WHO ARE AEROGISTICS?
Aerogistics is a supply chain management company focused on the clustering of multi-commodity suppliers to provide a one-stop shop service to the aerospace industry.
Aerogistics is based at the University of Liverpool and comprises of professionals from industry and academia, bringing together a wealth of sector skills, experience and insight to develop world class aerospace cluster organisations.
We collaboratively diagnose, develop, and implement relevant and practical solutions that meet the strategic, tactical and operational needs of our cluster members.
Our approach is to combine best practice supply chain management techniques with leading-edge e-business solutions to streamline the flow of materials, money and information across a business in a way that has not been possible before. |
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HOW DOES AEROGISTICS ADD VALUE?
We work with our cluster members to identify specific issues and add real value through our detailed knowledge of the aerospace industry. We believe in transferring our skills and only propose solutions that have tangible and measurable benefits.
We also create value in the supply chain by our continuous cluster development approach, streamlined cluster management processes and integrated kitting procedures. |
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WHAT CLUSTER STRATEGY IS MOST SUITABLE FOR OUR COMPANY?
Aerogistics recognises that each company is unique, therefore in order to determine which cluster strategy is most suitable for each company, an initial analysis is undertaken to determine cluster members as either Category ‘A’, ‘B’, ‘C’ or ‘D’ suppliers. The classification establishes whether suppliers are more suited to the responsive demands of the aftermarket or low cost drivers of steady-state production. |
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WHAT DOES AEROGISTICS DO FOR THE AFTERMARKET?
Traditionally Maintenance, Repair and Overhaul (MRO) companies source parts from a high number of disparate suppliers. MRO’s therefore need to interface with many suppliers requiring high levels of project management expertise and high levels of stores resource to book in individual parts.
The aftermarket requirements can be extremely varied and sporadic, requiring a broad spectrum of suppliers. It is therefore difficult for MRO's to develop strong relationships with a large supply chain that are seldom used. Typically this results in poor delivery performance and inflated prices from the supply chain.
The Aerogistics business model capitalises on economies of scale achieved by aggregating the demand of several MRO’s. Aerogistics provides a single interface to the MRO and leverages improved responsiveness and prices from the increased volume of orders and Cluster Development Programme. |
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WHAT DOES AEROGISTICS DO FOR STEADY STATE PRODUCTION CLUSTER MEMBERS?
Changing competitive environments, globalisation and technological innovation have been increasingly driving organizations to derive competitive advantage through the management of their total supply chain rather than individual companies.
Traditionally, OEMs and Primes only interface with their first tier suppliers. Their expectation is that they send a purchase order and receive delivery of the completed product, therefore passing the sub-tier supply chain management and project management responsibility onto the first tier companies. This propagates inefficiencies throughout the supply chain as smaller companies do not have the expertise or systems to optimise their supply chains nor do they have the scale to leverage price reductions.
The Aerogistics value proposition for steady-state production orders is to combine the one-stop shop advantages of horizontal clustering with the streamlined benefits of vertical clustering. |
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WHAT ARE THE BENEFITS FOR CLUSTER COMPANIES WORKING WITH AEROGISTICS?
Aerogistics works in collaboration with the University of Liverpool and comprises of professionals from industry and academia, bringing together a wealth of sector skills, experience and insight to develop world class aerospace cluster organisations.
Aerogistics aggregates cluster companies purchasing spend and we employ procurement specialists to negotiate better deals with suppliers. It works with cluster companies to define and develop their competitive strategic focus as either niche or responsive manufacturers to combat the threat of global competition.
The Aerogistics Cluster Development Programme drives cluster companies’ profitability and competitiveness. It provides a holistic improvement plan which meets the requirements of all aerospace customers.
Aerogistics has a broad customer base which reduces risk and enables us to group similar packages of work together to promote specialization within our cluster companies. Aerogistics works with suppliers in low-cost countries to ensure it wins work packages for its cluster companies. We use our cluster companies for high value added work and sub-contract low value added orders to overseas suppliers.
Acting as the cluster project management company, Aerogistics takes responsibility for on-time delivery of work packages. Therefore if a cluster company is late on a delivery, only that company will be penalized and not the remaining cluster companies. We do not charge any cluster companies for membership. All we ask for is total commitment to schedule adherence, quality and our Cluster Development Programme. |
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HOW DOES AEROGISTICS MAKE MONEY?
At the quotation stage Aerogistics adds a mark-up to supplier prices. This can vary depending upon the order type, supply chain complexity, value of order and kitting requirements. Aerogistics differentiates itself by taking a profit only from the benefits received by its customers, i.e. reduced overall cost and improved service level.
Click here for CLUSTERING > Advantages |
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WHAT IS CLUSTERING?
Intense competition in the global marketplace is forcing organizations to consider new practices by which they could enhance and sustain their competitive capabilities. Clustering is one such option through which an organization can leverage its resources to compete effectively against competitors.
All companies are part of a cluster to some extent in that all companies form relationships with suppliers, buyers and competitors. It is only the extent of the operational alignment, interdependency and systems integration that determines the formalisation of a cooperative cluster.
Companies that collaborate as a focused alliance of multi-commodity suppliers are defined as ‘Strategic Clusters’. They align business strategies, processes and systems to maintain competitiveness.
The term ‘Tactical Clusters’ is used to describe the sub-group of companies within a strategic cluster that are either joint bidding or project managing a particular work package. A company may only be part operate within one strategic cluster but may be part of several tactical clusters. |
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WHAT ARE THE BENEFITS OF CLUSTERING?
Clustering enables greater presence in the marketplace and access to wider market opportunities, therefore providing a better chance of securing larger contracts. It enables cost effective sharing and pooling of resources, – production capabilities can be expanded and resource utilisation increased, thereby improving efficiency without placing excessive strains on capital reserves.
The ability to call upon more extensive production capabilities allows individual companies or the cluster as a whole to quote for a wide range of contracts. It enables sharing of appropriate business development, running costs, market intelligence and ideas. Cluster companies can aggregate purchasing costs – economies of scale
Clustering can enable greater marketing to be accomplished without sacrificing company individuality and lower vulnerability during the formative years. It enables more substantial profile in financial markets and increased access to financial support as well as guidance from more experienced companies. |
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WHAT ARE THE DIFFERENT TYPES OF CLUSTER?
Companies that collaborate as a focused alliance of multi-commodity suppliers are defined as ‘Strategic Clusters’. They align business strategies, processes and systems to maintain competitiveness.
The term ‘Tactical Clusters’ is used to describe the sub-group of companies within a strategic cluster that are either joint bidding or project managing a particular work package. A company may only be part operate within one strategic cluster but may be part of several tactical clusters. |
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HOW DOES A COMPANY BECOME AN AEROGISTICS SUPPLIER?
There are several criteria that must be met to become an Aerogistics cluster member. Companies must have a robust quality management system and be committed to strategic and operational changes defined by the Aerogistics Cluster Development Programme.
You must have financial stability and either niche / responsive manufacturing capability or commitment to plant and resource investment as well as a history of good schedule adherence and quality. |
