Airbus A350 Faces Supply Chain Challenge
According to Newswire's interview with Fabrice Bregier, the European company Airbus faces difficulties as it moves from the development phase into the industrial phase in their new wide-bodied Airbus A350 project. The Airbus A350 is meant to answer some of the limitations of the A330 by offering more space for passengers as well as elite luxury parts including a Rolls-Royce engine. The plane is slated to premier into the airline industry in 2014, however recent lulls in the supply chain process have executives worried over the production of the highly anticipated planes.
While the larger composite parts that make up the planes have not created many issues, (big suppliers have seen no problems in fulfilling orders,) the need for smaller, more complex components have created verifiable hiccups in the plane’s production. Specifically, second-tier suppliers are forced to manufacture much more complex parts then they are used to making, and the fast-paced demands of Airbus’s production process have some of them unable to perform under the pressure.
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The Airbus A350 has already seen significant stalling in their projected release of the plane. To date they have already set back the plane’ s arrival on the market by six months, as to avoid any major letdowns to buyers of the new Airbus, which could cost them major money in reparations. Buyers can rest assured Airbus has learned its lesson in ensuring they deliver a fully complete, fully tested product before debuting it on the market. Their error-filled initial release of the A380 racked up great expenses. In addition, their competitor Boeing Co. ran into unnecessary costs in its haphazard launch of the 787 Dreamliner program.
The company has taken additional measures in ensuring a quality product for its much revered customers. They are supplying a team of engineers and technicians to provide the second-tier suppliers with technical advice to ensure an optimal outcome in overall production.
Ultimately industry demand for the planes are high, and the company’s proactive approach to speeding up the small component manufacturing should guarantee a safe, and profitable take-off.
Vizibl: The Future of Supplier Relationship Management (SRM)
Even the best procurement team on the planet can only derive so much value from their suppliers by tinkering with spreadsheets or negotiating another half-percent-per-unit from a regular bulk-buy.
The value of relationships count in today’s fast-paced and disrupted business environment, where partnerships, future efficiencies and risk mitigation are just as vital a measure of an organisation’s maturing procurement organisation as overhead reduction.
A recent McKinsey survey into 100 large organisations found that the more cooperative an organisation, the more financially competitive it could become. "Companies with advanced supplier-collaboration capabilities tend to outperform their peers,” it found, but also admitted that this value is not a simple thing to access.
Visibl is a company built from the ground up with the philosophy of ‘delivering mutual value' in mind. Its digital procurement platform is designed to place collaboration at the centre of supplier relationships. Greater transparency for all stakeholders not only simplifies and quantifies contractual obligations, but also provides opportunities to discover and align on common goals and business objectives.
How does Vizibl’s platform work?
Vizibl’s supplier relationship management platform feeds off data. By leveraging data from existing enterprise applications such as ERP, P2P, risk management, or project management systems, all stakeholders can share a central source of truth. The result is greater transparency, visibility and accountability on both sides of a contract. The platform is divided into several focus areas:
- Vizibl Relationships: This system helps organisations move beyond transactional interactions with their suppliers, instead building trust and applying a governance framework that is both scalable and consistent to better support core business objectives.
- Vizibl Workspace: Operating in one virtual workspace removes friction in collaborative endeavours and aligned initiatives. Vizibl Workspace enables partners to drive goals together, whether improved cost-savings, ESG commitments, new product launches or boosting operational efficiency.
- Vizibl Reporting: Measuring results is critical in achieving business objectives, forward planning and risk management. This system helps business leaders leverage actionable data to quantify and drive initiatives, support and mange supplier performance, and understand true ROI.
Key Vizibl customers: Heineken, Vodafone, Astellas
“Gartner lists supplier collaboration as supply chain leaders’ number one focus to solve for agility and resilience”
Speaking to SupplyChainDigital.com earlier this year in June, Mark Perera, CEO and co-founder of Vizibl said: “We work with companies across multiple industries, but regardless of sector, we really see agility and resilience as overarching topic areas in the supply chain. From a resilience perspective, that’s both in terms of operational resilience, but also strategic resilience; we see organisations looking at implementing the desired levels of flexibility and the ability to change with demand, as they look towards the future of their company.”
“Gartner lists supplier collaboration as supply chain leaders’ number one focus to solve for agility and resilience,” he added. “The mindset and process change to switch to a supplier collaboration model will be a challenge for organisations that are falling behind.”