Case study
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.
Our Impact
16% Of demand re-routed to automated order channels guaranteeing meaningful impact and ROIa ROI
Client challenge
14 months
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.
13%
Of 5-year benefit delivered $44m
Complexities
Reduction in order duplication
Our diagnostic unveiled several problems with the set-up of the existing supply chain:
Demand was unclear
Reduction in direct labour time on transactions 45%
Order levels were artificially high
One size-fits-all procurement – 43% of orders cost more to transact than they were worth materially
12
13
Made with FlippingBook - Online catalogs