What types of materials does Supply Dynamics aggregate?

Does Supply Dynamics work with OEM sites or the sub-tier suppliers?

Does Supply Dynamics work (exclusively) with any specific mills, manufacturers or distributors?

Can I buy my non-OEM end use materials through the program?

When will be able to begin purchasing materials through the program?

How does Material Demand Aggregation address unique specification, order form preferences, and service variables among vendors?

Why is Supply Dynamics essential to the Material Aggregation Process?

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?

What is OASIS and why is it an essential too for effectively aggregate materials?



Q:
What types of materials does Supply Dynamics aggregate?
A:
Materials such as:

Aggregated Materials
 
sheet metal*
fasteners
bar products*
plastics
 
 
bearings
bosses
braze products
electronic components
 
 
couplings
brackets
connectors
seals
 
 
forgings
pastes
thermal sprays
extrusions
 
 
weld wires
tubes
(all alloys)
small fabricated parts
powders
 
 

*nickel, cobalt, titanium, stainless, aluminum, carbon steels, etc.

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Q:
Does Supply Dynamics work with OEM sites or the sub-tier suppliers?
A:
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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Q:
Does Supply Dynamics work exclusively with specific mills, manufacturers or distributors?
A:
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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Q:
Can I buy my non-OEM end use materials through the program?
A:
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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Q:
When will I be able to begin purchasing materials through the program?
A:
Typically within 120 - 180 days of program initiation by a sponsoring OEM.

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Q:
How does Material Demand Aggregation address unique specification, order form preferences, and service variables among vendors?
A:
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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Q:
Why is Supply Dynamics essential to the Material Aggregation Process?
A:
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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Q:
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?
A:
Problem with traditional OEM material
consolidation programs (Right to Buy Contracts)
Material Demand Aggregation Solution

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.

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.

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.

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.

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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Q:
What is OASIS and why is it an essential tool for effectively aggregating materials?
A:
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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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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