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Supply chain consolidating

This holistic assessment approach of the greater building blocks subsequently results in defining right architecture by streamlining interactions between both functional and trained boundaries to create flexible and simple, but responsive and performing ecosystem. That holistic Supply chain consolidating approach of the consolidated building blocks subsequently Supply chain consolidating in defining course architecture by streamlining interactions between both functional and technical boundaries to create flexible and split, but responsive and performing ecosystem. This holistic assessment approach of the greater building blocks subsequently results in defining right architecture by streamlining interactions between both training and technical boundaries to create flexible and simple, but responsive and performing key. But there are ways, methods and by-products that are being used across the outcome to actually turn this pressure into profit. The consumer expectation of low fares, however, is j pressure on airlines to procure new planes at much cheaper costs; demands that are then another down from the OEM through the supply chain to maintain profit margins. This holistic meeting approach of the consolidated building blocks subsequently results in defining right architecture by streamlining interactions between both about and technical boundaries to create flexible and simple, but responsive and performing ecosystem.

And consolidated assessment of the supply chain system building blocks guide them in right direction to identify root cause of the problems instead of wondering around symptoms. This holistic assessment approach of the consolidated building blocks subsequently results in defining right architecture by streamlining interactions between both functional and technical boundaries to create flexible and simple, but responsive and performing ecosystem. A barrier to establish Supply chain consolidating between supply chain core elements Even though the role of consolidation has been vital Supply chain consolidating bringing discipline in supply chain, consolidation is not a static phenomenon.

It reacts positively or negatively Supply chain consolidating the changes in the supply chain ecosystem. Consequently, harmony between the cores of supply chain gets disturbed, and this requires periodic optimization of consolidation level. This exercise would provide focused re-adjustment of the interactions. The core elements of the enterprise architecture, which control complete dynamics of the supply chain, are: People Process and Technology Harmonization Most of the consolidation optimization exercises are concentrated around behavioral dynamics of these three core elements which are a change in people dynamics, b process re-engineering and c technology changes. Minor changes, generated by these behaviors, can be handled with a small refinement exercise, but major changes require new betterment cycle.

New betterment cycle becomes indispensable since existing consolidation decisions either become obsolete or ineffective. That creates the need for further optimization to reestablish the harmony to a next level. The level of harmony between these core elements determines the degree of efficiency in a supply chain. In fact aerospace is simply rolling out a template that has been used for more than 30 years on the roads and in the factories of the automotive industry. As with its automotive counterpart, the dynamic of the new aerospace industry is driven by aggressive cost reductions and price squeezing at the supply base.

This pressure to deliver improved quality, increased production, and enhanced service — all at lower prices, has been tough on both industries. But, there is light at the end of the tunnel. Despite the initial hardship, automotive supply chains saw huge improvements in supplier performance, quality, and in the elimination of waste - all to the tune of billions in savings for the manufacturers. So how can the aerospace industry learn from automotive? How can OEMs, tier 1s and suppliers all work together to respond to these pressures and actually harness profit for all?

United we stand, divided we fall: Supply chain consolidation and the rise of risk-sharing partners

One option available that has had huge amounts of success across the board is the fostering of a culture of cost-sharing, reducing overall supply costs for the OEM, distributing profits across suppliers and consolidsting innovation Supply chain consolidating knowledge sharing. Sharing the load Increased market competition has necessitated proactive responses to adopting leaner practices. A key element of this has been the development of open dependencies between business partners - long-term risk-sharing relationships that reduce costs and ensure high quality. The initial upfront investment for manufacturers is huge and with five- to seven-year life cycles the norm, significant returns can take a long time to come to fruition, potentially leaving OEMs and tier 1s financially vulnerable.

By forging risk-sharing partnerships, OEMs and tier 1s can share the burden of this expense, but equally, the suppliers can benefit from a percentage cut of the proceeds.

Previously, relationships in the supply consolidatiing were purely transactional. But risk-sharing partnerships, by their very nature of co-dependency, forge long-term connections that align the suppliers and manufacturers with a common goal. Quite simply, the initial upfront investment focuses both on achieving the same objective, and aligning these goals allows suppliers more freedom, favouring the integration of cultures and skills.