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What types of materials does Supply Dynamics aggregate? |
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Materials such as:
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Aggregated Materials |
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sheet metal* |
fasteners |
bar products* |
plastics |
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bearings |
bosses |
braze products |
electronic components |
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couplings |
brackets |
connectors |
seals |
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forgings |
pastes |
thermal sprays |
extrusions |
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weld wires |
tubes
(all alloys) |
small fabricated parts |
powders |
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*nickel, cobalt, titanium, stainless, aluminum, carbon steels, etc. |
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Does Supply Dynamics work with OEM sites or the sub-tier suppliers? |
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Both. The focus of our Material Demand Aggregation Solution is to reduce costs and improve service levels for virtually any material that goes into OEM and the sub-tier supplier manufactured parts. |
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Does Supply Dynamics work exclusively with specific mills, manufacturers or distributors? |
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No. Ultimately the decision regarding where to source materials rests exclusively with the OEM and its sub-tier suppliers. Supply Dynamics simply provides the process and the multi-enterprise platform to enable Material Demand Aggregation involving any number of mills and/or distribution sources. However, as a wholly-owned subsidiary of O'Neal Steel, the world's largest family-owned metals service center, Supply Dynamics is uniquely equipped to advise you on a variety of leading domestic and international sources. These include the sourcing of materials from qualified, non-traditional, low-cost sources. |
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Can I buy my non-OEM end use materials through the program? |
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Yes, all materials, irrespective of the end-use customer, can typically be procured through a material Demand Aggregation Program. Ultimately, however, this decision rests with the OEM. |
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When will I be able to begin purchasing materials through the program? |
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Typically within 120 - 180 days of program initiation by a sponsoring OEM. |
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How does Material Demand Aggregation address unique specification, order form preferences, and service variables among vendors? |
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Material Demand Aggregation offers JIT delivery for stocked items and a sophisticated “early warning” system for managing non-stocked items with greater accuracy than ever before possible. Individual service level customization is easily accommodated.
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Why is Supply Dynamics essential to the Material Aggregation Process? |
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Traditional OEM material consolidation programs, often referred to as “Right to Buy Contracts,” invariably lack the robust program controls and enterprise-wide visibility necessary for sustained success. Complications such as sub-tier defections and the absence of an effective monitoring and enforcement mechanism are common to such programs. These and other common failure modes are eliminated under a Material Demand Aggregation program. Moreover, unlike “Right to Buy Contracts,” Material Demand Aggregation delivers on the promise to make the material source more efficient rather than relying on leveraged demand alone to secure the best price and service levels.
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Why do OEM sponsored material consolidation programs or “Right to Buy” contracts invariably fail to deliver the desired results and how does Material Demand Aggregation address those failure modes? |
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Problem with traditional OEM material
consolidation programs (Right to Buy Contracts) |
Material Demand Aggregation Solution |
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| Consolidated material volumes that prices were predicated upon never materialize. |
Utilizing OASIS a robust, sophisticated, hosted IT application; Supply Dynamics monitors and enforces program compliance over time to eliminate program leakage. |
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| A big driver of cost and inefficiency in the material supply chain is the high degree of demand speculation at the material source. This impacts material lead-time and often results in material shortages or surplus, excess or obsolete inventory. |
The Leading Indicator Report© generated by OASIS provides the materials source real-time information about aggregate material demand by specification and size over time, yielding dramatic improvements in material source performance. |
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| Sub-tier suppliers are often reluctant to supply an OEM with highly sensitive Bill of Material data. |
Supply Dynamics is an objective, impartial third-party which allows sub-tier suppliers and OEMs to share certain information while protecting information that either party deems proprietary, including granular Bill of Material information. |
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| OEM’s often lack the personnel or “bandwidth” to effectively administer a complex cross-enterprise materials aggregation program where deep and broad material expertise is essential. |
Supply Dynamics is comprised of materials and sourcing methodology experts, covering the full range of materials from metallics to fastening systems and electronic components. With Material Demand Aggregation, you are not just investing in a proven methodology, or even a sophisticated software system; you are contracting with full Bill of Material and process experts—problem solvers that are committed to your success. |
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| Bills of Material manually collected are almost instantly obsolete due to finished part configuration changes and Bill of Material changes at OEM sites and sub-tier suppliers. |
The Supply Dynamics Material Demand Aggregation methodology and OASIS application ensure that Bills of Material are always up-to-date and accurate. |
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What is OASIS and why is it an essential tool for effectively aggregating materials? |
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When it comes to restoring granular Bill of Material visibility and establishing control over material input costs across a supply chain, even the most advanced MRP or ERP system won’t suffice. OASIS (the Online Aggregation Strategic Information System) is a sophisticated, web-enabled, hosted IT application developed by Supply Dynamics. Unlike so many off-the-shelf MRP systems that are engineered to manage finished parts, OASIS was specifically engineered to manage the material-inputs that go into finished parts. Fully accessible by OEM’s, OEM sub-tier suppliers and material sources, OASIS forecasts aggregate material requirements based on OEM finished part demand. It also allows users to track and monitor the timely purchase and supply of materials ensuring that material is never the reason why a finished part is late. There is no other IT solution like it.
OASIS combines sophistication, simplicity and ease of use in an application that can accommodate a variety of unique material input items and completely integrates with disparate (legacy) MRP/ERP feeds from virtually any source (Oracle, SAP, WebPlan, EDI, CSV formats, etc). |
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Material Demand Aggregation |
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Customer Profile |
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Case Studies |
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Frequently Asked Questions |
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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