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Long Term Supply

In commercial aerospace and defense the long-term competitive outlook is forcing companies to manufacture new and improved products more frequently. All of these cases demand greater investments in development, capital expenditures, and strategic growth initiatives outside of their organic planning.

Aerospace and Defense players do face unique supply chain challenges, such as long lead times (many months or even years) and a relatively high percentage of sole source suppliers (reducing the amount of negotiating leverage for the primes). In defense, the unique nature of government contracting adds complexity to managing and tracking inventory.

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Resion’s Long Term Supply Services provide:

  • Planning: Allowing for proper supply and demand schedules to be met, securing proper funding and available product to meet production demands
  • Pre-Agreed Pricing formula – predictable pricing and budgetary management controls
  • Less Administration Costs and Scheduling and reduced costs
  • Focus on the difference between financial and physical inventory
  • Full transparency to leverage your inventory

Your lead time data are unreliable. Resion has worked with Aerospace & Defense Manufacturers to maintain accurate data when lead times are long and volumes are low and provide a clear picture of when parts will be delivered.

Having the “right” inventory is critical to manage inevitable variability in the supply chain.

Activities Performed:
  • Conducts part-level statistical analysis, we typically find some parts should actually have more inventory (offset by reductions in other parts, for a net overall savings
  • Work-in-process (WIP) inventory isn’t clearly tracked on the factory floor. While the full potential value for WIP inventory is tied to lean operations broadly, we often find sizeable near-term opportunities in optimizing WIP buffer targets.
  • Buyers routinely trade cash terms for price concessions. Incentives and metrics drive behavior. We find that buyers are almost always measured on part price alone and can lack visibility into their company’s carrying cost. As a result, contracts are often negotiated to allow for (or even encourage) early deliveries or offer generous cash terms.

Let Resion’s Long Term Supply Team customize your programs to meet your financial and product demand requirements to keep production schedules on time and within budget.

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