Electro-Motive Diesel Selects OASIS from Supply Dynamics to Help Manage Raw Materials Across Extended Enterprise

                                      

FOR IMMEDIATE RELEASE

12 July, 2010

CINCINNATI, OH, U.S.A.Supply Dynamics’ unique multi-enterprise solution (OASIS) for managing the timely purchase and supply of raw material has been licensed by Electro-Motive Diesel, one of the world’s leading providers of locomotive technology.  The main driver of the licensing agreement is Electro-Motive Diesel’s desire to improve its cost structure by reducing what it and its outside parts suppliers pay for the raw materials they buy to support Electro-Motive Diesel’s production requirements.

 

OASIS (See Figure 1) is a proprietary platform that allows multiple enterprises in an Original Equipment Manufacturer’s (OEM’s) supply chain to access appropriate reports and information related to the raw material requirements of the OEM and its outside parts suppliers.  OASIS is accessed securely over the internet and requires no costly integration effort with the OEM’s existing IT systems.  The managed information includes Bills of Material (BOMs) for the OEM’s parts and the Finished Parts Schedules that dictate when those parts must be delivered to the OEM.  Taken together, that information enables OASIS to produce a Material Demand Profile which allows the OEM to understand exactly what raw materials need to be bought, when and where they will be needed, and which production site or parts suppliers will be buying them.  This information, when shared by the OEM, is extremely valuable to producers and distributors of raw materials.  By eliminating speculation about demand, it helps them improve the efficiency of their operations.  The improved efficiency results in lower raw material costs for the OEM and its parts suppliers.

Figure 1 – Homepage of OASIS & Sample Material Demand Profile

 

A high-level overview of the Material Demand Aggregation that OASIS directly supports is found in an online video located at:

 

http://www.supplydynamics.com/material/presentation.asp

 

Christian Pentell, Manager of Global Strategic Sourcing at Electro-Motive Diesel said that, “Discovering OASIS, will provide my team with precision material requirements visibility throughout every stage of the entire supply chain and that’s huge. This program is truly leading edge strategy that most supply chain professionals have envisioned, but could never choreograph, much less formulate. It affords us a level of adaptive demand optimization with the kind of transparency we never had before.”  Trevor Stansbury, President of Supply Dynamics noted, “Adding Electro-Motive Diesel as a customer demonstrates how our aggregation process and on-demand solutions can be applied by companies in all sorts of different industries.  OASIS is being used to forecast the raw material requirements of airframe supply chains that use high performance alloys, power generation equipment supply chains that use a mix of carbon steel and high performance alloys, and now advanced transportation equipment supply chains that uses carbon steel almost exclusively.  We are pleased to be moving forward with Electro-Motive Diesel.”

 

About Supply Dynamics: Supply Dynamics is the leading provider of material consolidation solutions known as “Material Demand Aggregation.” Located in Cincinnati Ohio, Supply Dynamics utilizes proprietary processes and IT solutions to provide OEM customers with real-time visibility and control over the materials that go into their finished parts – especially the materials that go into the parts made by their Tier 1 and Tier 2 outside part suppliers. Provided in a hosted “software as a service” model, the Supply Dynamics multi-enterprise platform exchanges critical-to-quality data with virtually any number of legacy MRP/ERP systems, providing customers with a single, unified view of how finished part materials are impacting their business. Supply Dynamics’ suite of web-based tools and reports allow customers to instantly forecast and negotiate common materials and monitor the timely order and supply of materials across their extended supply chain. This enables an OEM and its supply partners to know that materials being produced, ordered and delivered are synchronized with actual finished part demand. It also allows the OEM to measure on-time delivery of raw materials to production sites and outside part manufacturers, to standardize materials and to identify users for surplus, excess and obsolete materials. Material Demand Aggregation is applicable to numerous industries providing a means for OEMs to coordinate the actions of each link in the supply chain to dramatically improve efficiency and predictability of supply. (www.supplydynamics.com)

 

 

About Electro-Motive Diesel:  Founded in 1922, Electro-Motive is one of two U.S. original equipment manufacturers of diesel-electric locomotives.  Headquartered in LaGrange, Illinois, with additional facilities in London, Ontario, EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and has sold its products in more than 70 countries worldwide.  The Company is the only diesel-electric locomotive manufacturer to have produced more than 70,000 engines and has the largest installed base in both North America and worldwide.  In addition to its manufacturing activities, EMD has an extensive aftermarket business offering customers replacement parts, maintenance solutions, and a range of value-added services.  The Company is also a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs, and stationary power generation.  Additional information may be found at www.EMDiesels.com.

 

For more information, please contact Mr. Bob Hales, Director of Market Development at (513) 965-2000.



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Testimonials

"During the past three years, Supply Dynamics has served as our "aggregation" service provider, overseeing programs for the consolidation of site and sub-tier supplier requirements for [three important programs]. All three programs were successful in achieving stated program objectives of (1) greater bill of material visibility; (2) reduced cost, and; (3) improved continuity of supply. Without reservation, I can vouch for the excellent performance and integrity of the Supply Dynamics organization. Their contribution has been invaluable."

Director Raw Material Sourcing, Smiths Mechanical Systems

"The team was able to comprehend the need and was willing to work to customize a solution that works well for both organizations. They have been responsive to our aggressive schedule and the time pressures of the project. They coded more than 8,000 part numbers in less than a month representing more than 900,000 lbs of material requirements across more than 30 suppliers. It has enabled GE Energy to obtain unified visibility into what was previously a fragmented bill of material spanning dozens of sub-tier suppliers. Ultimately, it allowed us to understand the raw material details of our parts that enable us to partner with the right suppliers to drive productivity and growth. Supply Dynamics is passionate about what they are doing and our association has helped us to realize some of the potential of the demand aggregation tool."

Senior Leader Sourcing, GE Energy

"The OASIS system employed by Supply Dynamics and provided to GE Aviation sub-tier suppliers, links Bill of Material Information from the sub-tier suppliers, fastener lead times, and the GE finished part schedule to create a fastener forecast that helps everyone anticipate fastener requirements and more efficiently source them. Over the last 3 years the program has provided a 15% average cost savings to our sub-tier suppliers on over 1.5 M individual fasteners purchased through the program. Better information has resulted in better performance across the board. Over the last 3 years, late fastener deliveries have been minimized and costs contained during one of the most escalatory periods in the last decade. This program has also given GE, and its sub-tier suppliers, the ability to plan their businesses and make smarter sourcing decisions."

Buyer, GE Aviation

"Hey – these guys are for real! We have utilized the services of Supply Dynamics for their part coding expertise and the results far outweighed our expectations. The coding was handled efficiently and professionally resulting in a data base of many thousands of part numbers of near pristine perfection – uncovering an absolute gold mine of heretofore hidden information. We were able to exploit the wide level of aggregation experience that the Supply Dynamics team offers and embark upon what we believe to be is a timely and much needed strategy for metallic raw material risk mitigation. Supply Dynamics became a true extension of our team, true partners in every step of the process. I recommend them highly to any organization that is serious about embarking upon an aggregation strategy. I can assure you, their commitment to your project, data handling expertise and overall aggregation experience will be the right fit for your aggregation project team."

Sourcing Program Manager, Honeywell

"Customer Service is great. I get instant responses on any changes or questions pertaining to my order."

Senior Buyer, Aerospace Industry sub-tier supplier

"Unbeatable prices with on-time delivery."

Buyer, Unison Engine Components

"[We] have participated in many initiatives that have been flowed down by the OEMs. In most cases, these programs are destined to fail because they offer no real solution to the problems we face and a reduction in our profit margin is not an option. I was very impressed with your presentation. It offers a real solution to reducing cost for the OEMs without affecting the profitability of the supply chain. A win, win situation is always good business. Kudos to the team at Supply Dynamics!"

Machined Parts Program Manager, Davis Tool

"We really like working with Supply Dynamics. They are kind of a 'one-stop-shop' for our fastener needs. They are my first, and usually last, call when I need fasteners because they are so good at finding what we need."

Buyer, Sun Country

"I really appreciate the way everything is working out between Barnes Aerospace Windsor Division and the Supply Dynamics organization and I wanted to take the time to write you to expound. We always get shipping notices, which helps cut down on timely questions / requests for information. When we have experienced problems [Supply Dynamics] have always gotten resolution in a timely manner, which helps us both immensely and goes a long way towards building a trusting relationship. When I saw that O’Neal bought into Supply Dynamics I was thoroughly excited, because we already deal with some of their companies and have a seamless existing relationship. It is very nice to come into work and know that there are people out there like yourselves that think and work so hard to service the supply chain."

Senior Buyer, Barnes Aerospace


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