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Increasing visibility to reduce supply chain risk (CS260)



This story is for CEOs who:

  1. Want to find out how risky their supply chain is
  2. Need options to reduce costs and risks and capture benefits
  3. 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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