Proven Cost Control Strategies to Achieve Optimal Pricing and Service Levels from Your Parts Manufacturers
Typically, 50-70% of an OEM’s product costs are derived from parts/assemblies furnished by external suppliers. Of those costs, supplier procured material inputs – including bars, sheets, plates, fasteners, etc. – accounts for 30-60% of the purchased parts cost.
For a company that buys $200 million in machined parts, that amounts to $70 million being left on the table.
One of the greatest challenges OEMs face in keeping their supply chain costs down is their lack of control over the raw materials that go into parts purchased from outside suppliers. While the individual costs associated with each individual part may be miniscule, collectively these costs significantly impact the bottom line.
Raw Material Aggregation has proven to be an effective methodology for OEMs to identify and leverage all of the material-inputs that contribute to the total product cost.
During this in-depth and engaging Webinar session, we will evaluate and demonstrate how aggregation of raw materials may be a viable methodology for dramatically improving the efficiency of your supply chain operations.
You will learn how to:
- Gain control of your material input costs
- Eliminate excess or obsolete material input inventories
- Reduce lengthy material input lead times
- Minimize delivery delays and production errors
- Eliminate redundant material input standards
- Eliminate unresponsive material input sources
Manager, Raw Material Commodity
Cessna Aircraft Company
Curt is a supply management professional with 13 years of aviation experience, beginning his career at Cessna in 2001. He has held positions of increasing responsibility in Quality, Business Administration, Six Sigma, and Supply Management. He currently has overall responsibility for Raw Materials procurement at Cessna Aircraft. He earned a degree in Biochemistry from Wichita State University and a Masters of Business Administration from Baker University. He serves as President of ISM-Wichita and is a Certified Textron Six Sigma Black Belt.
Aptium Global/Metal Miner
Lisa is co-founder and managing director of Aptium Global Inc. She has more than 15 years of experience in direct materials and metals sourcing and is regarded in the manufacturing world as a thought leader, influencer, and an advocate for privately-held U.S. manufacturers. Lisa cut her teeth in semi-finished aluminum physicals trading, and she previously served as one of the highest ranking female supply chain executives for both Arthur Andersen Business Consulting and Deloitte Consulting. Most recently, she pioneered the concept of Lean Sourcing, an approach to direct material cost reduction which is based on the concepts of strategic sourcing and lean manufacturing. Lisa earned her MPA from New York University, where she received a Robert F. Wagner Graduate School of Public Administration Fellowship. An expert in global trade and supply chain issues, Lisa is INCOTERM certified and holds a Six Sigma Black Belt.
Trevor is President of Supply Dynamics, a wholly owned subsidiary of $2.7 B O’Neal Steel, North America’s largest privately owned metals service center. Supply Dynamics utilizes proprietary processes and IT solutions to provide OEMs with real time visibility and control over the materials that go into their finished parts - especially the materials that go into the parts made by their Tier 1 and Tier 2 suppliers. Mr. Stansbury has been employed by, or consulted with, some of the largest aerospace and industrial companies in the world.
Strategic Sourcing Manager-ES
Krishnan is responsible for supporting the Strategic Sourcing Teams of Energy Services – Optimization Control and Oil Field Technology, Environmental Services, Transmission and Distribution, Motors & Controls and Core Power Generation at GE Energy. He holds an MBA from the Xavier Labor Relations Institute in Jamshedpur, India.