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Supplier Evaluation at EADS
Transcript of Supplier Evaluation at EADS
Ji Eun Kim
European Aeronautic Defence and Space Company
The Boeing Company
Lockheed Martin Corporation
BAE Systems plc.
EADS in the
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:
High quality- Meet costly quality audit process
Meet the certification requirements- customers like FAA
Suppliers = Important source of competitive advantage
Bring in the Supply Chain!
EADS Supply Chain
Some of EADS's customers:
Royal Australian Navy
China Eastern Airlines
Saudi Arabia Airlines
Khrunichev Space Center
Vision & Strategy
Supply Vision of EADS:
To achieve competitive advantage by winning, integrating and developing the world’s best suppliers
Strategy aimed at:
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
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
Weak sales position in Asia and South America
Not considering some dimensions in the supplier evaluation system
Complexity of products
Industry unable to handle requirments
Ineffective use of their resources and supplier availabilities
Uneven distribution of their sales volume
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?
Improving Sales position in Asia and South America:
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Current framework outdated- Aggregated performance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