Case study
UK aerospace company
Supplier management improvement for a UK aerospace company
All major components and outsourced parts for this UK company's aircraft conversion program were sourced from the US, with ordering responsibility lying with a US design house. It was recognized that there was an opportunity for cost saving by transferring ordering responsibility in-house and using European based suppliers. PA identified and managed the realization of cost savings by bringing procurement in-house, and developed an extensive assessment and selection process for UK sub-contractors, including their ability to offer other, extended innovative services to increase cost effectiveness.
PAs client acheived initial savings per aircraft of 30% and subsequent ongoing savings increased this amount. In addition, the use of sub-contractors alleviated a major labor shortage.
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