Supply Dynamics Helps Original Equipment Manufacturers Get a Handle on Uncontrolled Raw Material Costs                                                 

FOR IMMEDIATE RELEASE
July 21, 2007


CINCINNATI, OH – Supply Dynamics recently captured raw material data on more than 20,000 detail parts in three months for Honeywell International, the world’s largest manufacturer of auxiliary power units and a major producer of turbine engines for the aviation industry. This was accomplished using the part coding resources of Supply Dynamics and OASIS, it’s proprietary multi-enterprise platform provided in a SaaS model.


As the aerospace industry’s leading provider of material consolidation solutions, Supply Dynamics utilizes it deep and broad raw material expertise and 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 materials that go into parts made by their Tier 1 and Tier 2 suppliers.


For Honeywell, Supply Dynamics electronic dashboards and utilities provide a clear picture of the company’s exposure to metals market fluctuations, allowing it to see and understand the impact of finished part schedule pushes and pulls on aggregate material requirements. Armed with this information, Honeywell has taken the next step to provide a secure source of supply for its sub-tiers. Daniel Prophater who has overseen the Honeywell implementation of OASIS for Supply Dynamics says that, “Due to the increased exposure raw materials have been getting, the customer is using direct outputs from OASIS to support executive-level decision making and strategy development. That includes hedging strategies, an OEM directed Aggregation Program, and efforts to standardize raw material.”


Honeywell is not alone. In the market today, raw material lead times, capacity, and pricing continue to fluctuate. Companies that lack visibility into the raw materials that go into their parts (because they are purchased by outside manufacturers) are not able to manage them or understand the degree to which they impact the bottom line. Prophater characterized the issue by saying, “When the assembly comes into your facility, you see the assembly; you don’t realize there are two castings, two shafts made out of nickel bar stock, and a sheet metal housing all held together by 12 fasteners.”


Supply Dynamics has restored visibility for several of the worlds largest aviation OEMs – providing raw material forecasts, multi-level access to bills of material, and aggregation program administration services.


Supply Dynamics is the leading provider of material consolidation solutions know 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 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. Our 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 sub-tier suppliers, 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 and dramatically improving efficiency and predictability of supply. (www.supplydynamics.com)

For more information, please contact Trevor Stansbury 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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