European aircraft company Airbus is to streamline its €16m supply chain using software from i2.
Airbus looked at its procurement process 18 months ago with a view to reducing costs and delivering an integrated system across its European sites, according to Jeff Poole, the company's senior vice president of procurement.
"It was important to us to have a system that required very little customisation. i2 supplied us with the most appropriate offer," he said.
The project, called [email protected], breaks down all of Airbus' supply chain needs into four components: a sourcing element governing contract awards; general procurement where employees are able to make purchases from a catalogue; supply chain tracking of order fulfilment; and the ability to record and monitor supplier performance.
Airbus currently has around 500 suppliers that are "vital" to the aircraft construction part of the business. "Getting a handle on the volume and value of these transactions will be a real benefit to our business," said Poole.
When adding in the number of suppliers for more general items such as stationary, the number increases to thousands. "We would be looking for [email protected] to allow us to reduce the number of suppliers," he explained.
Airbus currently spends €16m a year on corporate procurement. The supply chain system is due to be completed by the end of 2003, and will use i2's supplier relationship management and supply chain management software.
Airbus has already been working out how the system will operate, gathering opinions from interest groups across the UK, France, Spain and Germany.
The systems have been prototyped and tested and will be rolled out over the next 18 months.
The contract win will prove a fillip for i2, which has seen sales halve over the past year.
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