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LEVERAGING SUPPLIERS RELATIONS

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Description

Ecole: ESC TOULOUSE
Entreprise: aucune
Niveau: BAC + 6
CONTENTS
General Introduction: Supply Chain Management
􀂃 Main Aspects and Characteristics of the Supply Chain
• Material Flow
• Information Flow
• Buyer-Sellers Relations
􀂃 The Organization Goals Definition
• Supply Chain Planning
• Supply Chain Execution
• Strategic Procurement
Part I: Supplier Relationship Management, the extension of Supply Chain
Management
1. The SRM concept
1.1 The Technical enablers
1.2 Customer service and support: SRM support functionalities
1.3 SRM and Purchase
1.4 SRM and Marketing
1.5 Conclusion
2. Concrete Example: Boeing and the evolution of the supplier role
2.1 Boeings transformation into a large parts and systems integrator
2.2 The 787 Dreamline program: the elevation of suppliers status from provides to partners
2.3 The new supplier model: linking the supply chain
Part II: E-commerce exchanges
1. The three e-exchange models
1.1 Public e-marketplaces
1.2 Industry-sponsored marketplaces or consortia
1.3 Private exchanges
2. Industry-sponsored marketplace infrastructure
2.1 Capital investment
2.2 Participant volume
2.3 Industry- sponsored marketplace functionnalities
3. Private exchanges structure and functionalities
3.1 Private exchanges structure
3.2 Private exchange functionality
3.3 Private exchange value creation: the Daimler Chrysler supply chain network example
4. Choosing between Industry sponsored marketplace and private exchange
4.1 Sustainability of Industry-sponsored marketplaces and private exchanges
4.2 Identification of the processes to be adressed
4.3 Value metrics to be adressed
4.4 Comparison between the development and management costs
4.5 The best practices:
• Change process: the compulsory partnership
• A solid business model
• Adding value beyond the tools
• Customer service
• Focusing on the value proposition
• Review of the internal processes
5. Concrete example: the aerospace exchanges solutions
5.1 Exostar, the BAE Systems, Boeing, Lockheed Martin and Raytheon emarketplace
5.2 MyAicraft.com
5.3 Exostar and Myaircraft potential risks
5.4 The GE Aircraft Engines position toward Exostar
Part III Quality and e-commerce, control and enhancement of the supplier
performances
1. Why quality is such a crucial stake?
1.1 The certification process: a quality communication mean
1.2 The ISO norms in the industry
1.3 Implementation of ISO 9001:2000
1.4 Certification, a prerequisite for B2B e-commerce
• Conformity assessment and assurance in e-commerce
• ISO 9000 certification and Internet e-commerce
• Ensuring online security and authencity
2. The aerospace quality strategy
2.1 The AS9000 standard
2.2 AS9100: the first international quality systems aerospace standard
2.3 Industry managed processes: demonstration of the supplier compliance
2.4 The Quality System Audits: the aerospace industry control other party processes
2.5 The Oasis database: a new aerospace procurement tool?

Informations

Published by
Published 03 January 2006
Reads 73
Language English
Document size 2 MB
LABIDI Myriam
Date de création : Date de dépôt : Niveau :
LEVERAGING SUPPLIERS RELATIONS
01.12.2005 03.01.2006 BAC + 6
 
 
 LEVERAGING SUPPLIERS RELATIONS THROUGH THE USE OF INFORMATION AND COMMUNICATION TECHNOLOGIES: The evolution of the supplier role in the aerospace and automotive industry
        Airbus tutor: Miss Celine Dedieu ESC Toulouse tutor: Mr Philippe Malaval
 
  
  
  
Airbus Trainee: Labidi Myriam Written in November 2005
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CONTENTS  General Introduction: Supply Chain Management  !Main Aspects and Characteristics of the Supply Chain €Material Flow €Information Flow €Buyer-Sellers Relations  !The Organization Goals Definition €Supply Chain Planning €Supply Chain Execution €Strategic Procurement  Part I: Supplier Relationship Management, the extension of Supply Chain Management  1. The SRM concept  1.1 The Technical enablers 1.2 Customer service and support: SRM support functionalities 1.3 SRM and Purchase 1.4 SRM and Marketing 1.5 Conclusion  2.Concrete Example: Boeing and the evolution of the supplier role  2.1 Boeings transformation into a large parts and systems integrator 2.2 The 787 Dreamliner program: the elevation of suppliers status from provides to partners 2.3 The new supplier model: linking the supply chain  Part II: E-commerce exchanges  1. The three e-exchange models  1.1 Public e-marketplaces 1.2 Industry-sponsored marketplaces or consortia 1.3Private exchanges  2. Industry-sponsored marketplace infrastructure  2.1 Capital investment 2.2Participant volume 2.3Industry- sponsored marketplace functionnalities  
 
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3. Private exchanges structure and functionalities  3.1 Private exchanges structure 3.2 Private exchange functionality 3.3 Private exchange value creation: the Daimler Chrysler supply chain network example  4. Choosing between Industry sponsored marketplace and private exchange  4.1 Sustainability of Industry-sponsored marketplaces and private exchanges 4.2 Identification of the processes to be adressed 4.3 Value metrics to be adressed 4.4 Comparison between the development and management costs 4.5 The best practices: €Change process: the compulsory partnership €A solid business model €Adding value beyond the tools €Customer service €Focusing on the value proposition €Review of the internal processes  5. Concrete example: the aerospace exchanges solutions  5.1 Exostar, the BAE Systems, Boeing, Lockheed Martin and Raytheon emarketplace 5.2 MyAicraft.com 5.3 Exostar and Myaircraft potential risks 5.4 The GE Aircraft Engines position toward Exostar  Part III Quality and e-commerce, control and enhancement of the supplier performances  1. Why quality is such a crucial stake?  1.1 The certification process: a quality communication mean 1.2 The ISO norms in the industry 1.3 Implementation of ISO 9001:2000 1.4 Certification, a prerequisite for B2B e-commerce €Conformity assessment and assurance in e-commerce €ISO 9000 certification and Internet e-commerce €Ensuring online security and authencity  2. The aerospace quality strategy 2.1 The AS9000 standard 2.2AS9100: the first international quality systems aerospace standard 2.3Industry managed processes: demonstration of the supplier compliance 2.4The Quality System Audits: the aerospace industry control other party processes 2.5The Oasis database: a new aerospace procurement tool? 
 
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TRAINING PERIOD OVERVIEW AND EXECUTIVE SUMMARY
 As an Airbus trainee I had the opportunity to work for theProcurement Quality International (PQI) section of Central Airbus Entity. This subsection of Procurement mainly deals with quality issues. To that purpose, internal work must be done with the Airbus Quality Responsible as well as external work with the Supplier Quality Responsible.  This training period gave me the chance to understand how quality control is conducted in the aerospace industry. In addition to this overview, I get a real insight of the aerospace OEMs and supplier needs with regard to quality issues. I also get a deep knowledge of ICT tools deployment in a large company.   I was mainly in charge of the relationships with suppliers concerning the use of a collaborative platform. To that regard, I did some administrative work, meaning that I assured full completion of the registration process by the supplier. I also produce some communication documents, which were helping suppliers to understand the outputs and inputs of the collaborative platform. It was also needed to give some technical guidance through mail or phone calls. As communication was also conducted among Airbus employees, I was in charge of producing communication documents for the internal usage.   Related to the registration process some reporting was done especially during the PQI meetings. As a matter of fact, some key quality indicators were provided. They allow the measuring of the adoption level of the collaborative platform by the suppliers. These indicators also help the team to take corrective actions or to enhance the best actions.  All the work described above allows the cleaning up of the suppliers repository database used by the Airbus employees. I also take part into the collaborative work done by one Airbus responsible with the European Aerospace Quality Group.  With regard to technical issues, I worked in collaboration with the support staff of the collaborative platform. I was in charge of explaining the difficulties encountered by the external and internal users of the platform. To that purpose written reports explained the users needs and even propose other solutions.   In addition to the collaborative work done with the support staff, we also had to coordinate our efforts with the other departments. The holding of different meetings ensured that we were following the same road.  Considering the main tasks conducted during my training period, Ive decided to write over the link between the transformation of the supplier role and the use of Information and Communication Technologies. Throughout this paper we try to demonstrate the shift in the roles of suppliers and how the tools provided by the Information and Communication Technologies (ICTs) enhance the collaboration in the aerospace and automotive industry. Considering the similarities between the automotive and aerospace supply chain, we decided to illustrate theory with vivid examples taken from both industries. In order to some useful benchmarking, we also decided to focus on the Boeing practice. We most particularly examine the e-tools, which are used by the Airbus competitor.
 
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 The main goal of this paper is to convince the readers that concepts such as supply chain management and supplier relationship management are not useless theories served by costly and sophisticated e-tools. We try to demonstrate that the e-tools available can create value when implemented in the best manner.  Considering the new face of competition, the relationship with suppliers is no longer the same indeed. We would like to prove that the combination of the top management vision and the use of the most appropriate e-tools alleviate the supplier relationship to a real and highly valuable collaboration. We even conclude that firms, which can consider themselves as networks are adopting the extended enterprise business model.  We begin to introduce the discussion by explaining how supply chain management goes beyond production and logistics functions. To that purpose, we try to underline how supply chain management leads to a value chain approach. Then, we examine how Suppliers Relationship Management e- tools enabled a better collaboration with the best suppliers.  The second part of this paper focus on the two main models of e-commerce exchanges, which are used in both automotive and aerospace industry. In order to do that, we detail the structure and functionalities of both exchanges. Then, we decided to explain the best practices in the case of e-commerce exchanges adoption and implementation.  As quality is a key issue for both OEMs and suppliers in the aerospace industry, we decided to explain the industry approach of these issues and and its link with ICTs.                        
 
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GLOSSARY OF TERMS
 AECMA: European Association of Aerospace Industries EDI: ElectronicDataInterchange, the transfer of data between different companies using networks, such as the Internet. As more and more companies get connected to the Internet, EDI is becoming increasingly important as an easy mechanism for companies to buy, sell, and trade information  E- RFx:e-request for qualification  ERP:company's information systems designed to bind more Resource Planning. An amalgamation of a  Enterprise closely a variety of company functions including human resources, inventories and financials while simultaneously linking the company to customers and vendors. FAA: Federal Aviation Administration FAR: Federal aviation requirements ISO: International Organization for Standardization OEM or PRIMES: Original equipment manufacturer OTHER PARTIES:Independent organisations engaged in audit and certification activities that are under control and oversight of aerospace industry. They are industrymanaged  SECOND SHARED PARTIES:European association called ASD EASE in charge of assessing Suppliers QMS, applying the same assessment rules, and sharing the assessment results between its members. They are industry managed  THIRD PARTIES:certification activities that are not under controlIndependent organisations engaged in audit and and oversight of aerospace industry. They are not industry managed  XML: ExtensibleMarkupLanguage is a specification developed by the W3C. XML is a pared-down version of SGML, designed especially for Web documents. It allows designers to create their own customized tags, enabling the definition, transmission, validation, and interpretation of data between applications and between organizations.            
 
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GENERAL INTRODUCTION: Supply chain management
As the economy changes, as competition becomes more global, its no longer company vs. company but supply chain versus supply chain. Harold Sirkin, VP Boston Consulting Group  Recently, the global market schemes have generated new concepts and mechanisms in various economic and industrial sectors. In the complicated global market place, Core Competencies of each enterprise empower their competitive advantages. Thus, the focus of various organizations is directed to their core competencies. For this reason, they try to manage their internal and external resources comprehensively. This orientation to integrating different parts of a business or a production process causes each industry to move initially toward Computer Integrated Manufacturing (CIM). Thereafter, they have evolved into Computer Integrated Business (CIB). More recently, they have grown into Extended Enterprise (Browneet al., 1996).  As a result, modern managers are engaged more and more in the processes of Decision Making (DM) and are forced to consider all factors within the walls of their factories, as well as external factors with a holistic perspective. This led to Supply Chain (SC) systems or more generally, Value Chain (VC) and Value Stream (VS) approaches. SC, VC and VS concepts and definitions, as a total system, have been investigated by many researchers at universities and academic centers, as well as by professionals in industries.  The first concern of a supply chain and a value chain is generally the purchasing process. In such cases, the focus is on the supplier selection, supplier evaluation and relational activities with sellers. In a larger perspective, upstream suppliers are considered as a part of a manufacturing/ buyer enterprise. Buyers usually plan and control their systems and link them to their suppliers. Tiers or levels of suppliers form a supply network, with the buyer managing and leading it in an integrated way.  Finally, supply chain management leads to a value chain approach, in which all the affecting elements related to the customer(s) are considered and analyzed in a broader view. In this approach, manufacturers and distributors are included in the chain. In general, a supply chain is defined as follow: A supply chain is the network of facilities and activities that performs the functions of product development, procurement of material from vendors, the movement of materials between facilities, the manufacturing products, the distribution of finished goods to customers, and after-market support for sustainability.  Based on this definition, such a network in a system contains a high degree of imprecision. This is mainly due to its real-world character and its imprecise interfaces among its factors, where uncertainties in activities from raw material procurement to the end user make the SC imprecise.   Main Aspects and Characteristics of the Supply ! Chain  
 
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