Aerospace & Defense
INDUSTRY CHALLENGES
The Aerospace & Defense verticals are dominated by a handful of extremely large manufacturers, supported by a global, multi-tiered supply chain. The products in these markets are extremely complex and diverse ranging from a gigantic Boeing 777 airplane to a mobile guided missile system. However, there are some common challenges faced by all companies that are part of these markets, including:
New Technology
Continuous advancements in materials and manufacturing methodologies are creating time-to-market and cost overrun challenges for aerospace companies.
New Partnership Models
Partnership success and other similar risk sharing models have created significant financial strain on suppliers who are typically not paid until a new product is certified. Suppliers may face severe cash flow shortages and, in some cases, possible bankruptcy.
Managing COGS
Cost of goods sold made up more than 80% of Boeing and Airbus revenues for fiscal year 2017. With cost escalating across a number of different dimensions, there is an industry-wide focus on new strategies and technologies that help improve product profitability.
How Apriori Can Help
Product Cost Management (PCM) provides a common technology platform to help you quickly understand the cost consequences of each and every tradeoff decision you make. For aPriori customers like Honeywell Aerospace, Boeing Commercial Airplane Group and Spirit Aerosystems, this provides a significant competitive advantage. Shown below are some of the key benefits aPriori PCM can provide for your company.
Design for Manufacturability
Quickly identify potential manufacturing issues during early design and leverage simple practical guidance on how to eliminate the problem and reduce product cost.
Maximize Product Profitability
Automated and bulk costing capabilities enable companies to increase the % of cost-optimized parts in new product designs and significantly improve profit margins.
Improve Supply Chain Collaboration
Quickly and easily generate detailed should cost estimates that empower buyers to negotiate with more detailed manufacturing data than ever before.
aPriori Customers
PCM Value Proposition
Supply Base Benchmarking
Enables commodity manager/transition manager to analyze and facilitate potential supplier changes. Helps to build business cases for changing to a new manufacturing technology.
Spend Analysis
Allows sourcing professionals to identify design outliers, price outliers, manufacturing inefficiencies, etc., using batch costing capabilities and business intelligence tool.
Supplier Negotiations
Helps sourcing managers to negotiate more effectively with suppliers using detailed manufacturing data generated from should cost estimates.