This story is for CEOs who:
- Want to find out how risky their supply chain is
- Need options to reduce costs and risks and capture benefits
- Are concerned about adherence to requirements
The Challenge
Faced with increasing risk in the supply chain and disruption from poor visibility of supplier issues, senior management needed a comprehensive view of the supply base for their most valuable aircraft program to determine Rate Readiness viability. SGS-Maine Pointe was brought in to map the current supplier landscape with respect to risk, single sourcing, and optionality; confirm the population of high-risk categories or suppliers; determine the feasibility of optionality; define the magnitude of the problem; and quantify the cost/risk/benefit to the client.
Increasing adherence to production readiness assessment
SGS Maine Pointe:
- Assessed risks in sole sourcing parts and the potential for optionality
- Improved the preparation and execution of the Production Readiness process
- Develop a framework to stand up a Rate Readiness Center of Excellence to ensure continuous improvement and sustainability for all the company’s programs
Lessons learned for other executives
- A global organization needs consistent supply chain policies
- Optionality and supplier relationship management reduce supply chain risks
The Results
- Increased supplier rate risk identification by 41% after completing a Production Readiness Assessment (PRA)
- Increased PRA scheduled adherence from 73% to 90% from October to December
- Participated in pre- and post-coaching on 10% of scheduled PRAs to mitigate risks
- Captured 45 distinct recommendations and converted into reference coaching guide
- Trained over 300 Procurement Agents (PAs), PA Managers, Industrial Engineers, and Senior Managers on Rate Readiness
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Increasing visibility to reduce supply chain risk (CS260a)
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