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THE SUPPLIERS' VOICE: November/December 2006, Volume 7, No. 2 Chairs Define Leadership In SMC's First 10 Years
By Bill Lewandowski, AIA Vice President, Supplier Management

The Supplier Management Council will celebrate its 10th anniversary next year — a remarkable milestone for an organization that began in January 1997 as a small cadre of 20 supplier companies.

A decade later, the council is a mature body of strength and influence in the aerospace and defense industry, bolstered by a dynamic roster of 179 associate AIA members.

In its brief life the SMC can credit the four industry chairpersons who've shepherded the organization through its formative years.

Fred Finley from Raytheon Company, the first chairman, was an old fighter pilot who bravely got the new organization launched and kept it flying as the SMC searched for its niche.

Blair French from The Boeing Company, the second chairman, managed the SMC with diplomacy and a calming, thoughtful manner that began an important maturing process.

Judy Northup from Vought Aircraft Industries took office right after 9-11. She focused on innovative cooperation and coordination between suppliers and customers — a perfect strategy to help pull the SMC through one of the most difficult cycles ever suffered by the aerospace industry.

The most recent chairman, Vince Hrenak of Raytheon Company, focused on developing an environment for supply chain integration. For example, associate members other than manufacturers were recruited — hi-tech and software companies, distributors, and material managers who add value to the aerospace industry and competency for an integrated supply chain.

These companies now make up the SMC Services Working Group, which has made great strides in acquainting the other members on what services can do. Overall, the SMC has grown by more than 40 companies under Hrenak and retention has been high.

Last year, he was asked to serve a third consecutive term during a period of reorganization in which the SMC became established as an integral part of AIA.

Hrenak has been tireless. He chaired 21 SMC meetings, briefed at Board of Governors meetings, chaired numerous working groups, and attended every Paris and Farnborough air show for the SMC.

Approved as chairman emeritus of the SMC, Hrenak will remain on hand to help guide the organization into its second decade of service to suppliers.



Aerospace Suppliers Storm Florida to Chart SMC Issues
Photo: Members of AIA's Supplier Management and Space councils are dwarfed by a Delta IV rocket at Boeing's Integrated Defense Systems division at Cape Canaveral, Fla. The tour was part of the Fall SMC meeting, which focused on space business opportunities for suppliers.
Members of AIA's Supplier Management and Space councils are dwarfed by a Delta IV rocket at Boeing's Integrated Defense Systems division at Cape Canaveral, Fla. The tour was part of the Fall SMC meeting, which focused on space business opportunities for suppliers.

The Fall Supplier Management Council (SMC) Meeting in Cocoa Beach, Florida, carried on with its biggest threat to success eliminated — no hurricanes.

The agenda of the October meeting focused on three main areas — supplier issues, space business, and industry initiatives.

Supplier Issues
This was the second year of workshops on issues suppliers are having with the government, AIA member company customers, and processes within their own companies.

The issues were met with an overriding pledge of support: "What can AIA and the SMC do to help?"

Moderators of the supplier issues discussions were Joe Murphy of The Ferco Group, Vickie Wessel of Spirit Electronics, and Bob Morris of Renaissance Services.

They will produce a report from which the SMC Executive Committee will develop action plans to address the issues in 2007 meetings and through joint AIA and SMC initiatives.

Many of the issues center on associate member access to information and guidance in such areas as export control, the Small Business Innovation Research Program, the Manufacturing Extension Partnership, and the domestic non-availability determination process for specialty metals.

Space Business
A look at U.S. endeavors in space generated interest for suppliers to consider space as a business opportunity.

New AIA initiatives in support of space and an overview of the nation's long-range space vision known as the Moon, Mars, and Beyond exploration program were discussed in a joint session with the association's Space Council.

The National Security Space Organization expressed a need for increased supplier participation in U.S. space programs.

Former astronaut Rich Clifford shared insights on the past, present, and future of space travel, leading into a spectacular Delta II rocket launch from the nearby Kennedy Space Center. It was the start of a sun measurement mission and the launch could be seen clearly from the meeting site.

The meeting finale was a tour of the Kennedy Space Center, including International Space Station facilities, the space shuttle launch pad, and the Lockheed Martin and Boeing assembly facilities and launch pads.

Industry Initiatives
One of the most important issues for suppliers entering the global marketplace is the troublesome export control licensing process, a high priority association target for reform.

Mark Esper, AIA executive vice president, discussed the International Affairs Council's two-phased approach to remedy export licensing problems for the aerospace and defense industry, including suppliers.

A second industry-wide issue discussed was failure of customers to adequately flow down technical requirements to suppliers and difficulties suppliers face in interpreting them. Results are often program delays, higher costs, and quality issues.

A panel of customers and suppliers discussed "best practices" that have been developed to help alleviate communication problems.

A comprehensive meeting of customers, suppliers, and government representatives is scheduled for January 2007 to further discuss the problem.



2007 Associate Member/SMC Events
  • Southwest Regional Meeting, Feb. 22-23, Dallas, Texas. Host: Raytheon Company

  • Spring 2007 SMC Meeting, March 19-21, San Antonio, Texas

  • 47th Paris Air Show, June 18-26, Le Bourget Airport

  • Summer 2007 SMC Meeting, July 24-27, Colorado Springs, Colo.

  • Fall 2007 SMC Meeting, Sept. 16-18, Atlanta

  • Northeast Regional Meeting, Sept. 20-21, East Hartford, Conn. Host: Pratt & Whitney

    For more information, contact Trish Ward at trish.ward@aia-aerospace.org or Peggy Boyd at peggy.boyd@aia-aerospace.org.



    Gower Leads SMC in 2007
    Bob Gower, vice president of supplier operations for The Boeing Company, is the new chairman of AIA's Supplier Management Council for 2007. Gower and other officers were elected at the SMC's Fall Meeting in October.

    Dennis Bent, vice president of operations and strategic sourcing for BAE SYSTEMS, will continue as vice chairman.

    Joe Murphy, chairman of The Ferco Group, will be the associate member representative to the AIA Board of Governors and its Executive Committee.

    Vince Hrenak, supply chain vice president for Raytheon Company and president of the SMC for the past three years, was approved as chairman emeritus of the council.



    Newest SMC Members
    New on AIA's associate member roster are Blenheim Capital Services, Blue Gill Consulting Group, LLC, Saalex Solutions, Inc., Software Professionals, Inc., and Southco, Inc.

    As of December 5, 2006, AIA has 182 associate members and 108 regular members.


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