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The defense and aerospace sectors are currently going through profound and longstanding transformations. The aerospace industry is still in rapid growth mode driven by the demand of emerging countries and new low-consumption-aircrafts. The defense industry, however, is the victim of a decrease in state demand linked in particular to the reduction of European countries’ defense budgets. This calls into question the global economic model of big defense projects that drive research and innovation.

The European space program has been shaken by the entry of private actors into the market (SpaceX etc.) that push it towards changing its business model and industrial structure.

Challenges

In general, the competitive pressure, the arrival of new entrants, the transfer of technologies and the importance of local plants make it mandatory to enforce a globalized supply chain, collaboration within the company and with suppliers as well as end to end program management along the product lifecycle.

In the aerospace industry, the entire chain, from suppliers to manufacturers, should not only guarantee the ramp-up of the supply chain but also the conception of new models that are cheaper to use.

How we can help

We assist our clients in their transformation programs, from the identification of opportunities to the implementation of all operational performance levers, notably:

  • Definition of plants and evolution of the operational organization to anticipate or face business model issues, growth, PMI, and harmonization of functioning methods
  • Structuration of technological roadmaps and improving cooperative research and development program management
  • Design-to-value on programs between partners
  • Supply chain digitalization and collaboration with suppliers along the entire product life cycle
  • Optimization of the upstream supply chain: sourcing and offset strategy, cycle reduction, inventory and WIP reduction, master supplier economic performance, adaptability to demand variations, global supply chain control tower
  • Maintain optimal operational conditions (reduction of lead times, planning and forecasting of MRO flows, stock optimization, etc.)
  • Optimization of spare parts distribution (forecasts, sourcing and distribution networks, stock policies)

Aerospace and defense case studies

Digital supply chain

Aerospace and defence

Digital supply chain

Our client is a major player of the French aerospace and defence industry with worldwide coverage.
The company was looking to extend its internal Industry 4.0 model to its supply chain by implementing concrete win-win collaborations with selected suppliers and leveraging the potential for digital transformation in the industry.

Our role

  • Assess digital continuity between the client and five selected suppliers through on-site audit (from both sides)
  • Identify key improvement opportunities per supplier and client business units, and highlight quick-wins
  • Develop project plans for improvement actions
  • Bring digital expertise in operations to propose suitable solution and provide tangible benefits to the client and its suppliers
  • Align all roadmaps

Results

  • Mapping of the exchanges between the client and its suppliers on four specific areas: purchasing, engineering, industry and supply chain
  • Roll-out kit with a clear methodology to “industrialise” the deployment of the approach
  • Proposal of process and digital improvement areas
  • Action plan and associated ROI to be implemented on a three-year roadmap

Implementation approach for category management

Aerospace and defence

Implementation approach for category management

Safran Electrical & Power is a leading global player in the design, production and installation of electrical wiring systems in the aerospace, space and defence markets.
The company wanted to define a target purchasing policy with the implementation of a Category Management approach.
The categories covered included; bearings, electronic cards and machine parts.

Our role

  • Identify potential synergies by category
  • Identify the action plans to be implemented with a category leader
  • Conduct a segmented supplier analysis panel

Results

  • Defined a common segmentation by category
  • Consolidated spend map by segment
  • Identified supplier know-how by segment and defined a target supplier panel
  • Developed an action plan by entity and the associated business case

Supply quality management

Defence industry

Supply quality management

Nexter Systems is part of Nexter, a major player of the defence industry owned by the French state. The company develops and produces military devices and engines for ground, air/ground, naval and air/naval combat.

Nexter is facing a critical activity ramp-up with material delivery doubling every year while time to market is reduced by more than 50%. Nexter has major quality issues and wants to have a clear vision of current processes on supply quality management and define a short and mid-term roadmap to sustainably improve supply quality.

Our role

  • Facilitate internal (Nexter) and external (suppliers) interviews
  • Perform quantitative analysis to support the diagnosis
  • Benchmark Nexter processes with other industry leaders
  • Align Nexter organisation on diagnosis and priority actions
  • Propose short-term action plan and mid-term roadmap

Results

  • Identified and benchmarked gaps in Nexter quality processes against best practice and across the entire product lifecycle
  • Defined and prioritised 20 key actions to support quality improvement
  • Designed and built a detailed roadmap to 2022 to support mid-term benefits
  • Delivered a project charter for the top five actions to support short-term benefits

Digital procurement roadmap

European leader in naval defence

Digital procurement roadmap

Naval Group is an international high-tech company and one of the few global leaders in defence naval systems. The group reports revenues of €3.6 billion and has a workforce of 14,670 employees.

The company wanted support in the frame of a digital paradigm shift of its sourcing and procurement function. The main business objective was to enhance data flows inside the sourcing and procurement function, to increase collaboration between buyers and key stakeholders to support globalisation of the function.

Our role

  • Conduct a market analysis on sourcing and procurement digital solutions
  • Identify potential most competitive solution providers based on internal functional and security requirements and external benchmarks from different industries
  • Assess pre-selected vendors through detailed demonstrations of their solutions
  • Define the business case of the digital transformation
  • Design the implementation roadmap

Results

  • Identified and pre-selected five solution providers from a plethora of potential options in the market
  • Selected three vendors out of the five shortlisted by the client to take forward to phase
  • Five key functional areas defined to meet 100% of client requirements
  • Based on the recommended implementation roadmap which the Management Board approved, the RFP phase was launched

Procurement and strategy roadmap

Airport Group

Procurement and strategy roadmap

The Manchester Airports Group Plc is the largest UK-owned airport operator. Its four airports – Stansted, Bournemouth, East Midlands and Manchester serve around 42 million passengers every year.

It had an opportunity for future expansion which drove a need to become ‘world class’. The procurement function had limited presence in the business which needed enhancement. The company needed support to determine the function’s current (‘as is’) and required (‘to be’) skills and capabilities.

Our Role

  • Establish the ‘as-is’ and ‘to-be’ capabilities through workshops, data analysis and input from stakeholders
  • Review the functional structure and clarity of procurement’s role
  • Identify key milestones, timings and category approach
  • Generate a one-page blueprint to support implementation

Results

  • Defined the business case with benefits of £25m over five years
  • Clarity on procurement’s role in the business
  • Identified category management opportunities
  • Identified soft benefits to procurement and the business