Leading aerospace partner Latécoère decided to streamline and digitally transform its core procurement processes using the industry solution AirSupply. This helped to harmonize and standardize procurement methods within the group, to collaborate with suppliers more efficiently and to react far more flexibly to dynamically changing sourcing needs in these volatile times.
Challenge
Both Aerostructures and Interconnection Systems branches of the Latécoère group were looking for a standard solution to ease electronic purchasing. Many of the group’s suppliers were still relying on email communication for purchase orders. Order confirmations and order changes thus resulted in a tedious, largely manual and error-prone workflow.
Solution
To resolve this and to increase operational efficiencies, the company wanted to tap the full potential of end-to-end digitized, seamless electronic processes. Latécoère had already been using AirSupply sellside with numerous aerospace customers. Consequently, the company made the strategic decision to also implement the solution for the collaboration with its own suppliers. “It’s the leading collaboration platform in the aerospace industry”, reasons José Soriano, Procurement Project Manager at Latécoère Aerostructures, who had previously consulted other AirSupply customers such as Dassault Aviation and Liebherr for their experiences with the solution.
The project kicked off in 2019 and involved the key users in both Latécoère branches, Aerostructures and Interconnection Systems, across subsidiaries in France, the Czech Republic, Brazil and Mexico. Later on, Bulgaria joined in as well. In a first step, the project team defined the new workflow and harmonized procurement processes for the entire group.
For a speedy deployment of these newly standardized processes, Latécoère focused first on the AirSupply core modules Forecast, Purchase Order and Order Confirmation as well as Goods Receipt. After extensive user acceptance tests supported by SupplyOn, the new solution went live in January 2020 and supplier rollout was started.
The coronavirus pandemic and its economic turbulences in 2020 proved to be a major challenge for the entire aerospace industry. Thanks to AirSupply, however, Latécoère was able to navigate these turbulent times making the most of the collaborative platform. The volatility in the aerospace industry in 2020 resulted in frequent changes in sourcing needs. “AirSupply has proved to be very beneficial for rescheduling our demands”, explains José Soriano. “We can now collaborate far more efficiently with our suppliers on the purchase order.”
Outlook
Latécoère aims to connect its 100 largest suppliers to AirSupply. In parallel, the AirSupply implementation will also be extended to Despatch Advice within the course of this year and next. In a later step, Latécoère also plans to deploy the On-time Delivery (OTD) module once supplier rollout is further advanced.
Benefits
- Harmonized and efficient digital supply chain collaboration with a group-wide common process and methodology
- Exceptional flexibility and response through all the ups and downs of a ‘black swan’ event such as the coronavirus pandemic
- Improved communication with suppliers with an up-to-date transparent picture on both sides regarding demands, orders and order changes
- Enhanced responsiveness to changes in demand, which helps to prevent potential delivery issues
- Full traceability of an order all the way to the goods receipt
- Elimination of manual workflows, such as re-entering information into different systems, thanks to end-to-end digitized processes and the error free that comes with that
- Established industry solution: AirSupply is tailored to the specific needs of the aviation industry and well-perceived among customers and suppliers. The continuous advancement of the solution is driven by an industry consortium
AirSupply is the leading collaboration platform in the aerospace industry. Thanks to the solution, we have standardized and increased the efficiency of our procurement workflows within the Latécoère group. Visibility and supplier collaboration have improved considerably. Adapting and rescheduling demands is now very easy and comfortable.
José Soriano, Procurement Project Manager at Latécoère Aerostructures
About Latécoère
With 100 years of experience in the aeronautics industry, Latécoère is a leader in the field of aerostructures (fuselage sections and doors) and interconnection systems (wiring, electrical furniture and onboard equipment). The international group is involved in all aeronautic segments (commercial, regional, business and military aircraft) and covers the entire value chain from design to manufacturing, assembly and installation to MRO. As of December 31, 2020, Latécoère employed 4,172 people in 13 countries.
