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Supplier Evaluation at EADS

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by

Aastha Khanna

on 31 October 2013

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Transcript of Supplier Evaluation at EADS

Supplier Evaluation at EADS
Presented by:
Ivan Zarikov
Ji Eun Kim
Aastha Khanna

European Aeronautic Defence and Space Company
Aerospace Industry
Suppliers inIndustry
Industry Analysis
Aerospace Industry
­Oligopolistic market

Main competitors:
The Boeing Company
­Lockheed Martin Corporation
BAE Systems plc.
EADS in the
Industry
One of the largest players
Sales volume- €30 million
New ways to enter- Asia and South America

Suppliers in the Industry
Provide products that are:
Durable
High quality- Meet costly quality audit process
Meet the certification requirements- customers like FAA

Suppliers = Important source of competitive advantage
EADS Suppliers
Bring in the Supply Chain!
EADS Supply Chain
Suppliers
EADS Groups
Customers
EADS Groups
Suppliers
Customers
Suppliers
EADS Groups
Customers
Suppliers
EADS Groups
Customers
­
Some of EADS's customers:
Japan Airlines
­Royal Australian Navy
­LATAM Airlines
­China Eastern Airlines
­Air India
­Qatar Airways
­Saudi Arabia Airlines
­U.S. Army
­Khrunichev Space Center
UTair
Vision & Strategy
Evaluation
Structure
Supply Vision of EADS:
To achieve competitive advantage by winning, integrating and developing the world’s best suppliers
Strategy aimed at:
­Procurement marketing
Risk and opportunity management
Outstanding product complexity
Sourced from Europe and North America
Supply volumes in Asia and South America almost negligible

Uneven distribution of sales volume
Question 1:
If you were in the position of John Summers*, what problems and weaknesses could you identify?
* John Summers- EADS­ Head of Supply Management Strategy at EADS
Questions
Weaknesses:
­Weak sales position in Asia and South America
Not considering some dimensions in the supplier evaluation system
­
Problems:
­Complexity of products
Industry unable to handle requirments
Ineffective use of their resources and supplier availabilities
Uneven distribution of their sales volume
Q1 Answer
Question 2
Suppose you were John Summers and you had prepared a list of suggested improvements for discussion at the Procurement Directors Board meeting. Discussion of other agenda items at the meeting however took longer than expected, with the result that John now has only 10 minutes (and not 30 minutes) to present his ideas. Given this time constraint, what three steps would you prioritise for discussions at the meeting?
Q2 Answer
Improving Sales position in Asia and South America:
Country screening
Competitive intelligence
­Supplier screening
­Organise company visits to the suppliers headquarters and manufacturing plants
Make new supplier evaluation criteria’s for current and potential suppliers
­Current framework outdated- Aggregated performance
Compare on last work with similarities
Criteria for Ethics
Country sourcing quotas
Local focal points- E-procurement, Supplier relationships, Horizontal integration
Full transcript