Value Stream Thinking through integration

Working exclusively in aerospace logistics has taught us a thing or

two over the years. The one big thing that stands out is:

The customer only cares about the “entire product”, as a whole entity…

…that’s not just the manufactured component, but the whole service that delivers the “entire product” to them

What this means… is that the value

of any component is made up of the

entire series of process steps, within

the business and it’s supply chain…

….not just it’s own internal

manufacturing processes!

When silos exist, or walls between

those processes, it disrupts the flow

of value and creates inefficiencies

and waste

…and unhappy customers

We are value stream thinkers.We work with our customers to ensure that the

whole series of processes – your

manufacturing and our logistics - work together

to deliver value to your own customers.

This means…an integrated

approach: A Partnership.

We believe that collaboration

and cross functional problem

solving and continuous

improvement - our team

working with your team - is only

possible in Partnership

manufacturing

logistics

This means…an integrated

approach: A Partnership.

…and that Partnership working

is the key to success in today’s

demanding and dynamic

aerospace industry.

manufacturing

logistics

A Partnership requires a

common language…

lean

Lean logistics, just like lean

manufacturing, means

increasing flexibility, reducing

cost, time and inventory, and

improving value

COST & TIME

VALUE

reducing time & costs

...using lean techniques, we help our customers to

eliminate those processes (from their logistics) that do not

deliver value

Our approach to lean…

increasing flexibility

…we help our customer to meet fluctuations in supply

and demand & fast turnaround times in their supply chain

by configuring our own resources flexibly to meet their requirements

reducing inventory…our customers only use our service on an order by order basis

improving product value

…by increasing flexibility, improving quality and reducing

costs, we make sure that the customer doesn’t pay for

organisation inefficiency and waste.

Our approach to lean…

improving quality

….we work in partnership with both our suppliers

and customer to continuously review and improve product and service quality

So, how we do it?…we start by understanding how customer value is delivered…

Increasing flexibility

Reducing inventory

Reducing time & costs

Improving quality

= Improving product value

Value Stream thinking

4. On-going

measurement &

improvement

3. Create future state

in adding more value

2. Identify current

state in delivering

value

1. Understand value

delivered to

customer

…and is completed by agreeing

clear improvement Key

Performance Indicators, in order

to deliver, and increase, the

specified value

We work across the Aerospace Supply Chain

Raw Materials

Suppliers & OSP’s

Sub-component

Manufacturers

Principal Component

Manufacturers

Engine Module

Suppliers

Engine Module

Suppliers

Aircraft OEMs Aerospace

Engines OEMsRepairs &

Maintenance

OEM

TIER 1:

Systems

Integrator

TIER 2:

Sub-assembly

manufacturer

TIER 3:

Make to print

components

TIER 4:

Materials &

Processes

Distribution:

• Express delivery of parcels, pallets across UK,

Europe and the world,

• Reverse flow of re-usable commodities (e.g.

packaging flight cases)

Our Integrated Services cover…

Managed Logistics:

On site supply chain services such as goods

receiving, packing, dispatch and store management

Commodity buyer of Packaging as a single

source:

• Procurement of consumable and reusable

packaging from flight cases, card and wood.

• Packaging refurbishment

Our Integrated Services cover…

Warehousing:

• Storage of high value goods on a temporary or long

term basis

• Consolidation and delivery of batch sensitive parts

fed from multiple vendor locations across the world

…and we flex our services to

respond to our customer’s

requirements of delivering value

to their own customer,

wherever they are in the supply

chain…

Case Study 1: UTC, packaging supply, storage & re-supply

Raw Materials

Suppliers & OSP’s

Sub-component

Manufacturers

Principal Component

Manufacturers

Engine Module

Suppliers

Engine Module

Suppliers

Aircraft OEMs Aerospace

Engines OEMsRepairs &

Maintenance

OEM

TIER 1:

Systems

Integrator

TIER 2:

Sub-assembly

manufacturer

TIER 3:

Make to print

components

TIER 4:

Materials &

Processes

Services:

• Distribution

• Warehousing

• Commodity

Buying

Tactic 1. Understanding value delivered to customer

Tactic 2. Identified current state in delivering value

Tactic 3. Create future state in adding value

The difference we made…

Results

• We reduced stock holding value from 65K to 43k

• We created over a 1,000 sq ft of space for use by the client

• We took over the commercial role of ordering from the UTC supplier

base of 8 with a clear objective to work closely with each supplier to

improve quality and supply

• We entered into a continuous improvement programme

• Happy customer who was able to expand their operational footprint

without need to build or outsource

Case Study 3: CDS, improvement to delivery driver

communication and final proof of delivery

Raw Materials

Suppliers & OSP’s

Sub-component

Manufacturers

Principal Component

Manufacturers

Engine Module

Suppliers

Engine Module

Suppliers

Aircraft OEMs Aerospace

Engines OEMsRepairs &

Maintenance

OEM

TIER 1:

Systems

Integrator

TIER 2:

Sub-assembly

manufacturer

TIER 3:

Make to print

components

TIER 4:

Materials &

Processes

Services:

• Distribution

The difference we made…

Results

• The cycle time from Job entry to collection time improved on

average by 45mins

• Deliveries could be tracked by the customer without the need to

contact despatch

• Proof of delivery was instant leading to a time saving of 15 hours

per month

• Proof of delivery signatures could be e-mailed to our customer

extending agile response time beyond our customer

• Historical delivery data was used to create a fixed collection and

delivery routes

• A monthly saving of £2,800 due to better utilisation of the fleet

Tactic 1. Understanding value delivered to customer

Tactic 2. Identified current state in delivering value

Tactic 3. Create future state in adding value

Our History…

2004

ON LOGISTICS

FORMED BY NICK

BENNETT

FOUNDER AND

CURRENT

OWNER

2006

• NEW BUSINESS VALUE

PROPOSITIONS INTRODUCED

SPANNING DISTRIBUTION AND

WAREHOUSING

• OPENED OUR FIRST WAREHOUSE

IN TAMWORTH

2005

FIRST

AEROSPACE

CONTRACT

SIGNED

2008

FURTHER

EXPANSION OF

PARCEL AND

PALLET

DISTRIBUTION

BEYOND THE

MIDLANDS

2007

SECOND

AEROSPACE

CONTRACT

SIGNED

ON LOGISTICS WON

IT'S THIRD SITE

AEROSPACE

CONTRACT

2010 2012

SECOND WAREHOUSE

OPENED TO MEET THE

INCREASING DEMAND FOR

FULFILMENT

2013

• AN INVESTMENT OF

£50,000 INTO A NEW

WAREHOUSE

MANAGEMENT SYSTEM

• AN INVESTMENT OF

£5,000 INTO PORTABLE

VAN TECHNOLOGY

2014

• ALL

AEROSPACE CONTRAC

TS WERE RENEWED

AND SIGNED

• PLACED OUR FIRST

ORDER OF PACKAGING

FOR RE-SALE INTO

AEROSPACE

• JOINED THE MIDLAND AEROSPACE

ALLIANCE AND ADS

• ISO9001 JOURNEY STARTED

• REFURBISHED OF WAREHOUSE TO

MEET INCREASING DEMAND FOR

AEROSPACE STORAGE

• NEW WEB SITE LAUNCHED

T H E F U T U R E2015

• FURTHER CONTRACT

EXTENSIONS WITH MAJOR

AEROSPACE PROVIDERS

• COMMENCED (DLF) OF RAW

MATERIAL INTO AEROSPACE

MANUFACTURING VALUE

STREAMS

• COMMENCED BS

OHSAS18001 JOURNEY

• WON FURTHER

PROCUREMENT BUSINESS

• CONSOLIDATED OUR

POSITION AS A BEST IN

CLASS AEROSPACE

INTEGRATOR

Accreditations and associations

A final thought…

“There are so many men who can figure out costs, and so few who can measure value.”

Shigeo Shingo

(Japanese industrial engineer considered the

world’s leading expert on manufacturing

practices and the Toyota Production System)