Focus On Supplier - Thales
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Transcript Focus On Supplier - Thales
Thales and SC21
IAQG/SC21General Assembly Meeting, 22 October, York
Thales serves three markets
Thales around the world
DEFENCE (50%)
68,000 employees
in 50 countries
Serving the defence, aerospace and
security markets
Air ● Land ● Naval ● Joint
More than £11bn revenue
AEROSPACE & SPACE (25%)
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SECURITY (25%)
This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Thales UK
Thales UK participates in all three market segments
In top five leading suppliers to UK MoD
4,000 engineers & technicians
90% qualified to degree level or above
Invested more than £3bn in UK over last 10 years
90% of sales to the MoD are UK sourced
2009 sales: £1.5bn
Backlog of orders circa £4bn
60% turnover from defence: 40% from civil
2008 was 120th anniversary of Thales in the UK
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This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Thales UK
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This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
SC21 Activities
One of the 19 founder signatories in 2006
Actively involved in the original design of the SC21 tools and
techniques
Hold seats on both SC21 steering committees (ADS/Scotland)
Thales led Tranche I implementations, 7 suppliers
Active Electronics, ACW, Aeroflex, Astute, Kenard, Paramount Precision, Paramount
Panels
Four awards secured to date; ACW – Silver, Astute Electronics – Bronze; Active
Electronics – Bronze; Paramount Precision - Bronze
Seven further Thales led Tranche II companies being taken through
programme, all have published CSIPs
Chess Dynamics, ITT ICS UK, Di-Spark; Labtech Microwave, Merlin Flexible Circuits,
New Chapel Electronics, Ilford Engineering
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This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
SC21 Activities
Regional cluster approach in conjunction with RDA’s adopted as Thales
preferred approach to widen deployment throughout Thales UK
supplier base
Thales led Tranche III South West Cluster, 4 suppliers
Westminster Engineering, NFF Precision Ltd, J+S Ltd, AB Precision (Poole),
All companies working towards publishing CSIP
Thales led Tranche IV South East Cluster launched 4th October, 7
suppliers
Thales Optronics actively involved in Scottish SC21 programme
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This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
SC21 Activities
Six SC21 awareness seminars/workshops held throughout Thales UK
businesses
Workshop feedback used to help re-design Thales UK supplier
management/performance processes
These processes reflect SC21 principles, and contain all SC21 tools and
techniques
Redesigned processes being embedded throughout Thales UK
Whilst SC21 engagement will not be mandatory for our suppliers, it
will be seen as a ‘virtue’!
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This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
Purchasing Strategy – Supplier Base
1200
1000
M E u ro
800
95%
100%
989 M Eur o
1039 M Eur o
733 ( 20% ) Supplier s
3593 ( 100% ) Supplier s
80%
833 M Eur o
600
187 ( 5% ) Supplier s
400
Cumulativ e MEur o
200
0
0
500
1000
1500
2000
2500
N o o f S u p p lie rs
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This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
3000
3500
4000
Purchasing Strategy – Supplier Base
A - Class Suppliers (80%)
200
180
160
140
120
100
80
60
40
20
0
2009
8
2010
2011
2012
2013
This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
2014
Purchasing Strategy – Supplier Base
B - Class Suppliers (95%)
600
500
400
300
200
100
0
2009
9
2010
2011
2012
2013
This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
2014
Purchasing Strategy – Supplier Base
C - Class Suppliers (last 5%)
3500
3000
2500
2000
1500
1000
500
0
2009
10
2010
2011
2012
2013
This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
2014
Purchasing Strategy – Supplier Base
Total Suppliers
4000
3500
3000
2500
2000
1500
1000
500
0
2009
11
2010
2011
2012
2013
This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
2014
Purchasing Strategy – Supplier Performance
On Time In Full (OTIF)
100%
95%
90%
85%
80%
75%
70%
2009
12
2010
2011
2012
2013
This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
2014
Purchasing Strategy – Supplier Performance
Right First Time
100%
95%
90%
85%
80%
2009
13
2010
2011
2012
2013
This document is property of Thales Group and may not be copied or communicated without the written consent of Thales
2014
Purchasing Strategy and SC21
Strong need to rationalise and consolidate; Target – reduce by 60% by
2014
3,593 suppliers; ‘exaggerated’ Pareto, 5% of spend with 95% of supplier count
Only 11% of suppliers used by more than one business
Strategy is to outsource at a higher level
Sub-assembly/assembly level, to focus on core systems integrator capability
Tier/‘C’ Class service solutions
Performance improvement critical
UK average OTIF 82% - target >95%
UK average supplier quality 92% - target >99%
SC21 engagement will play a key role: selectable 40%
Competitive (typically lean, customer focused, adaptive)
Demonstrable, sustainable high performance
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This document is property of Thales Group and may not be copied or communicated without the written consent of Thales