a source of competitive advantage
Industry Perspective
Like other manufacturing industries, the worldwide recession is weighing heavily on aerospace & defense manufacturing.
Overview
Commercial aerospace companies and their suppliers have been hit hard by the significant decline in global air travel resulting in a sharp drop in new orders for aircraft and parts. Other factors including volatile raw materials costs and fuel prices, tighter regulations, limited capacities for some critical materials combine to create a challenging operating environment.
Coordinating a complex value chain is critical to success.
With a gradual shift in manufacturing strategy over the past decade, the volume of outsourced production parts, components & assemblies has increased significantly. An important trade off of this strategy has been the loss of control, leverage, and access to important material data that can typically represent as much 70 percent cost driver of finished part cost. Critical sourcing decisions affecting price, availability and delivery [once controlled by the OEM], have been delegated to part suppliers and their sub-tier networks. Success for the assemblers of the finished product (such as the Airframe or Engine manufacturers), is heavily dependent on the performance of their suppliers, and how well they manage the interdependencies between the tiers of supply that are no longer visible to the OEMs.
How Newview can help
Newview’s Network Resource Management product and solutions enable aerospace & defense manufacturers to manage the risk of acquiring critical raw materials for the supplier base. Benefits include the ability to understand total value chain material needs, capabilities to publish coordinating schedules for sub-tier suppliers, the ability to help control material and part source decisions, and managing cost exposure to material price volatility.
For a more in depth look, visit our results page.
