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Production processes can be severely disrupted when it is only discovered on the scheduled delivery date that the ordered production material will not arrive on time. Since this material often travels through long and complex supply chains consisting of many planning, ordering, production, and delivery processes, bottlenecks are not uncommon in practice. The problem is exacerbated by the fact that modern manufacturing plants often have very low inventory levels, meaning that materials are delivered just prior to production.It is therefore particularly important that production and material planners are informed as early as possible of any potential delivery problems. Only then can timely action be taken, such as ordering a replacement or rescheduling production.Shortly before delivery, the goods are in transit. During this time, the carrier closely tracks and monitors the status of the shipment. However, modern transportation times can be very short, and notification of delivery delays often comes too late to take countermeasures.Insight into supplier productionThe solution is to identify discrepancies in production planning and production at the supplier long before transportation. SupplyOn automatically collects a wide range of standardized production data from the supplier. This makes it possible to track which production quantities are in the planning phase and which are actually in production. The transmitted data also makes it possible to monitor production progress and determine which specific production step the order is in. This provides visibility down to the sub-assemblies and raw materials used.The power of our production-to-supply solution is that quantities in production can be mapped directly to buyer requirements. This provides immediate visibility into which requirements are already scheduled with the supplier or are already in production. By constantly monitoring the progress of work, the AI-powered system automatically learns normal production lead times and also recognizes when current production is slower than usual.Using AI to spot variances before they become a problemA complex, continuously learning predictive model based on historical monitoring data calculates an estimated completion date, taking into account recently observed production times and current work progress. This makes it possible to estimate, either during production or before production begins, whether the manufactured goods will be ready for shipment and whether the desired delivery date can be met.The highly AI-driven system generates early warnings for various situations:The planned production quantity is too lowThe planned production start is too lateThe quantity in production is insufficient to meet the upcoming demandThe production start is too late or will be delayed to meet the delivery dateBased on the forecast of the current production time, it is also possible to determine when the production for the upcoming demand has to start in order to avoid delivery delays. The system also records the difference between the quantity produced and the quantity delivered. This can be used to determine the percentage of scrap and to calculate a recommended production quantity in addition to the recommended start of production.In addition to clear graphical and tabular displays, the predicted delivery date, recommended production start and recommended production quantity can be sent directly to the customer's ERP system. This means that the AI system's calculations are available to the customer at the line item level.Optimized planning at both ends of the supply chainBy combining demand and production data and performing intelligent calculations, the system provides valuable insights to both the purchasing and supply sides, enabling both to improve their planning processes. This increases the likelihood that production will start on time and in sufficient quantity.Production delays are automatically detected and alerts are generated, providing insight into exactly where production is stuck. This allows for timely and targeted adjustments
Concepts such as decarbonization, net zero or carbon neutrality are now part of the common discourse in customer-supplier relationships. The influence of the supply chain on a product's final ecological footprint (product carbon footprint, PCF for short) is already well known and the efforts to reduce the emissions (Scope 3 upstream) have taken place in many industrial sectors.That's why this article is not about why reducing carbon emissions in the supply chain is the biggest lever to achieve their climate goals. Many studies already describe this and it has been discussed in webinars and at conferences. Rather, the following article will focus on the biggest challenges and highlight possible solutions.Challenge 1 - Data quality and availabilityTo reduce Scope 3 emissions effectively, correct decisions and a good data basis are required. As a company, I create this data by gathering as much real data (primary data) as possible from the supply chain and relying less on standard values or factors (secondary data).What sounds so simple, however, proves to be a significant challenge in practice.How do I retrieve the data?How do I consolidate them?Can my suppliers even deliver the data I need?Are the data I receive from my suppliers correct?Even this seemingly simple question is challenging for many companies - Gartner, in its report "3 Steps to Accelerate Scope 3 Carbon Emissions Reduction in the Value Chain", also identified data quality and availability as one of the most serious problems that companies have to overcome.The PCF data can be queried in different ways. Via e-mail for individual products, via Excel or with a special collaboration tool. Choosing the right way is essential for feedback. It has been shown that e-mail and Excel are often used to launch initiatives, but they quickly reach their limits for all parties involved. Due to the lack of plausibility checks, neither option allows any conclusions to be drawn about data quality and creates further data silos.For this reason, specialized software tools for the exchange of carbon data have become established, such as SupplyOn Product Footprint. In most cases, these tools offer an intuitive user interface, plausibility checks, are integrated into other business processes and are therefore part of an end-to-end collaboration process.This is especially beneficial for small and medium-sized companies (SMEs), as they do not have to introduce additional software, but can work in their familiar environment. Standardized query templates across several customers also ensure greater user acceptance.As a customer, I benefit from a higher return rate and high-quality data. If I want to ask for more details than those provided in the standardized templates, flexible software tools also offer the option of customization, so that I can obtain all the data I need from the suppliers to make my decision.However, care must be taken here not to overload SMEs with overly specific questions, which can either take a very long time to answer or, in case of doubt, cannot be answered.Challenge 2 - EfficiencyWhen I request primary data from my suppliers, it's important to consider what resources they have to deal with the topic of PCF as a whole. As an OEM or Tier 1, I usually have specialists for lifecycle assessment, so-called LCA experts, who deal with this professionally and in most cases have a significantly larger team compared to a Tier 2, Tier 3 or even Tier 4. Hence, it's crucial to recognize that my supplier does not have the same knowledge and resources as I do.Efficiency is a critical success factor in collaboration. Using software solutions for data retrieval is often deemed efficient. In most cases, this is also easier and saves time compared to collaborating via emails or Excel files. However, the journey cannot and should not end there, as the data is initially without context and detached from other business processes.Successful companies integrate the query of PCF values into existing processes along the product life cycle and thus create additional efficiency in collaboration. The purchasing process is a good example of this, as suppliers are already asked to submit their carbon data during the RfQ phase - parallel to the price information and integrated into the sourcing software. The supplier can use a tool to communicate with me as a customer, while I receive all the relevant data at the same time and in a bundled form.SupplyOn Product Footprint's seamless integration into the source-to-contract process provides decisive added value at this point, contributing to more efficient collaboration.However, efficiency is not just a question of the right software. Transparency and communication with suppliers are also crucial in view of the different levels of knowledge about PCF and the limited internal and external resources. The more understanding and knowledge in the supply chain on the subject, the better and faster the data feedback will be.Many companies therefore organize webinars, training sessions or entire supplier days specifically for their suppliers. SupplyOn supports its customers in this process and offers customized supplier community events to cover a wide range in an efficient and resource-saving manner.Challenge 3 - PriorityThe intensity with which companies advance decarbonization efforts is closely linked to the priority placed on sustainability. The importance of dealing with carbon data from the supply chain is influenced, for example, by the delivered industries, legal reporting requirements (keyword CBAM and CSRD) or the company's own corporate goals.Decarbonization competes with many other topics for attention and resources. Cost reduction, digitization, a shortage of specialists, delivery quality, availability - these are all challenges that also need to be overcome. It is therefore important to first define a clear strategy and prioritization within the company.In order to make the importance of PCF values clear to my suppliers, transparency and communication are once again important success factors. Without close cooperation and involvement of suppliers, sustainable carbon reduction along the entire supply chain is not possible. Again, community events and supplier days are among the best practices.In addition, the purchasing side can influence the priority given to suppliers by giving the PCF more weight in the award decision. It is already not uncommon today to take the carbon footprint of a product into account when making purchasing decisions. As the carbon price rises, the importance of the PCF will continue to increase.SummaryIn conclusion, it can be said that purchasing can make a major contribution to the decarbonization of the supply chain despite the major challenges. Selecting the appropriate software, implementing efficient, integrated internal and external processes, and maintaining transparent communication with suppliers are essential components.
Creating transparency across the entire life cycle of a product: this is what the Digital Product Passport (DPP) aims to achieve. On November 23, 2023, the European Commission published a regulation that will come into force in 2024. Due to the highly interconnected international supply networks, this regulation not only affects companies in the EU, but also has an indirect impact worldwide.What is the Digital Product Passport (DPP)?The regulation contains detailed requirements for the content of the DPP. The Digital Product Passport should contain information about the following topics:Product identity and origin Product composition and propertiesEnvironmental impact of the productProduct repairability and recyclabilityEvery citizen should then be able to access the described information via a QR code or a hyperlink attached to the product.The German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) has already published a list of the product groups for which the DPP will be mandatory by 2025. These areEnergy consumption-relevant products: Household appliances, office equipment, consumer electronics and lighting fixturesLarge electrical and electronic equipment (EEE): Televisions, refrigerators, washing machines, dishwashers and air conditionersTextiles: Clothing, shoes and bed linenPackaging: Plastic packaging, metal packaging and paper and cardboard packagingWhat is the Digital Product Passport for?According to the ministry, the introduction of the Digital Product Passport will make an important contribution to the circular economy. The DPP will enable consumers to make more sustainable consumption decisions. It will also help manufacturers to improve the environmental impact of their products.Concrete impacts of the DPP:Consumers will be able to recognize more easily which products are repairable and which are not. This will help to ensure that more products are repaired and fewer end up in the garbage can.Manufacturers will be encouraged to design their products in such a way that they can be repaired more easily. This will lead to an extension of the service life of products.The recyclability of products will be improved. This will help to ensure that more raw materials from old products can be reused.The introduction of the DPP will be an important step towards a more sustainable economy.Implementation of the digital product passport in practiceThe SupplyOn Traceability solution supports customers and suppliers along the supply chain in collecting and providing the data required for the DPP. The data is then available to authorized users for further processing in the SupplyOn Data Lake called DAISY (data space industry). In addition, SupplyOn's Digital Twin solution offers a wide range of options for providing data to all participants in the industrial network.The EU has already announced that the list of mandatory product groups will be expanded in the future. The European Commission plans to review and adapt the DPP regulation every three years. SupplyOn will follow developments very closely and expand its services for new product groups and content accordingly.
Held on December 5, 2023, the Aviation Forum 2023 showcased the industry's resilience and determination, commencing sharply at 9:00 am. Despite adverse weather conditions that caused numerous flight cancellations, over 1,300 attendees, 130 exhibitors, and 70 speakers converged for the two-day event. Beyond the impressive numbers, the event quality was also reflected by the insightful contributions and discussions which encapsulated the current state, challenges, and opportunities of the aerospace industry.In essence, all the discussions revolved around a common goal: shaping the future of aerospace.Ramping up: a multifaceted challengeThe aerospace industry is gearing up for a substantial increase in production, targeting approximately 100 aircraft per month. Although international traffic is approaching pre-COVID levels, Airbus and its suppliers face a multifaceted challenge amid a poly-crisis, encompassing issues like interest rates, climate challenges, and material shortages.Managing the ramp-up is not a singular challenge but a poly challenge, given the myriad of interconnected issues.Collaboration emerged as a pivotal theme, recognizing that 80 % of the industry's added value stems from procurement activities. Cooperation between different tiers and OEMs is deemed crucial for future success.Collaboration: unlocking supply chain efficienciesJürgen Westermeier, CPO of Airbus, emphasized that collaboration is key to enhancing supply chain efficiencies. Airbus introduced four major initiatives:ZeroM: aimed at reducing the impact of supply chain disruptionsAXEXX: focused on increasing competitiveness and reducing costsAeroExcellence: a cross-industry initiative to mature supplier industriesNextEra: aiming to secure industrial continuity through collaboration and data leverageSustainability: the future license to operateSustainable Aviation Fuel (SAF) is crucial for its sustainability efforts, but the industry is also exploring alternative energy sources, such as liquid hydrogen (LH2) fuel cells and GKNA LH2 concepts.Holistic sustainability requires the involvement of all stakeholders: suppliers, OEMs, operators, regulators, and political and business leaders.In addition to alternative energy, industry efforts include recycling materials, exploring eco-friendly alternatives, reducing buffer stocks, and leveraging data and technology for a greener future.Challenges and opportunities aheadOne of the major topics for the future is the concept of a "digital material passport". Efficient systems and digitization will be essential for tracking materials throughout the aircraft lifecycle.Another future topic are environmentally friendly materials such as green aluminum or green steel. Yet industry acceptance is still at an early stage for these potential alternatives.Reducing unnecessary buffer stocks is crucial not only for cost but also for sustainability.Collaborative, transparent, and open use of data and technology can drive a greener future, too. But the industry grapples with the challenge of building trust and taking decisive action. In conclusion, the Aviation Forum 2023 illuminated the path forward for the aerospace industry, emphasizing collaboration, sustainability, and technological innovation as key drivers for future success.
From 2018 to 2021, the value of production in the Leonardo-led supply chain grew by 14 percent, from 21.4 to 24.4 billion euros. How was this possible? Leonardo is a large defense and aerospace company, a sector that in Italy includes other major players such as Thales Alenia Space, Avio Aereo and Macaer. The company led by Roberto Cingolani, just in 2018 initiated the important Leap (Leonardo Empowering Advanced Partnerships) program with the dual purpose of creating a digitally integrated ecosystem and promoting advancement in terms of innovation and resilience of strategic suppliers. Quality, cost, time, and technology utilization targets were defined. Then, Leap evolved: sustainability targets were added, with Leap - Partnership for Sustainability. But all this would have been difficult to achieve without AirSupply.But what is AirSupply? It is a powerful tool for purchasing departments (provided by SupplyOn, a company with headquarters in Hallbergmoos, near Munich, but also with offices in China and the United States). It is a shared industrial Cloud platform that optimizes more than just the working relationship between the manufacturer and suppliers, but also communication with suppliers in the downstream supply chain. It enables suppliers not only to connect and receive purchase orders; but also to change, within certain limits, delivery times and quantities. Above all, the platform is characterized by high visibility: suppliers can see if there is a decrease in demand from Leonardo's customers, and based on that they can adjust their raw material purchases. If, on the other hand, demand is robust, they can make longer-term purchases, which result in financial savings. This has increased the resilience of the supply chain, and allowed Leonardo to shorten lead times.87 percent of the 4,000 suppliers using the platform are SMEs. For example, Lombardy-based Logic (active in the development of avionics and electromechanical subsystems and components); Marche-based Civitanavi Systems (which makes inertial navigation and stabilization systems); Apulia-based Manta Group (which produces aerostructures for both fixed and rotary wings); and Campania-based Ala (active in the distribution and supply of advanced logistics services). Leap's next step? That of working on CO2 emissions. The context is still the Partnership for Sustainability, but the idea is to reduce the environmental impact of companies. That is the challenge for the next few years, and it concerns, of course, the whole supply chain. Progress toward the targets will be measured scientifically.Giacinto Carullo, Chief Procurement & Supply Chain Officer at Leonardo, talks about all this.What information systems do you use for dealing with your supplier network? What technologies?We use the AirSupply system, a powerful procurement management tool used by large Groups such as Airbus, Thales, Safran, Dassault, Liebherr, Premium Aerotech and Daher. It was to harmonize and standardize collaboration with suppliers to have a common digital platform and procurement process within the group. AirSupply enables high traceability, responsiveness and inventory control in our supply chain. First, it was piloted, for indirect spending, by Leonardo Global Solutions; then, for direct procurement, by the Aircraft and Aerostructures divisions; and finally, by the Helicopters and Electronics divisions. Essentially, it is a Cloud portal: suppliers connect and receive purchase orders. Most importantly, they have visibility into confirmed orders, with the ability to modify them.What exactly does the ability to change confirmed orders mean? Within what time frame can they do so and to what extent?The time frame depends on the type of supply, e.g. for products within the 12-month lead time, typically the first two to three are "frozen," followed by three to six "flexible" months, during which, in agreement with Leonardo logistics, it is possible to change the quantity - by 10%, 15% - and the delivery date. There are then several additional "forecast" months, in which the supplier sees commitment, but this does not necessarily result in an order.And who benefits from not translating a pledge into an order?In the AirSupply system, when there is a decrease in our customers' demand for Leonardo's products, our suppliers see it. As a result, they can make their own calculations and, for example, buy a smaller amount of raw materials that they need to make their components. Conversely, this long-term visibility allows suppliers – when they know demand is intense – to make long-term purchases, which generally saves them money. All of this has the dual effect of increasing supply chain resilience, especially in times of stress; and allowing lead times to be shortened.Does this mean that suppliers must adopt AirSupply?The system is a KPI in our Industrial Sustainability Roadmap. In short, AirSupply adoption is a key driver for supply chain digitization and high-level procurement. Our goal is to use the portal for more than 80 percent of supplier transactions. More than 5 thousand suppliers are currently using it, including more than a thousand in "full" digital integration mode. It means that the most important suppliers are already operating on the platform, which helps to create a digitally integrated and synchronized supply chain ecosystem.How does this fit in with Leap - Leonardo Empowering Advanced Partnerships - a program launched in 2018?Leap is a program to transform and accelerate the development of the supply chain. It is designed as a constantly evolving model. The initial point, but also the "key" point, is that it is intended to increase the level of partnership. The excellent supplier becomes a long-term, "stable" partner, and consequently gains visibility in the system, and enjoying the certainty of the relationship can invest in its own business and growth (including technological growth) contributing to its competitiveness, ours and that of all the other players involved. Partners are called upon to increase quality and must be excellent in operations. This is first and foremost in our interest. Our CEO, Alessandro Profumo, has repeatedly stressed this; Leonardo cannot be sustainable and competitive if its supply chain is not: the quality and safety of the final products depend on it, as do the flexibility and ability of the company's business model to adapt to technological challenges. What we offer our suppliers is a long-term perspective of cooperation, putting them in the best conditions to be able to plan and pursue their investments over the long term, thus also supporting their ability to compete independently in the market. Supplies to meet the fulfillment of our contracts can in fact last for as long as 20 years; it is good for the supplier to remain in the market for an equivalent period, to provide the components and services essential to us and our customers. AirSupply strengthens the partnership and makes it more streamlined and secure. Moreover, in 2021 Leap underwent a major upgrade.What update have you made to Leap in 2021?The program has evolved into Leap Partnership for Sustainability. The dimensions of sustainability have been added to those of quality and technology. Now partners are required to address security, health & safety, environmental and social responsibility, risk management. And they must share their strategies in this regard. In short, in 2021 we started building our ideal partner. Starting with an assessment.Did you carry out an assessment in 2021?Yes. The assessment involved 500 suppliers, the most important ones, and covered something like 200 KPIs. Already the fact that they were confronted with all these dimensions was important, for them, because it showed them the path to take by involving the staff. However, after "measuring" the degree of maturity of the partners on the dual quality-sustainability front, we began the maieutic approach.What does the maieutic approach consist of?We guided the 500 partners along the growth path, helping them to achieve their goals. With necessarily different actions from each other, based on the weaknesses of the partners manifested during the assessment. Some showed greater difficulties on processes, some on other aspects. In any case, we outlined a plan with two main objectives.What are the two main goals of your supply chain growth strategy?First, that of ensuring the strength and sustainability of the supply chain. Precisely because suppliers are called upon to provide us with services and components for periods of up to 20 years, they must be able to continuously improve their performance – the bar of objectives is continually being raised. Second, that of creating a significant number of Tier-1s (first-tier suppliers; typically, they know the strategies of the OEMs, know what technologies the OEMs are investing in, and are aware of their projects. In some cases, based on this information, they direct the whole supply policy and regulate its flows – note of the editor) and Tier-2 (basically specialists, who develop individual components on the basis of know-how established over the years – note of the editor) of international dimensions. Moreover, we are giving up supplier exclusivity. The fact that they have a strong partnership with us does not mean that they cannot or should not work with competitors. If they are good for us, they will be good for Airbus, for example. And in the marketplace they become more sound, more competitive and more resilient, helping to build a positive-sum game. All this merely increases the sustainability of our supply chain.What is the next step?The next step is to work on CO2 emissions. The context is still the Partnership for Sustainability, but the idea is to reduce the environmental impact of companies. That is the challenge for the next few years, and it affects, of course, the whole supply chain. Progress toward the targets will be measured scientifically, because Leonardo is part of Sbti (Science Based Targets initiative), a global initiative established in 2015 (by a collaboration between several organizations, such as the Carbon Disclosure Project, the United Nations Global Compact, the World Resources Institute and the World Wide Fund for Nature – note of the editor) to help companies set emission reduction targets in line with climate science and the goals of the Paris Agreement. The metrics used are very precise. The goal, for Leonardo, is a 40 percent drop in emissions by 2030.Does your supply chain generate a lot of emissions?Actually, the largest share of emissions is certainly downstream, among those who use, for example, our helicopters or airplanes. We have few energy-intensive factories; when it comes to the aerospace industry, this is equivalent to 2 percent of global emissions – but 1.5 percent is due to those who do aviation. So almost all of it.Among other partnership activities, you help your suppliers from a financial perspective. How does that work?Here, the "how" is very important, because it makes a difference. Results are generated or not generated because of the "how." Specifically, we have made agreements with seven banking groups to do supply chain financing. For example, we as Leonardo enjoy special factoring conditions (the assignment of credit – note of the editor): it was agreed that they should be extended to our suppliers. These moreover can get advances not only on invoices, but also on Leonardo's orders. For them it is a great help: since the lead time lasts 12 months, they must expose themselves financially; if they can get financing from banks on good terms, it is easier for them.And why did the banks agree to it?Because banks are familiar with our supplier program, and as a result they think that in the case of our suppliers we see a decrease in credit risk.There were 67 key suppliers of Leonardo, with a turnover of 1.3 billion euros and a total of 7,500 employees, who participated in the Elite-Leonardo Lounge program developed with Elite di Borsa Italiana. What did it consist of?In a development path aimed at entrepreneurs and top managers of supplier companies to accelerate their growth by facilitating access to capital, network, and key skills. Through it, companies were able to create a long-term strategic business plan and shared it with Leonardo. A key step: by overlaying our plan with theirs, we were able to assess whether the suppliers were heading in the same direction as us, especially in terms of technological development. What's more, about 50 M&A transactions have occurred in our supply chain; 70 percent of these involve companies that have gone through the Elite route. It means that they felt the need to strengthen themselves in terms of size, and this is good for us; it is also good for them from the point of view of competitiveness.What are the current obstacles for Leonardo's supply chain?For Italian suppliers, the problem is to be able to be competitive in the European context. As for the average size, these are small companies; as for the level of digitalization, it is good in relation to the average Italian company, but it is not yet at the level of the European average. In short, these companies need to be able to make a major leap forward. For this, a great product is not enough: you need planning, management, investment, long-term vision. And you must work on all these dimensions at the same time. It is not easy, but it is certainly not impossible. This interview by Marco de' Francesco has been published in Italian in the online magazine Industria Italiana: https://www.industriaitaliana.it/leap-leonardo-airsupply/
Nagoya, Japan – Following our jubilant celebration of SupplyOn China's 15th anniversary, we wasted no time in setting up shop at Aeromart Nagoya, a leading aerospace event taking place from September 26 to 28, 2023. Aeromart Nagoya holds great significance for Japanese aerospace OEMs, their suppliers, and the broader Asia-Pacific region.A showcase of aerospace excellenceThe event kicked off on day one with presentations and workshops at the Nagoya Chamber of Commerce & Industry. Days two and three saw a flurry of B2B meetings and additional workshops at the Nagoya Trade & Industry Center. The evening of the second day was graced with a captivating cocktail reception at the Aichi Museum of Flight, where industry leaders gathered for relaxed networking.Aeromart Nagoya is more than just an event; it's a nexus for industry leaders, suppliers, and experts to explore the latest aerospace technologies and supply chain trends, fostering continuity and enhancing manufacturing competitiveness. AirSupply: elevating the aerospace supply chainRecognizing Japan's growing importance in the aerospace market, SupplyOn seized the opportunity to present our AirSupply solution, which plays a pivotal role in optimizing supply chain management within the aerospace sector. In an industry where precision and coordination are paramount, AirSupply facilitates seamless collaboration between customers and suppliers. It aligns with the aerospace industry's intricate processes, enabling proactive capacity planning, real-time adjustments to delivery quantities and dates, and comprehensive tracking of orders and deliveries through a common web platform.AirSupply doesn't just strengthen relationships between manufacturers and suppliers. It also improves communication throughout the supply chain, creating more resilient supply chains through early detection and response to potential disruptions.The solution being the industry standard in Europe, we are now taking it to Japan. We are committed to deepening our presence in the Asia Pacific region. Our goal is to enhance collaboration, innovation, and supply chain efficiency in the global aerospace industry.
Managing both automotive and aerospace, as well as complex manufacturing, has kept me busy attending back-to-back conferences in 2023. It's only fitting to title my latest blog post with a nod to an old advertising colleague and friend, Steve O'Connor, who used to host an annual "Ski Like You Drive" event in Wisconsin (the Vail of the Midwest, sort of). It's fascinating to observe the strong connection between these industries, which share many suppliers. Automotive manufacturing, with its faster production and shorter lead times, is often at the forefront of transportation technology. Now, as Jetson's-style flying cars become a reality, they are becoming even more intertwined.As we approach the mid-year mark, it's clear that 2023 has flown by, driven not only by the series of conferences in the aerospace and automotive sectors but also by the surge of inquiries about our supply chain solutions. Now more than ever, organizations are seriously engaged in digital transformation efforts, with tight deadlines to meet. One customer aptly described the current situation as a "two-year backlog." After the uncertainty caused by the global pandemic, we face the same old challenges, along with new ones and ongoing unknown risks.A hectic yet exciting year so far: conference insightsThe Stellantis Town Hall Meeting kicked off my conference circuit. Hosted by MEMA (Original Equipment Suppliers) in the Detroit area, this conference provided an overview of Stellantis' future vision and strategies. It was a half-day session followed by an opportunity to meet the team and network with industry professionals.Next up was the PNAA’s Annual Aerospace Conference, called Advance 2023. This well-attended conference brought together hundreds of aerospace professionals from over 350 companies at the Lynwood Convention Center in Seattle. It was a great occasion to reconnect with old friends and explore the current and future state of aerospace, including technology advancements and supply chain challenges such as shortages, more visibility, transparency, and our ecosystem. Technology and tools were top of the list of subjects, and the message was clear for need for partners in the supply chain. I managed to contain myself and not stand up in the audience, wave my arms, and yell, "Hello, come talk to me about SupplyOn". Global discussions were in play, with a close eye on our overseas counterparts.Circling back to the East, I visited the South Carolina Automotive Conference in Greenville, South Carolina. The hot topic here was sustainability, an increasingly crucial aspect of the automotive industry. It was an excellent opportunity to learn from industry pioneers and explore the latest advances in sustainable practices. The conference also featured a display of Clemson University's autonomous vehicle, which showcased cutting-edge 3D printing technology.In between the conferences, meetings, workshops, and proposals we held our Annual SupplyOn North American Summit in South Carolina, near our North American headquarters. The summit was led by our Global CEO, Markus Quicken, and our North American CEO, Derek Baggerly. We concluded our summit with a tour of the BMW factory, complete with robots, exoskeletons, and hydrogen-fueled golf carts. This summit also kicked off customer and shareholder visits to North America. What’s unique and special about these visits is the engagement with our customers and the inclusion of their feedback into our technology roadmap. This is one of the key reasons I call SupplyOn the “Goldilocks” company: just right the right size to support customers like BMW and Airbus but also the right size to be agile, flexible, and accessible in order to partner genuinely.Next up was the Aerospace Industries Association (AIA) SMC Conference, hosted by Boeing in Phoenix, Arizona. This conference always provides an intimate setting for OEMs and suppliers to get together. Honestly, these events feel like part family reunion/part work happy hour but with very informative and inspiring sessions—topics surrounding supply chain challenges with parts, policies, governance, ESG, and future predictions.Aeromart followed shortly after AIA in Montreal, Canada. This conference toggles back and forth between Montreal and Seattle each year, further building our alliance. Discussions centered around supply chain challenges, future needs, labor shortages, visibility, transparency, and leveraging technology and tools. SupplyOn had a prominent presence at the conference, hosting a booth and delivering a workshop by our CEO, Derek Baggerly, to bring the buzzwords to business case. Sustainability, transparency, visibility, and ecosystems, to name a few.Throughout 2023, the demand for our supply chain software has been overwhelming, leading me to prioritize partnerships and skip a couple of conferences. However, this high demand signifies the growing importance of digital transformation in supply chains. As we move forward, transparency, visibility, collaboration, and sustainability remain key drivers in meeting the needs of 2023 and beyond.Looking forward to the Paris Air ShowWrapping up the mid-year recap, I'm excited to attend my first Paris Airs Show. This is an important event, particularly with the increased interest from North America. I'm honored to be a part of the show and look forward to engaging with industry professionals, learning more about aerospace organizations, and enjoying the airshow. Stay tuned for the show's highlights, the rest of 2023, and more!
"A new era of aviation: Sustainable. Resilient. Together!" Under this motto, Prof. Dr. Walther from IPM welcomed around 1,900 participants and 130 exhibiting organizations to this year's Aviation Forum, now in its 12th year. Munich was the venue for the second time.The event's title set the central themes: climate-neutral aviation, a resilient supply chain amidst a renewed rise in production rates, and partnership-based collaboration between all stakeholders. All three are key success factors for mastering the challenges of the future.Goals and strategies for more sustainability, resilience and competitivenessIn his opening speech, Airbus CPO and Aviation Forum host Jürgen Westermeier highlighted his company's ambitious goals: The production of 75 A320 family aircraft per month and zero-emission flying by 2050.In her highly acclaimed presentation, Marjolaine Grange, Head of Purchasing at Safran Group, spoke about the systemic axes along which performance and competitiveness in the aerospace supply chain can be enhanced. She emphasized the importance of SupplyOn AirSupply as a collaboration standard for aerospace SCM processes. It is used by 10,000 suppliers, including currently 550 at Safran alone and 700 more planned in the future.The industry standard AirSupply is growingSupplyOn works very closely with the industry consortium BoostAeroSpace for AirSupply, making it a successful industry standard and community solution.The AirSupply community continues to grow: this year, SupplyOn joyfully welcomed new AirSupply customer MT Aerospace to its booth:Future-proof and efficientKlaus Richter, former host of the Aviation Forum and now CEO of the Diehl Foundation, spoke about what it means to bounce back after the crisis as a major Tier 1 and to prepare properly for the future.Highlights of the two-day Aviation Forum from my point of view were, besides the expert presentations, the many personal conversations at the booths, the exchange at the Gala Dinner, which has become a tradition by now, as well as the Executive Workshops with brainstorming on the supply chain of the future.Factory Tours: Aviation hands-onThe Aviation Forum concluded with the Factory Tours. Destinations for these tours included SupplyOn customers Airbus Defence & Space and Deutsche Aircraft, as well as key industry players such as MTU Aero Engines and GKN Aerospace.The author was impressed by the transition at Deutsche Aircraft from a MRO provider for the Do328 to an OEM/integrator for the new D328eco. The aircraft is set to be developed and manufactured in Germany.Following the still heavily Corona-influenced 11th Aviation Forum last year, it was widely evident how important personal contacts are in an industry which is based on collaboration.The date and location for the Aviation Forum 2023 have already been set: December 5 and 6, 2023, then again in Hamburg.
Co-organized by the Berlin Institute Supply Chain Management, the German OEM Deutsche Aircraft hosted the first Aircraft Supplier Summit on November 15 and 16, 2022 at Leipzig Airport.Leipzig is the chosen final-assembly-line (FAL) location for the D328eco, the groundbreaking, forward-looking platform building upon the legendary Dornier Do328 aircraft, for which Deutsche Aircraft is the type certificate holder. The D328eco will rely on Sustainable Aviation Fuel (SAF) as transition to zero-emission flying. Planned by 2030, also hydrogen propulsion will be explored. The FAL construction is planned to start in 2023 already.Key topics of this summit wereHow Deutsche Aircraft and its partners shape the future of sustainable flyingCreating supply chain resilience in a VUCA* worldTechnology-enabled supplier collaborationESG* as a new mindset, towards improved sustainabilityPartnership between Deutsche Aircraft and its suppliersImproving supplier collaboration & supply chain resilienceIt is impossible to mention all the highly interesting keynotes with the all the valuable insights. Therefore, just some highlights from SupplyOn perspective:BoostAeroSpace CEO Rodolphe Péricat explained how the organization contributes to technology-enabled supplier collaboration. Building on a strong industry community, it addresses increased security needs and governs dedicated supplier collaboration platforms, including SupplyOn AirSupply.Deutsche Aircraft has chosen SupplyOn as strategic partner in order to digitally manage collaboration with suppliers and enable structured communication.ThyssenKrupp Aerospace CEO Patrick Marous shared how they foster supply chain resilience with their Supply Chain Control Tower. By considering resistance, forecast, avoidance, inventory and capacity buffers it secures the company’s ability to deliver in a VUCA world.One highlight of the summit for sure was the awarding & contract signature ceremony live on stage for two new suppliers of Deutsche Aircraft: Bucher Leichtbau from Fällanden, Switzerland, and Elbe Flugzeugwerke (EFW), Dresden. The latter is also a SupplyOn customer for AirSupply.Great forum, to be continuedThe Aircraft Supplier Summit was a unique opportunity to exchange with decision makers of Deutsche Aircraft. It was also a good forum for face-to-face discussions with strategic partners and suppliers.To wrap up, attendees were asked to provide their feedback on the event. Among the key take-ways mentioned were insights on supply chain resilience, sustainability, and technology as an enabler. But also partnership and inspiration were important attributes of the conference.The next Aircraft Supplier Summit is already scheduled: Nov 7 and 8, 2023, again in Leipzig. See you then! --*VUCA: volatility, uncertainty, complexity, ambiguity** ESG: environment, social, governance
The Sustainability Kongress, organized by the Berlin Institute of Supply Chain Management, was a high-profile event, with keynotes by the former Minister of Foreign Affairs of Germany and Parliamentary State Secretary in the Ministry for Economic Affairs and Climate Action. Alongside Joschka Fischer and Michael Kellner, various corporate executives and purchasing managers presented their views on sustainability in a world in transition, where time to act is running out. Among the speakers were Schaeffler CEO Klaus Rosenfeld, Deutsche Bahn CEO Dr. Richard Lutz, Airbus Executive Nicole Dreyer-Langlet and BASF Executive Saori Dubourg.Sustainable management is in demandThe key topic of the congress were sustainable business practices. Particularly, it was about the need for embedding sustainability in the corporate strategy as well as a basic attitude for the entire organization. A clear, transparent and measurable sustainability reporting system was called for.Two aspects in particular were discussed for reducing the carbon footprint. One key factor was the impact of the inbound supply chain (i.e. upstream supply chain = "Scope 3") on CO2 emissions. The second central topic was product development aligned to sustainability principles. This considers CO2 emissions both during product use and at the end of the product life cycle, catchword: circular economy.In addition, other important ESG topics, such as diversity and the need for political guidelines for sustainable business, were also discussed intensively.Award-winning sustainabilityIn three categories, the jury of the Sustainability Kongress honored the most innovative concepts, initiatives and companies among all applicants.Sustainability AwardCategory ProcurementWinner: Deutsche BahnFinalists: EnBW, MieleCategory OperationsWinner: thyssenkrupp Material ServicesFinalists: GEA, SiemensCategory R&DWinner: TE ConnectivityFinalists: Knorr-Bremse, BlueMovement BSHBuilding Public Trust AwardCategory Non-Listed CompaniesWinner: Robert BoschSupplyOn sincerely congratulates all winners and finalists, including SupplyOn customers BMW, Bosch, Deutsche Bahn and Siemens.Sustainability at SupplyOnAs the standard for supplier collaboration, SupplyOn supports its customers and their suppliers in achieving their sustainability goals. This applies in particular to Greenhouse Gas (GHG) Scope 3 topics, ranging from surveys on the Company Carbon Footprint (CCF) and the Product Carbon Footprint (PCF) to solution modules with regard to the Supply Chain Corporate Due Dilligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG).
