Connecticut. How to Do Business with Airbus? International Aerospace & Defense Trade Summit. Groton, CT
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1 Connecticut Marc Vibes Director Joe Marcheschi Director International Aerospace & Defense Trade Summit How to Do Business with Airbus? Groton, CT
2 Airbus Group at a glance - Airbus Commercial - Airbus Military - Cassidian - Astrium - Eurocopter
3 Airbus Group North America ~50 Locations ~5100 Employees / Contractors ~3500 USA ~1600 Canada Airbus Group ~ 50 Airbus Americas ~ 1300 Airbus Defense & Space ~ 1200 (Divestments in progress) ~ -750 Airbus Helicopters ~ 1000 Vector Aerospace ~ 1100 STELIA Aerospace ~ 450
4 Airbus in the US Catalyst for $15.8 billion in annual aircraft related expenditure in the USA Supporting over 262,000 jobs Suppliers in over 38 states Five primary Airbus sites, employing over 2,000 employees Airbus Engineering Center Mobile, Alabama Airbus Training Center Miami, Florida Headquarters Herndon, Virginia Airbus Engineering Center Wichita, Kansas A strong and growing physical and economic presence in the USA 2016 Mobile FAL to deliver first American assembled A320 Airbus Spares Center Ashburn, Virginia
5 Airbus expands in the US with an A320 family Final Assembly Line 2013 Start of construction 2015 Start of aircraft assembly 2016 First delivery to 50 deliveries
6 Organisation - worldwide coverage Sourcing Office Sourcing Office North America Central & Operational Teams Sourcing Office China and East Asia India and Middle East More than 2,700 employees representing 37 nationalities located worldwide, looking after more than 8,500 Suppliers (excluding Airbus Military).
7 organisation: specialised and performance-oriented Airbus & Airbus Group Strategy & Services Compliance Management A350 XWB Series Programmes Commodities Aerostructure Material and Parts Equipment/Systems & Support Cabin Propulsion Systems Operations Airbus Group General * Airbus Military Quality Finance Governance and support units Contracting domain Operational domain HR Dedicated governance and support functions Overall responsibility for business with suppliers (TCO) End-to-end supply chain operations management Specific & Crossfunctional/divisional activities & links * Shared service for the whole Airbus Group
8 Multi-Functional Teams (MFT s) leading sourcing & contracting activities Each Commodity is composed of sub-commodities leading Multi Functional Teams (MFT s) in charge of managing the process for dedicated products/services (for example hydraulics, wings ) Sub-Commodity (Lead) 52 MFT s within Engineering Finance / Costing Manage process for a dedicated portfolio Programs Supply Chain Management Manufacturing Customer Services
9 Contracting domain - Marketing From strategy definition... Define procurement & sub-commodity strategy Supplier selection & contracting Supplier monitoring & contract management Control suppliers...to product support Order and receive products Through Marketing activities, we support the procurement process end to end for USA, Canada and Mexico for Airbus Group
10 N.A. - Process Events/ Networking BU request reception from GSN Request for an RFI* Research for potential suppliers RFI sending* RFI sending* RFI completion and sending RFI completion and sending Supplier graded and database update Reception confirmation BU request answer RFI assessment and database update Interesting supplier preselection Supplier approved for further investigation Supplier phone call Supplier Herndon Supplier Visit/ SCORE assessment Supplier evaluation form completed Supplier database and supplier profile update Call for Tender US CSO Supplier Additional step if RFQ is launched Systematic step Need for additional information Step created in August 2011
11 quality and supplier development domain PRE-ASSESSMENT of potential new suppliers QUALIFICATION and re-qualification of suppliers Product and Quality AUDITS Industrial PROCESS CONTROL ASSESSMENT (combination of quality and supply chain) CAPACITY contingency assessment Supplier QUALITY continuous Improvement (SQIP Programmes) Airbus supports its new and existing suppliers by providing field engineers on site to help them achieve qualification, delivery performance improvement, industrial optimisation and compliance with Airbus and external regulations. AIRBUS Aerospace Americas. & All Defense rights reserved. Connecticut Confidential and proprietary document.
12 Operational domain Supplier Development From strategy definition... Define procurement & sub-commodity strategy Supplier selection & contracting Supplier monitoring & contract management Control suppliers...to product support Order and receive products
13 General Domain (AGGP) AGGP is one of the Airbus Group shared services which mission is to provide to all Airbus Group divisions the goods and services of the general procurement scope The objective is to satisfy the needs of the divisions in terms of delivering on time, on quality and at the best price, while adding value to the business through the commodity expertise and know how.
14 Contracting domain General From strategy definition... Define procurement & sub-commodity strategy Supplier selection & contracting Supplier monitoring & contract management Control suppliers...to product support Order and receive products
15 Airbus Drivers Globalize & consolidate the supply chain STIMULATE the competition within the supply base FEWER and BIGGER suppliers with ENHANCED responsibility L4L (Local for Local) will remain, key support for a Final Assembly Line EARLY INVOLVEMENT of major suppliers in joint development teams including R&T GLOBAL SOURCING* challenges for both Airbus and its suppliers Develop Suppliers to world class status PRE-ASSESSMENT of potential new suppliers; sustainable QUALIFICATION of suppliers Product and process quality AUDITS INDUSTRIAL PROCESS CONTROL ASSESSMENT (quality and supply chain) RISK MANAGEMENT culture *Global sourcing: international sourcing = Non-European countries
16 What are we looking for in potential suppliers Quality accreditations, AS9100, NADCAP, etc. Already working for an Airbus Group Business Unit or other aerospace OEM s Customer recognition, GOLD, 5 STAR, supplier of the year, etc. Strong in commercial work Financially stable and ability to invest, management and functional structure (GRESS- GRAMS) Strong manufacturing engineering capabilities Innovative products and companies Vertical integration Global presence and core capabilities aligned with current needs (dynamic process in nature)
17 Common ways to enter our supply chain - flying parts Direct with Airbus as T1 (GRESS-GRAMS) As a T2 to a T1 (two main paths) New programs Approval cycle 6+ months Tow Approval cycle approximately 1 year It is extremely important to understand your Tier and Not everyone has to be a T1! GRESS-General Requirements for Equipment and System Suppliers GRAMS-General Requirements for Aerostructures and Material Suppliers
18 Airbus/Supplier joint efforts to meet customer demand RAMP-UP Ensure sufficient capacity ON-TIME DELIVERY Reach and sustain excellent performance QUALITY Make it right the first time COST Be creative and propose solutions for cost optimisation
19 Airbus Group North America Contact Information Process to follow: You must obtain a Request For Information (RFI) document by sending an to: NAsupplier@airbus.com Answer all the questions on the RFI document. Prepare your company presentation Title your response: Airbus North Americas Headquarter: 2550 Wasser Terrace, Suite 9100,Herndon, VA USA Goods & Services RFI response for all nonflying goods and services. Flying Parts RFI response for all products that will actually be installed or used on an aircraft. Return the RFI document and company presentation via to: NAsupplier@airbus.com Airbus will review your company s submittal and will record it in the North America Database. Note: Submitting an RFI does not guarantee inclusion into any future Request for Quotes.
20 Useful sources of information
21 Click here to learn more about the Airbus organization and major suppliers. All sub-commodities for Airbus Commercial are shown
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24 This document and all information contained herein is the sole property of AIRBUS Americas. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of AIRBUS Americas. This document and its content shall not be used for any purpose other than that for which it is supplied. The statements made herein do not constitute an offer. They are based on the mentioned assumptions and are expressed in good faith. Where the supporting grounds for these statements are not shown, AIRBUS Americas will be pleased to explain the basis thereof. AIRBUS, its logo, A300, A310, A318, A319, A320, A321, A330, A340, A350, A380, A400M are registered trademarks.
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