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A Pragmatic Approach to Achieving Supply Chain Savings

Hawksland Associates has supported its client - a major Aeroengine OEM achieve savings of 15% on the cost of bought-in components from its global supply chain.

A major Aeroengine OEM recently commissioned Hawksland Associates to conduct a complete pricing review of its supply chain with an objective to identify and achieve significant savings on the cost of bought-in components. Working closely with the client Procurement team Hawksland Associates, using its proprietary Supplier Development Toolkit, conducted an in-depth analysis of the Aeroengine programmes components, sub-assembly and systems levels. A detailed audit of the KPI's, capabilities, capacities and financial strength of the supply chain was also carried-out. Parametric Cost Modeling, Customer Value Process, Competitive Benchmarking, Should-cost Analysis, Design Analysis, Re-engineering, Business Process Improvement, Value Stream Mapping exercises and 'Low-cost' sourcing activities were also performed. 

With a complete portfolio of data to hand, Hawksland were then in a position to identify savings opportunites and formulate savings strategies appropriate to each aeroengine commodity and supplier. Hawksland thereafter held several preparatory workshops with each Procurement team member to develop tactics ahead of initial communications in a preparation for entering into a supplier negotiation phase. Hawksland together with the client thereafter 'rolled-out' the supply chain cost saving inititative by holding a series of Supplier Conferences which stated the clients objectives and presented a roadmap on how the client wished to work with its supply chain to achieve the identified savings. Hawksland supported the client Procurement team all the way through the deployment of each strategy including the negotiation phases until savings were finally contracted. Hawksland Associates client achieved savings of 15% on the cost of bought-in components from its global supply chain following this exercise.