120.003.1 149.2001 purchasing group synergies

Jun 7, 2001 - ECESA. S. Domingo. ECESA. D. Richardson. McAlpine. P. Dixon. McAlpine ... +1.905.871.33.20. ESEA. M. KOH. +65.54.34.177. +65.54.28 797.
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SUBSIDIARIES & PARTICIPATIONS DIRECTORATE

EXPEDITEUR / FROM NOM / NAME: Markus Steinke SERVICE / DEPARTMENT: PJ TEL N°: +33/4.42.85.61.76 FAX°: +33/4.42.85.89.28 E-Mail: [email protected] INTERNAL COPIES: SenVP- Dr. Sobotta,

A - G. Bucksch, Ch. Allard D – L. Teisseire, all in P Ref. : P-N°149/2001

Subject :

DESTINATAIRE / TO AEC - R. Palladina ECL - E. Gaillat ESEA - H. Stell Helibras - J. Raquin EMSA - J.E. Drouault ECESA - E. Consejo ESAL - G. Wissmann EIP - G. Joannes McAlpine - M. Dubarry Date: 7th June 2001

PURCHASING - GROUP SYNERGIES

In order to better explore purchasing synergies for all participants of the group and to align the activities launched at the beginning of the year (ref. letter P. Barraquand/F. Guisolphe 29.1.01) it is planned to 1. build-up a Purchasing Network within ECG 2. attack purchasing cost reduction at subsidiaries, starting with 2 precise issues: -

“Logistics Costs”, as identified by you - the subsidiaries - during the Logistic Seminaire “Cost on Information Technology” (Licencies, Hardware …)

3. do worldwide benchmarking; starting out with “Aircraft painting (costs, finishing quality)”

Thus a dedicated Purchasing Seminar is planned for the second week of July in Marignane. A separate invitation by the EC Puchasing Directorate will send out shortly.

Please nominate your purchasing/procurement expert(s) to participate and the focal point at your subsidiary - if not already done before (see attached attached table).

Best Regards

M. Steinke

SUBSIDIARIES & PARTICIPATIONS DIRECTORATE

EXPEDITEUR / FROM NOM / NAME: Markus Steinke SERVICE / DEPARTMENT: PJ TEL N°: +33/4.42.85.61.76 FAX°: +33/4.42.85.89.28 E-Mail: [email protected]

DESTINATAIRE / TO - All Participants (see below) - ECG Purchasing Group Copy: SenVP, S, D, K

COPIES: all in P Ref. : P-N°186/2001

Date: 12th July 2001

Subject : PURCHASING SEMINAR 11/12 th July 2001 Marignane – Minutes of Meeting

1. Participants N. Fraiser L. Sarlas M. Koh A. Garcia S. Domingo D. Richardson P. Dixon G. Bucksch (partly) Ch. Allard F. Guisolphe (partly) M. Steinke

representing ENAC (ECL, AEC, EMSA) Helibras ESEA ECESA ECESA McAlpine McAlpine A AF P PJ

2. Objectives of the Meeting 1. Build-up a Purchasing Network within ECG 2. Attack purchasing cost reduction at subsidiaries / contribute to group targets 3. Start-up worldwide benchmarking 3. Key Messages and Actions 1. CONVENTION: Subsidiaries will pass through EC/ECD to obtain EADS-contract conditions! ECG bundling of demands first! 2. “GROUP CONTRACTS”: 15 group contracts existing or in negotiation: HONEYWELL, SEXTANT, LIEBHERR, HEXCEL, SULLY, SAP, SIEBEL, MICROSOFT, UNIX, DELL, LEXMARK, ORACLE, CATIA, ADOBE, WAN. Action: Identify 2002 purchase demand on IT-equipment Template will be sent out separately Action: Systematically develop “group contracts”

all subs A

3. SHIPPING COSTS REDUCTION Subsidiaries pay a significant part of the groups shipping costs for Airframes ad Spares (“exworks condition”, more than half of all HC are delivered by subs). Subsidiaries shipping cost volume was estimated at more than 7M€ ! Objective: Combine purchasing power of subs and pool with EC/ECD. Avoid double paying of forwarder services (e.g. SCAC) by EC/ECD and subs Action: Mapping of shipping costs and forwarder services Template (see annex) to be returned to P and A before 17th August. Action: Analysis of related EC/ECD contracts on services and volumes

all subs

A

4. COMMON SUPPLIER Agreement on deeper study on supplier performance, contract conditions and pooling interest for: HONEY WELL, SPECTROLAB, FLIR, ZF, BFGOODRICH,TECHTOOL, AEROAIRE, NAT, GARMIN Action: Systematic info gathering and exchange

A

5. VENDOR PARTS BOUGHT FROM EC/ECD Increasing cases of EC/ECD selling vendor parts to subs with higher prices as subs could get from vendor directly. Action: Clear identification of those parts and the price differences Please answer without template before the 17th of August

all subs

6. E-BUSINES Subs show considerable interest in E-Sourcing. Action: Include subs in E-business appoach

D

7. GLOBAL BENCHMARKING Action: Initiate info gathering on leadtimes & manhours of “HC Painting”

Detailed documentation of the Seminar will be send out by e-mail! A follow-up Meeting will be schedule according to actions’ progress.

Markus M. Steinke / PJ

Christine Allard / AF

A

ECG PURCHASING GROUP FOCAL POINTS - SUBSIDIARIES

SUBSIDIARY

NAME

TEL

FAX

AEC

O. FRANCOU

+1.972.641.37.02

+1.972.641.37.79

ECL

N. FRAISER

+1.905.871.77.72

+1.905.871.33.20

ESEA

M. KOH

+65.54.34.177

+65.54.28 797

HELIBRAS

LAWRENCE SARLAS +55.35.36.29.33.35

+55.35.36.29.30.04

EMSA

V. FOURNOT

+525.756.1022 ext 113

+525.763.11.41

ECESA

A. GARCIA

+34.91.379.72.00

+34.91.508.39.58

ESAL

L. VAN HEERDEN

+27.11.799.83.09

+27.11.701.36.36

EIP

G. JOANNES

+612.9794.99.00

+612.9794.99.55

McAlpine

P. DIXON

+441.865.841.188

+441.865.842.827

ECROM

JL. MASCLE

59610

58928

ESJ

S. GINOUX

+813.3560.5860

+813.3560.5865

EPI

G. SALES

+632.853.8855

+632.853.8857