Monogram, Panasonic, Parker, PFW,

Mitsubishi, Kidde, PPG, FujiHamilton Sundstrand,

Doncasters, Firth Rixson,

PCC

GKN, Spirit, Aernnova,Triumph,

Latecoere, Alenia Aernautica

New build only

Messier-Dowty, Bugatti, Meggitt

Goodrich, SafranRockwell, Esterline

Zodiac, AIM, Cobham, DiehlAvio (now GE),

Volvo (now GKN)MTU, MHI, Eaton, Moog, Nexcelle,

AVIC Principal component manufacturers

Supply chain management and tooling manufacturer

Pattonair, Wesco, MB AerospaceBrookhouse

Commercial airlines and Freight carriers

Maintenance, Repair and Overhaul

TransDigm, AAR Corp, Heico, Aviation Technical Services, Timco Aviation Services,

StandardAero

Aircraft Leasors and/or Management Companies

Target area for ACMA Companies

Manufacturers - Alcoa, Kaiser, Aubert & Duval. Distributors - Thyssenkrupp

Currently presence of Indian private players is primarily limited to Tier-3 manufacturing

SESSION 3:

Collaborative Supply Chain

Castings, forgings

Aircraft and subsystem design

Avionics, critical components design

Simulation and testing services

Component design, IT solutions

Design Engineering and IT solutions

Power, electronic components, cables, wiring

Sheet metal components

Aircraft interior: seats, windows, upholstery

Component manufacture(Tier-3)

Hydraulic systems Electrical systemsAvionics & flight system components

Component manufacture(Tier-2)

Engine manufacture

Avionics & flight control systems

Wing & landing gear assembly

Subsystems manufacture(Tier-1)

Full aircraft assembly

Aircraft testing and validation

Fuselage, empennage assembly

Aircraft assembly

dominated

Thank you!