Subcontract management

Where customers’ supply chain policy requires the selection of subcontractors and the management of the subcontractor performance they can conclude that managing this activity is not their core competence and wish to outsource these activities to a 3rd party.

thyssenkrupp Aerospace has several years’ experience in delivering such a service which has the following key characteristics:

  • Selection of  sub-contractor sources (with or without customer involvement)
  • Management of raw material flow to sub-contractors
  • Control the flow of engineering information to sub-contractors
  • Management of First Article Inspection
  • Management of production manufacturing including special processes
  • Coordination of parts manufacturer deliveries 
  • Perform receiving inspection as agreed with customer
  • Storage of inventory.
  • Kitting of parts.
  • Delivery of kits to point of use.

The benefits of this approach include:

  • Demand for raw material is calculated using customer demand for finished parts
  • Raw material supply to all users at the same base price
  • Special processes contracted at the same base price for all users
  • The management of supply of a wide range of dissimilar products through a common process.
  • The development of kits to meet the customer’s needs.
  • Just-in-time delivery of kits to the point of use on a consistent basis.
  • The management of a large number of transactions which frees the customer to focus on his core business.
  • Reduced costs.