Sourcing

Efficient Sourcing

Efficient Sourcing activity is a crucial aspect of supply chain management. It involves identifying, evaluating and selecting suppliers capable of providing the goods and services needed to meet the needs of your organization. Capitalizing on the information collected is essential in a database to improve the efficiency of purchasing functions and support other internal organizations such as

1/ Purchasing to help commodity managers (new or alternative supplier)
2/ Engineering, to find a company with a specific and mature technology, during a development including knowledge of start-up activities
3/ Projects, to quickly find a replacement solution for a failing supplier (technical, political or financial problem)

4/ Sales teams, to find partners in the country considered to participate in the program with the need to well know the players. (Market Access by developing offset or georeturn actors)
5/ The company’s strategy. in order to identify a company to buy.

Here are some important points on supply chain procurement for which good sourcing is important:

International sourcing respecting offset or geographic return constraints. This type of sourcing is mainly guided by aeronautics or defense contracts in order to generate industrial activities in the country of the customer, often a state. We then speak of offset for aerospace and defense or geo-return for space according to the applicable rules to ESA (European Space Agency). This represents a percentage of the contract value to be awarded to various indusries in the customer country. The obtained data could also be used for company business development by identifying reliable partners in the potential customer country. The integration of these informations could be essential for winning competition.

Strategic sourcing: this is a methodical approach to supply chain management that focuses on optimizing the procurement process. The sourcing activity aims to reduce costs, improve quality and ensure on-time delivery by establishing strong relationships with reliable suppliers.
Sustainable sourcing: this involves selecting suppliers who adhere to environmental and social standards. Sustainable procurement helps organizations reduce their environmental footprint and promote ethical practices throughout the supply chain. There may be a need to find a new “green” technology that emits less carbon with equivalent technical characteristics which is an important advalup‘ strategy axis.
Risk management: Effective procurement includes assessing and mitigating risks associated with suppliers, such as geopolitical issues, supply chain disruptions, and financial difficulty. Substitution of an ITAR product for certain exports to specific countries may be mandatory.
Digital transformation: Many organizations are investing in digital tools to improve their procurement processes. These tools can improve collaboration with suppliers, streamline procurement activities, and provide better visibility into the supply chain.
Cost optimization: By carefully selecting suppliers through good sourcing and negotiating favorable terms, companies can significantly reduce their procurement costs and improve their overall performance.

advalup provides a lot of sourcing support to various international customers with important successes.

meeting with supply chain and engineering
Meeting Sourcing with Supply Chain and Engineering

Market Intelligence Needed

For developing your business and your competitivity, the market intelligence is essential. advalUP could present this function and support its internal implementation, including information  capitalisation.

 

advalUP has a strong experience in capitalizing on all the information collected during trips, press reviews or participation in international events. Knowledge of the market and its players is essential to develop its activity and competitiveness.

advalup is part of the largest European aerospace competitiveness cluster Aerospace Valley based in Toulouse with more than 850 members and numerous projects. In particular, a newsletter is distributed every day to know the main information on the activities:

1/ Aeronautics, commercial and defence
2/ Space, satellite and launcher,
3/ Drones and new uses,
4/ Propulsion and on-board energy,
5/ On-board and communicating systems,
6/ Structures, materials and processes.
On the other hand, advalup benefits from significant data with an extensive international network within companies, government or space agencies, competitiveness clusters and other industrial associations.

Thierry Gardet, the founder of advalup, implemented this approach within a large international aeronautical group. Participation in herefater international events, meetings with industrial and administration representatives from different countries has allowed us to better understand the market evolution (new actor, new technology, strategic information,…).