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THE SUPPLIERS' VOICE: March 2006, Volume 6, No. 5
Associate Members Take Leadership Helm
By Bill Lewandowski, AIA Vice President of Supplier Management
Associate members are setting the 2006 agenda for the Supplier Management Council.
Their focus is to involve more associate members in the management and decisionmaking of the council.
The effort began last fall at the council meeting where the agenda included workshops on issues that associate members were experiencing with the government and with customers.
A summary report was produced by Joe Murphy, chairman of Ferco Tech, and Bob Morris, president of Renaissance Services. The report identified 24 issues in relationships, communications, competitiveness, and requirements application and interpretation. Sixteen of these were oriented to a solution that exclusively benefited associate members and eight were issues in which solutions solved industry problems for all industry suppliers.
At the council's Executive Committee meeting in January, work plans to address the issues were created for 2006 and beyond. First, issues were categorized as:
- Doable: can be accomplished with existing resources (8 issues).
- Difficult: hard to do and require additional resources (4 issues).
- Very difficult: require significant additional resources and collaboration among all members (10 issues).
- Extremely difficult: beyond the purview of the council, best handled between AIA and associate member on a one-on-one basis (2 issues).
Remediation actions were identified, issue managers were chosen, and completion dates specified. Results were recorded and are being reviewed by the council's Executive Committee.
Some work plans in the "doable" category are:
- Explain differences between strategic and preferred suppliers.
- Increase member company attendance at SMC meetings.
- Create a prominent, searchable database of associate member capabilities on AIA's Web site as a source for buyers.
- Refocus SMC's mission at all meetings.
Work plans in the "very difficult" category that require significant additional resources and collaboration among all members include:
- Improve requirements flow from customers to suppliers.
- Develop subcontract terms and conditions that address the risks and accuracy of supplier interface with customer material resource planning systems.
- Promote accurate supplier rating systems.
All "doable" issues are scheduled for completion by the next council meeting in April and major progress is expected on the others. A status report will be given at the April meeting.
The council will focus on its core principle of being a non-attribution forum in which suppliers present experiences in doing business with AIA member companies customers.
AIA's supplier council staff will request that associate member companies express their experiences with certain identified issues in an upcoming survey and recommend solutions that could be implemented by their customers. After discussion among member company representatives, the issues will be placed in one of the following categories:
- Can develop a solution.
- Can't be done with reasons given.
- Can be partially solved.
- Can't be done because the issue is not under the control of the SMC.
Further plans are in place for associate members to develop specific problem-solving agendas for future council meetings.
SMC 2006 Executive Committee in Place
AIA's Supplier Management Council has installed its Executive Committee for the year.
The panel provides leadership in developing workshops and master classes and recommending speakers and meeting sites. In addition, committee members provide studies and presentations and participate in industry panels and news media interviews.
Vince Hrenak, vice president of supply chain for Raytheon Company, is chairman, and Dennis Bent, vice president of operations and strategic sourcing for BAE Systems Inc. is vice chairman.
Bill Lewandowski, vice president of supplier management for AIA, is the association's representative to the Executive Committee.
Here is the full Executive Committee for 2006:
Derek Baggerly, President and Chief Executive Officer, ESIS, Inc.
Dennis Bent, Vice President of Operations and Strategic Sourcing, BAE Systems Inc.
William D. Brown, Vice President of Business Development, Kaman Aerospace Corporation
Michael Chanatry, General Manager of Global Sourcing, GE Aviation
Blair H. French, Director of Procurement, Integrated Defense Systems, The Boeing Company
Chuck Gray, Chief Operating Officer and Vice President, Frontier Electronics
Vincent J. Hrenak, Vice President of Supply Chain, Raytheon Company
William J. Lewandowski, AIA Vice President of Supplier Management
Bob Morris, President, Renaissance Services
Joseph Murphy, Chairman, The Ferco Group
Thomas A. Plungis, Corporate Director of Subcontracts and Supply Chain Management,
Lockheed Martin Corporation
Hugh J. Quigley, President, DynaBil Industries, Inc.
Peter D. Rettaliata, President, Air Industries Machining Corporation
Mary Simmerman, Vice President of Corporate Procurement, Northrop Grumman Corporation Integrated Systems
Robert R. Sprole, President, Therm, Inc.
Vickie L. Wessel, President, Spirit Electronics, Inc.
2006 Associate Member/SMC Events
- Spring 2006 SMC Meeting, April 24-26, Washington, D.C.
- Midwestern Regional Meeting, June 22-23, Burnsville, Minn. Host: Goodrich Corporation
- 45th Farnborough International Air Show, July 17-23, Farnborough, England
- Summer 2006 SMC Meeting, Aug. 15-17, Seattle, Wash.
- West Coast Regional Meeting, Sept. 27-28 Irvine, Calif. Host: Parker Aerospace
- Fall 2006 SMC Meeting, Oct. 24-26, Cocoa Beach, Fla.
For more information, contact Trish Ward at trish.ward@aia-aerospace.org or Peggy Boyd at peggy.boyd@aia-aerospace.org.
Exhibit with AIA at Farnborough (graphic)
As AIA gears up for the Farnborough International Airshow, the association is planning to provide
co-located exhibit space for associate and regular member companies.
AIA's booth will be located in Hall 3, a site with high traffic and exposure.
AIA members interested in exhibiting at Farnborough should contact Trish Ward at 703-358-1061 or trish.ward@aia-aerospace.org
Reaping Supplier Business by Key Numbers
AIA Supplier Management Council members have seven key opportunities each year to increase business by seeking broader insight into the industry and interfacing with customers, competitors, peers, and suppliers.
But there's only one way to receive the full benefits of these associate member opportunities — participation.
Council Meetings:+ Three of the seven chances occur at tri-annual Supplier Management Council meetings where networking opportunities with senior executives of primes and others in the supplier base abound.
The mission of council meetings is continuous improvement of the aerospace and defense industry and its supply base. Priorities include making suppliers a reckoned force with legislative and executive branches of government and providing non-attributable forums for supplier issues and solutions.
Regional Meetings: Three other opportunities take place at AIA regional meetings, hosted by AIA regular member companies at facilities around the United States. Regional companies are encouraged to attend, but the meetings are open to all member firms.
Each sponsoring company reviews its business activities and initiatives for educating and aligning customers and suppliers. Part of each meeting is a roundtable discussion on aerospace and defense business.
Air Shows: Finally, a major opportunity is exhibiting under the AIA banner at the alternating annual international air shows at Paris and Farnborough. Benefits include exhibit space, tickets to social events, help with hotel accommodations, introductions to potential customers, business lunches in AIA member chalets, and international "buyers" days.
Newest SMC Members
New on AIA's associate member roster are Ferguson Metals and TEK Precision Co., Ltd.
As of Feb. 16, 2006, AIA has 107 regular member and 167 associate member companies.
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