Operational Costs - streamlined procurement processes enables Aerogistics to source parts more efficiently.
Economies of Scale - Aerogistics sources parts for several customers.
Reduced Product Costs (1) - Aerogistics leverages reduced costs as it sends a higher volume of orders to cluster suppliers than a single customer.
Reduced Product Costs (2) – Aerogistics sends each part out for competitive tender and negotiates the best price for the customer.
Inventory Costs – the project management and risk management expertise enables customers to reduce their buffer stocks by improving schedule adherence and lead-times.
Aircraft on Ground (AOG) – Aerogistics has improved visibility of supplier capacity and minimises the cost of AOGs by improving customer responsiveness.
Raw Material Costs (1) – Aerogistics establishes consignment stocking of high utilisation raw materials and develops service level agreements with material suppliers to reduce prices and improve delivery performance.
PROCURO enables Aerogistics to minimise raw material costs and the effects of minimum order quantities whilst maximising availability..
Sub-contract Costs – Aerogistics manages inter-cluster sub-contracting and can achieve economies of scale and improve responsiveness by using designated suppliers for particular operations.
STEADY-STATE ORDERS:
Operational Costs - automated project management and risk management processes enables Aerogistics to manage steady-state orders by exception and minimise manual activity.
Economies of Scale – Aerogistics sources parts for several customers and groups similar parts into families to optimise resource utilisation.
Reduced Product Costs (1) – as part of the Cluster Development Programme Aerogistics focuses on resource utilisation and the elimination of non-value adding processes to continuously reduce customer prices whilst maintaining supplier profitability.
Reduced Product Costs (2) – Aerogistics works with low-cost manufacturers in the Far East and Eastern Europe to minimise product costs.
Reduced Product Costs (3) – Aerogistics sends each part out for competitive tender and negotiates the best price for the customer.
Inventory Costs – Aerogistics reduces customer buffer stocks by operating a KANBAN kitting system to provide the customer with JIT delivery of multi-commodity kits.
Raw Material Costs - PROCURO enables Aerogistics to minimise raw material costs.
Sub-contract Costs – Aerogistics reduces sub-contract prices by driving economies of scale and improving inter-cluster visibility so that companies can improve their production planning.
'Aerogistics has successfully deployed an ERP system into RD which manages both our A.O.G. spares orders and steady-state orders.
The Cluster Development Programme has improved our supplier relationships, improved schedule adherence, reduced finished goods inventory, reduced WIP and improved machine utilisation by 28%.
We are now in a much stronger position to bid for new work packages'
Ron Daly, Managing Director,
RD Precision Ltd, Queensferry
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