Rockwell Collins looks to suppliers for help meeting MRO objectives
Purchasing details MRO buying strategies
By Staff -- Purchasing, 9/13/2007 2:00:00 AM
"Ultimately, our success is a reflection of our suppliers," says Steve DeFord, commodity manager, enterprise sourcing—indirect operations, at Rockwell Collins in Cedar Rapids, Iowa. DeFord is a member of Purchasing's All Star MRO Buy team for 2007.
DeFord and his team recently completed seven sourcing projects, helping to reduce costs by $2.9 million and consolidate the supplier base from 85 to 10. Other benefits include: shorter leadtimes, improved product availability, streamlined processes and higher service levels.
In one spend category—janitorial supplies and services—the team implemented a standard facilities services model, in effect, outsourcing the buy, across U.S. locations that reduced costs 19%.
Rockwell Collins develops and deploys communication and aviation electronics for commercial and government applications. The material and supply operation received Purchasing's Medal of Excellence in 2005.
 DeFord: “Success of the MRO buy strategy for Rockwell Collins is a reflection of our suppliers.” |
DeFord is responsible for developing and executing a sourcing and procurement strategy for products and services that support the company's operations, including MRO, facilities services, chemicals, real estate, manufacturing supplies, logistics/freight, security and environmental services. The annual spend for these categories across 20 of the company's locations is $180 million. DeFord manages a team of seven individuals, and reports to Brian Ross, director of enterprise sourcing.
Specific goals of his team include:
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Increase use of e-tools to minimize transaction time and reduce purchase requisitions. In other words, the team is working to put more than 50% of the company's MRO spend on e-catalogs, and reduce requisitions 30% year over year. To date, they've increased the e-catalog spend each month from almost zero in 2005 to nearly 30% in 2007, a 33% reduction in requisitions in 2006.
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Use strategic sourcing reviews to streamline the supply base and minimize TCO for MRO. The team is working to reduce the supply base by 20% and cost more than $2 million each year. In 2006, they reduced the supply base by more than 30% in the areas in which a strategic sourcing review was performed, saving more than $2 million.
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Allow everyone to share the benefits by ensuring a high level of compliance. Specifically, that means greater than 80% compliance to implemented solutions. The team's ability to track the metric is improving, but is still being developed. Estimated compliance is more than 60%.
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