EADS new harmonised sourcing strategy achieves about EUR 35 million in 2001 synergy savings
Amsterdam, 04 April 2001
More than half of the EUR 60 million synergies, EADS European Aeronautic Defence and Space Company is to achieve in 2001 will be provided by a harmonised sourcing strategy. The new sourcing strategy was implemented at the beginning of the year.
"This new strategy goes far beyond a traditional procurement policy and redefines the relationship with the EADS suppliers," EADS Chief Executive Officer Rainer Hertrich explained to 125 managers attending a procurement conference. "We need a new framework of cooperation between the suppliers and EADS to successfully implement demanding projects such as the A380. EADS' harmonised sourcing strategy is essential to achieving cost-effectivness, while still ensuring highest quality and innovation."
"Efficient suppliers will be a key factor in our future market success. Through strategic supplier partnerships we will involve suppliers more strongly and give them more responsibility in our projects," explained Rainer Hertrich. At the same time, by speaking with a single "EADS voice" our business units will bring more weight into their negotiations with suppliers."
For EADS, a harmonised sourcing strategy is important in creating added value for all EADS divisions and business units. With this strategy the company is leading role in shaping the suppliers industry which has changed in recent years as the result of mergers and industrial consolidation. "At the same time, we address the customers' demand of best value for money," Hertrich said. "By applying a strategically planned sourcing policy, EADS procurement is contributing enormously to integration and achievement of the value growth targets."
The EADS sourcing strategy has four central aspects. Demand is harmonised and standardised across the borders of all divisions and business units. The supplier markets are under constant observation, especially the markets lying in regions which EADS sees as its future markets. In addition EADS is striving to set up mutual beneficial risk and revenue sharing partnerships with its suppliers. In doing so, important suppliers are to receive support in their entrepreneurial development.
Rainer Hertrich describes the future cooperation among the various sourcing areas within EADS in the following way: "Headquarters will assume the role of strategic architect coordinating the sourcing policy of the individual EADS divisions and units and determining the general terms for coordination with the EADS suppliers. The procurement sections of the individual business units will be responsible for definition and implementation of their specific sourcing policy, taking their specific business goals into account. The success of the EADS sourcing policy depends on consistent implementation by the business units."
With revenues amounting to EUR 24.2 billion, EADS is the largest aerospace company in Europe and the third largest such company in the world. EADS employs a workforce of approximately 87,000.
Points of contact:
Dr. Rainer Ohler Tel. +49 89 607 34 235
Miguel Sanchez Tel. +34 91 585 77 89
Roland Sanguinetti Tel. +33 1 42 24 24 26
www.eads.net
