SBAC annual conference 2007 - delivering innovative supply chains - proceedings of SBAC's annual conference

SBAC annual conference 2007 - delivering innovative supply chains - proceedings of SBAC's annual conference

SBAC's annual conference delivering innovative supply chains was held on the 29 March 2007 at the City of Manchester Stadium in Manchester

The motivation and momentum to create 21^st Century Supply Chains (SC21) programme was established at SBAC's 2006 conference. Now that the programme has moved from the design phase into implementation it was regarded as essential that industry, once again had the chance to discuss the progress and direction of this important initiative.

introduction to the day

Russ Armitage Chairman of SC21 and Director of Strategic Supplier Management, BAE Systems was the host for the day, and described the progress made since the launch of the Action Plan at Farnborough International Airshow in July 2006. He explained how industry had worked together to produce the SC21 Implementation Guide and website and how Lord Drayson helped to launch both to coincide with the first anniversary of Defence Industrial Strategy

AC07_930 Russ Armitage_v1 (2.0 MB)

keynote address

Chris Geoghegan, President of SBAC and Group Executive Director of BAE Systems gave the keynote address focussing on the future of the UK supply chain. He stressed that the UK supply chain had to work smarter and harder to meet both current and future challenges. He said that industry needed to help shape a more supportive public policy at home and work to exploit the opportunities that lowed from the increasing globalisation of the aerospace and defence industries.

Airbus Power8

Dave Micklewright, VP Procurement of Airbus UK introduced Airbus's Power8 programme and explained how it aimed to transform Airbus and its relationships with the supply chain. He made it very clear that the success of Power8 was closely linked to the success and long term survival of Airbus as major player. It was important for the long term profitability of Airbus that decisions were made for the right commercial reasons. The restructuring of Airbus meant that the UK would retain global leadership in wing design and production and it was anticipated that a risk sharing partnership would also give it leading role in composite manufacture.

AC07_1000 Dave Micklewright_v1 (2.3 MB)

why UK supply chains need to change?

Brian Fleet, the Chairman of SBAC's Enterprise Excellence Board and Senior Vice President, Head of Centre of Excellence, Wing - Airbus UK outlined why supply chains needed to change and how SC21 was the right approach to the internal challenges that industry faced. Demand for large commercial aircraft was increasing and UK aerospace had the potential to meet a significant proportion of future demand.

AC07_1030 Brian Fleet_1_v1 (3.0 MB)

Q&A with industry leaders

Chris Geoghegan, Brian Fleet, David Pitchforth from AgustaWestland and Michael Orris from Rolls-Royce participated in a Q&A session with the audience.

All four of the industry leaders felt that the pace of change within the aerospace industry was too slow. There was concern that what had happened in automotive industry supply chain would happen in the aerospace industry. The globalisation of supply chains would increase competition and those unprepared would face major difficulties. All the speakers felt there were threats and opportunities for the SME community from globalisation. There was a need to work on relationships to make the off shoring option less attractive to companies.

The aim of SC21 was to enable companies to become more flexible and allow them to adapt to meet future challenges.

SC21 update

Russ Armitage gave an update detailing the work that was being done to implement SC21 in 2007. He stressed that there was nothing new in what SC21 is trying to do, but it was trying to do it in a more effective and co-ordinated manner.

AC07_1200 Russ Armitage SC21 update_v1 (2.7 MB)

primes and implementation

Peter Hogg, Project Director of SC21 and Director Procurement Strategy BAE Systems, gave a quick outline of the ways that companies could get involved in SC21. He explained that a company did not have to wait to be asked by a prime, there were three ways into the programme.

Customer lead, where a company asks its supplier to join a supplier development programme.
Regionally lead, where a regional partner (trade association) asks a company to join its regionally based supply chain development programme.
Self starter, where a company implements SC21 because it makes good business sense.

On the customer lead, the key customers (primes and tier 1 companies) are close to agreeing the first 120 or so companies to be developed under the first tranche of SC21.

There then followed a discussion on how the major aerospace companies in the UK were implementing SC21.

Peter Hogg, SC21 project director
Russ Armitage, BAE Systems plc
Stephan Cowan, Bombardier Aerospace Belfast
Gary Collyer, General Dynamics UK Ltd
Bob Gee, SELEX Sensors and Airborne Systems UK
Lawrence Jenkins, Rolls-Royce PLC
Michael Jones, Smiths Aerospace

Questions focussed on whether the SC21 messages were getting down to the transactional people. The response was that it would be, but that in larger organisations it would take time. However the primes recognised that they had to get more responsive to the requirements of the customer, in particular the Ministry of Defence and Urgent Operational Requirements from the armed forces.

AC07_1215 Peter Hogg_v1 (2.3 MB)

panel session 1: SME involvement in SC21

Neil Mackay Chairman of North West Aerospace Alliance lead a panel discussion on how SME's could get involved at the local level and what could be achieved. The key messages were:

Nothing really new, all about alignment of programmes at a national level.
Don't stop what you're doing, keep going and check whether aligned.
Work together with your regional partner and key customers.
If you haven't joined already, sign up.

SBAC annual conference_1415_SME involvement Panel (9.6 MB)

panel session 2: what has been achieved?

Michael Jones, VP Smiths Aerospace lead the panel discussing what had been achieved so far using SC21 methods. Though still early days the methods were starting to produce results.

SBAC annual conference_1415 Achievements Panel (3.6 MB)

bringing it all together

Brian Fleet brought the day to the close, stressing that 2007 is a critical year for SC21 and its implementation. All companies needed to be involved and they should look to make a real commitment. This meant be willing to change at all levels in the supply chain.

AC07_1515_Brian Fleet - close_v1 (2.0 MB)

If you haven't signed up already for SC21 click here

SBAC annual conference 2007 - delegate list (91.4 KB)

panel questions from SBAC annual conference 2007 - delivering innovative supply chains