Building upon the successes of phase one, the team delved into addressing their embedded raw material spend. They gathered teams from across the organization to map the supply base, working closely with machine shops and forgers to understand where they sourced materials, how they procured them, their yields and expectations of service from distribution and mill partners. This data formed the foundation for this most strategic endeavor: the consolidation and global leverage of their raw material volume.

Their efforts identified more than 700 unique materials grades produced to conform to more than 1,000 specifications, encompassing a diverse range of materials, such as aluminum, stainless steel, nickel, cobalt and titanium. They established raw material supply ecosystems to support their Tier 1 suppliers and direct factories, beginning at the distribution level. For example, in India, they successfully reduced the number of suppliers from over 60 to just three.

Additionally, they consolidated their volume of core and key materials at the mill level, securing metals for the long term by directly engaging with mill partners. This approach was truly a game-changer.

In summary, the granular part-level information captured via Part Attribute Characterization enabled the customer to make significant strides in their Supply Chain Optimization journey. SDX then became the single system of truth for orchestrating the collaborative purchase of common raw materials. They focused on their Tier 1 suppliers, and then consolidated the purchase of common raw material volumes with best value mills and distributors. They also mapped supply networks below the Tier 1 supplier, gaining insights into where additional parts and materials were sourced. This allowed them to consolidate and leverage raw material volumes globally, thus simplifying their supply chain, reducing costs and improving their risk posture.