marc vibes director procurement joe marcheschi director
TRANSCRIPT
International Aerospace & Defense Trade Summit
How to Do Business with Airbus?
Groton, CT
November 2015
November 2015Aerospace & Defense Connecticut
Connecticut
Marc Vibes – Director Procurement
Joe Marcheschi – Director Procurement
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Airbus Group at a glance
November 2015Aerospace & Defense Connecticut
- Airbus Military
- Cassidian
- Astrium
- Eurocopter- Airbus Commercial
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Airbus Group North America
•Airbus Group ~ 50
•Airbus Americas ~ 1300
•Airbus Defense & Space ~ 1200
•(Divestments in progress) ~ -750
•Airbus Helicopters ~ 1000
•Vector Aerospace ~ 1100
•STELIA Aerospace ~ 450
~50 Locations
~5100 Employees / Contractors
~3500 USA
~1600 Canada
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Airbus in the US
November 2015Aerospace & Defense Connecticut
• Catalyst for $15.8 billion in annual aircraft related expenditure in the USA
• Supporting over 262,000 jobs
• Suppliers in over 38 states
• Five primary Airbus sites, employing over 2,000 employees
A strong and growing physical and economic presence in the USA
• 2016 – Mobile FAL to deliver first American assembled A320
Headquarters
Herndon, VirginiaAirbus Spares Center
Ashburn, Virginia
Airbus Training Center
Miami, FloridaAirbus Engineering Center
Wichita, Kansas
Airbus Engineering Center Mobile, Alabama
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Airbus expands in the US with an A320 family Final Assembly Line
2013
Start of construction
2015
Start of aircraft assembly
2016
First delivery
2018
40 to 50 deliveries
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Procurement Organisation - worldwide coverage
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Sourcing Office
North AmericaSourcing Office
India and
Middle East
Sourcing Office
China and
East Asia
Central &
Operational
Teams
More than 2,700 Procurement employees representing
37 nationalities located worldwide,
looking after more than 8,500 Suppliers (excluding Airbus Military).
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Procurement organisation: specialised and performance-oriented
November 2015Aerospace & Defense Connecticut
Procurement
A350 XWB Procurement Procurement
Cabin
Procurement
Propulsion
Systems
Procurement
Operations
Airbus & Airbus Group Procurement Strategy & Services
Contracting
domain
Operational
domain
Procurement Compliance Management
Governance and
support units
Series Programmes Procurement
CommoditiesProcurement
Aerostructure
Procurement
Equipment/Systems
& Support
HR
Finance
Quality
Procurement
Dedicated Procurement
governance and support functions
Overall responsibility
for business with suppliers (TCO)
End-to-end supply chain operations
management
Specific & Cross-functional/divisional
activities & links
Airbus Group General
Procurement *
Airbus Military
Procurement
Procurement
Material and Parts
* Shared service for the whole Airbus Group
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Multi-Functional Teams (MFT’s) leading sourcing & contracting activities
November 2015Aerospace & Defense Connecticut
Engineering
Procurement Sub-Commodity (Lead)
Manufacturing Customer Services
Manage
Procurement
process for a
dedicated
portfolio
Finance /
Costing
Programs
Supply Chain
Management
Each Commodity is composed of sub-commodities leading Multi Functional Teams (MFT’s) in charge of
managing the Procurement process for dedicated products/services (for example hydraulics, wings…)
52 MFT’s within
Procurement
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Contracting domain - Procurement Marketing
November 2015Aerospace & Defense Connecticut
Define procurement & sub-commodity strategy
Supplier selection & contracting
Supplier monitoring & contract management
Control suppliers
Order and receive productsFrom strategy definition...
...to product support
Through Procurement Marketing activities, we support the procurement process end to end for USA, Canada and Mexico for Airbus Group
US CSO
Events/Networking
Request for an RFI*
RFI sending*RFI completion
and sending
Supplier graded and database
update
Reception confirmation
BU request reception from
GSNRFI sending*
BU request answer
Systematic step
RFI completion and sending
Supplier
Additional step if RFQ is launched
Research for potential suppliers
Need for additional information
Step created in August 2011
RFI assessment and database update
Interesting supplier pre-
selection
Supplier approved for
further investigation
Supplier phone call
Supplier meeting @ Herndon
Supplier Visit/SCORE
assessment
Supplier evaluation
form completed
Supplier database and supplier profile
update
N.A. Procurement - Process
Call for Tender
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Procurement quality and supplier development domain
Aerospace & Defense Connecticut
Airbus supports its new and existing suppliers by providing “field engineers” on site to help them achieve
qualification, delivery performance improvement, industrial optimisation
and compliance with Airbus’ and external regulations.
PRE-ASSESSMENT of potential new suppliers
QUALIFICATION and re-qualification of suppliers
Product and Quality AUDITS
Industrial PROCESS CONTROL ASSESSMENT (combination of quality and supply chain)
CAPACITY contingency assessment
Supplier QUALITY continuous Improvement (SQIP Programmes)
November 2015November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Operational domain – Supplier Development
Define procurement & sub-commodity strategy
Supplier selection & contracting
Supplier monitoring & contract management
Control suppliers
Order and receive productsFrom strategy definition...
...to product support
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
General Procurement Domain (AGGP)
November 2015Aerospace & Defense Connecticut
AGGP is one of the Airbus Group shared services which mission is to provide to all Airbus
Group divisions the goods and services of the general procurement scope
The objective is to satisfy the needs of the divisions in terms of delivering on time, on
quality and at the best price, while adding value to the business through the commodity
expertise and know how.
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Contracting domain – General Procurement
November 2015Aerospace & Defense Connecticut
Define procurement & sub-commodity strategy
Supplier selection & contracting
Supplier monitoring & contract management
Control suppliers
Order and receive productsFrom strategy definition...
...to product support
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
Globalize & consolidate the supply chain
STIMULATE the competition within the supply base
FEWER and BIGGER suppliers with ENHANCED responsibility
L4L (Local for Local) will remain, key support for a Final Assembly Line
EARLY INVOLVEMENT of major suppliers in joint development teams including R&T
GLOBAL SOURCING* challenges for both Airbus and its suppliers
Develop Suppliers to world class status
PRE-ASSESSMENT of potential new suppliers; sustainable QUALIFICATION of suppliers
Product and process quality AUDITS
INDUSTRIAL PROCESS CONTROL ASSESSMENT (quality and supply chain)
RISK MANAGEMENT culture
*Global sourcing: international sourcing = Non-European countries
Airbus Procurement Drivers
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
What are we looking for in potential suppliers
Quality accreditations, AS9100, NADCAP, etc.
Already working for an Airbus Group Business Unit or other aerospace OEM’s
Customer recognition, GOLD, 5 STAR, supplier of the year, etc.
Strong in commercial work
Financially stable and ability to invest, management and functional structure (GRESS-
GRAMS)
Strong manufacturing engineering capabilities
Innovative products and companies
Vertical integration
Global presence and core capabilities aligned with current needs (dynamic process
in nature)
November 2015Aerospace & Defense Connecticut
Direct with Airbus as T1 (GRESS-GRAMS)
As a T2 to a T1 (two main paths)
New programs – Approval cycle 6+ months
Tow – Approval cycle approximately 1 year
It is extremely important to understand your Tier… and
Common ways to enter our supply chain - flying parts
GRESS-General Requirements for Equipment and System Suppliers
GRAMS-General Requirements for Aerostructures and Material Suppliers
Not everyone has to be a T1!
November 2015Aerospace & Defense Connecticut
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Airbus/Supplier joint efforts to meet customer demand
November 2015Aerospace & Defense Connecticut
Make it right the first time
Ensure sufficient capacity
Reach and sustain excellent performance
Be creative and propose solutions for cost optimisation
RAMP-UP
ON-TIME
DELIVERY
QUALITY
COST
02.2015
Airbus Group North America Procurement Contact Information
• Title your email response:
• “Goods & Services RFI response” for all non-
flying goods and services.
• “Flying Parts RFI response” for all products that
will actually be installed or used on an aircraft.
• Return the RFI document and company presentation
via email to:
• Airbus will review your company’s submittal and will
record it in the North America Database.
• Note: Submitting an RFI does not guarantee inclusion
into any future Request for Quotes.
Airbus North Americas Headquarter: 2550 Wasser Terrace, Suite 9100 ,Herndon, VA 20171 USA
Process to follow:
• You must obtain a Request For Information (RFI)
document by sending an email to:
• Answer all the questions on the RFI document.
• Prepare your company presentation.
November 2015Aerospace & Defense Connecticut
Useful sources of information
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
http://www.airbus.com/tools/airbusfor/suppliers/
November 2015Aerospace & Defense Connecticut
Click here
to learn more about the Airbus Procurement
organization and major suppliers.
All sub-commodities for Airbus Commercial are
shown
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document.
November 2015Aerospace & Defense Connecticut
© AIRBUS Americas. All rights reserved. Confidential and proprietary document. This document and all information contained herein is the sole property of AIRBUS Americas. No intellectual property rights are granted by the delivery of this document or the
disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of AIRBUS Americas. This document and its content shall not be used for any purpose other than that for which it is supplied. The
statements made herein do not constitute an offer. They are based on the mentioned assumptions and are expressed in good faith. Where the supporting grounds for these statements are not shown, AIRBUS Americas will be pleased to explain the basis thereof.
AIRBUS, its logo, A300, A310, A318, A319, A320, A321, A330, A340, A350, A380, A400M are registered trademarks.