ThyssenKrupp Aerospace, the materials management and supply chain services provider to the world's leading aerospace companies and their supply chains, is to increase its use of Optimiza software for inventory optimisation. The move is part of a customer-led strategy which has already lead to a significant decrease in inventory levels and an increase in product availability.
The Optimiza technology from Barloworld Supply Chain Software, the provider of Smart supply chain planning and optimisation software and value-driven services has successfully been used by ThyssenKrupp Aerospace in several countries for many years to manage contracts with key customers including Boeing, Airbus and Bombardier. With the new collaborative partnership, ThyssenKrupp Aerospace and Barloworld both take their cooperation to a new level: the software will be rolled out to all of ThyssenKrupp Aerospace's locations worldwide and improved functionalities will jointly be developed.
"Increasingly, our customers are becoming more globalised and expect ambitious service standards, high levels of visibility and the right prices from their materials partners," said Harald Meyer, Chief Financial Officer at ThyssenKrupp Aerospace. "For us, this means paying close attention to materials availability and ensuring on-time delivery using a minimal amount of inventory in order to optimise working capital.
"Optimiza helps meet rising customer expectations by enabling us to forecast demand on a mid and short-term level. It also gives us visibility on supply chain trends that allows us to plan ahead with optimal stock levels. Crucially, because it is linked to our internal systems, it combines internal data with customer forecasts and supplier information, which helps to highlight material shortages and other short-term challenges and enables us to take action."
Part of ThyssenKrupp, a diversified industrial group headquartered in Essen, Germany, the multinational Aerospace division operates from numerous locations in the Americas, Europe, North Africa and Asia Pacific. ThyssenKrupp Aerospace's 1,800 employees aggregate demand across a single supply chain on behalf of leading international manufacturers. The organisation's network supplies local services to meet the needs of aerospace subcontractors globally.
"In the competitive global aerospace market, organisations need full visibility of product to ensure maximum availability of material to customers," said Kevin Boake, Managing Director at Barloworld Supply Chain Software.
"Rather than losing money by inflating inventories, rescheduling production or placing emergency orders, they need to stay one step ahead of customer demand. Our solutions integrate best-practice inventory management methodologies using world class decision support tools, enabling users to create and sustain inventory optimisation throughout the supply chain."
ThyssenKrupp Aerospace is one of a growing number of leading international companies in the aerospace and defence industry working with Barloworld Supply Chain Software, including Agusta Westland, GKN, Sabena Technics and Lisi Aerospace.
Barloworld Supply Chain Software's Smart supply chain planning and optimisation software and value-driven services support organisations by improving visibility of forecast data, identifying excess stock and developing internal planning skills and capabilities. Its Smart solutions directly respond to KPMG's 2015 Global Manufacturing Outlook (GMO) survey, where international manufacturers confirmed that lack of flexibility and responsiveness to changes in demand or product mix posed a significant challenge for their organisations.