Case Study
We partnered with a specialist airline operator in the process of carrying out critical fleet maintenance enabling them to increase availability, profitability and help secure the future of an existing contract. Enabling an integrated E2E supply chain Defence Prime
We worked to understand true demand across a range of part categories and developed appropriate procurement and supply chain approaches to best meet the needs of each.
Client situation
Complications
What we did (ongoing)
Our diagnostic unveiled several problems with the set-up of the existing supply chain:
We worked across three key areas to transform the supply chain:
The client team manage the purchase of spare parts and repairs of high value items for in-service aircraft and needed support to improve performance.
We improved the teams’ forecasting and planning activity, using fleet maintenance data to provide a single view of aggregated demand. This enabled the teams to have better visibility of upcoming demand and prioritise activity accordingly. We segmented material with agreed appropriate procurement routes, and automated the procurement of commodity parts, with high value parts passing through a simplified process. We mapped the E2E process, agreed cross-functional owners and set up a clear governance structure with agreed terms of reference and success criteria to drive performance. This ensured supply chain and procurement teams are now aligned in incentives, KPIs and behaviours.
Demand was unclear
Order levels were artificially high
One size-fits-all procurement – 43% of orders cost more to transact than they were worth materially
$44m Of 5-year benefit delivered
14 months
“The work Newton has done has been fantastic - from everyone who’s been involved, thank you, it’s been fantastic” Director, Service Delivery Organisation
16% Of demand re-routed to automated order channels
13% Reduction in order duplication
45% Reduction in direct labour time on transactions
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