The benefits to OEMs and Primes can be summarised as follows: 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. "SMS and Aerogistics have forged a strong relationship over the past 12 months which has resulted in a lucrative contract from a major aerospace company. The Aerogistics Cluster Development Programme has been focused on the configuration and fine tuning of our MRP system. We have over 98% schedule adherence, improved our throughput by 60% and reduced WIP by 23%." Ian James, Managing Director, James Engineering Ltd All content copyright Aerogistics. Site designed by TM3.