Supply Chain Turnaround for a Rotary Wing Aircraft Manufacturing Company

Supply Chain Turnaround Turnaround for a Rotary Wing Aircraft Manufacturing Company

THE CLIENT

A leading rotary wing aircraft manufacturing company based in the UK, facing challenges in its supply chain management.

THE CHALLENGE

Our Enterprise Health Check revealed significant supplier issues across the supply chain, including poor supplier performance, lack of supplier diversity, and strained supplier relationships.

ASSESSMENT

Lead Measures

Supplier Performance Management Initiatives: Only 60% of suppliers met performance targets.
Supplier Audits: Inconsistent audits led to 25% non-compliance in quality standards.
Supplier Development Programs: 30% of suppliers showed no improvement post-training.
Supplier Diversification Initiatives: Only 10% increase in supplier diversity over two years.
Supplier Scouting Activities: 20% success rate in identifying new, qualified suppliers.
Supplier Risk Assessments: Lack of assessments resulted in three major supply chain disruptions.

Lag Measures

Supplier Performance Scores: Average score of 2.5 out of 5 across all suppliers.
Supply Chain Disruption Incidents: Six incidents in the past year, causing delays.
Delivery Lead Time: Average lead time increased by 15% over the previous year.
Supplier Diversity: Only 5% of suppliers from diverse backgrounds.
Supplier Satisfaction Scores: Average satisfaction score of 3 out of 5.
Supply Chain Disruption Incidents: Repeated incidents leading to a 10% increase in costs.
Delivery Lead Time: Consistent delays, impacting customer satisfaction by 20%.

SOLUTIONS

Enhance Supplier Performance Management

Set Clear Performance Metrics: Established specific, measurable targets for all suppliers.
Implement Regular Audits: Conducted quarterly audits to ensure compliance and quality.
Provide Performance Feedback: Created a feedback loop with suppliers for continuous improvement.

Develop Supplier Relationships

Initiate Joint Planning Sessions: Organized monthly planning meetings with key suppliers.
Invest in Relationship Building: Facilitated workshops and collaboration platforms.
Monitor Relationship Health: Implemented regular satisfaction surveys with suppliers.

Diversify Supplier Base

Identify New Suppliers: Conducted scouting activities in untapped markets.
Evaluate and Onboard: Created a streamlined process for evaluating and onboarding new suppliers.
Monitor Diversification Progress: Tracked diversity metrics and made ongoing adjustments.

Improve Risk Management

Conduct Comprehensive Assessments: Implemented regular risk assessments for all suppliers.
Create Risk Mitigation Plans: Developed tailored plans for high-risk suppliers.
Monitor and Update Plans: Regularly reviewed and updated risk plans to reflect.

Increase Supplier Satisfaction

Implement Satisfaction Surveys: Conducted bi-annual satisfaction surveys with suppliers.
Address Feedback: Created action plans to address specific feedback and concerns.
Foster Collaboration: Encouraged open communication and collaboration through regular meetings.

RESULTS

Improved Supplier Performance Scores: By 25%, through enhanced performance management and audits.
Reduced Supply Chain Disruptions: By 40%, through improved risk management and supplier diversification.
Decreased Delivery Lead Time: By 30%, through strengthened supplier relationships and joint planning.
Increased Supplier Diversity: By 20%, through targeted scouting activities.
Enhanced Supplier Satisfaction Scores: By 15%, through regular feedback and collaboration.

Conclusion

The case study demonstrates how a strategic approach to supplier management can transform a critical business function. By addressing specific challenges and implementing targeted solutions, the rotary wing aircraft manufacturing company was able to enhance its supply chain performance, reduce risks, and position itself for long-term success. The experience underscores the importance of the Enterprise Health Check assessment, data-driven insights, and tailored strategies in achieving operational excellence.

Note: The above values are estimated variables and are subject to change depending on the scope, volume, complexity, and unique circumstances of each client.