Logistic Support: Honoring Commitments

Eurocopter is determined to become the reference in logistics support to improve customer satisfaction. The results are starting to show as an important milestone was recently reached: An on-time delivery rate of 95%.



© Eurocopter / Éric Raz
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© Eurocopter / Éric Raz
Cliquer pour agrandir

"As part of our continuing efforts over the past few years, we launched a program in 2006 called RIPART(1) to significantly improve our performance levels,” explained Michel Macia, Eurocopter Director of Logistics Support. “The program is focused on three main areas: The anticipation of needs, the reliability of the distribution system and strict control over the procurement chain. Our end goals are to honor our commitments and make more parts immediately available.”

Anticipating Needs
Effectively anticipating needs requires a perfectly-adapted organization and high-performance tools for gathering and processing information, and managing worldwide resources. For this reason, €16 million in IT investments were made and new job profiles were created: Regional Logistics Forecasters(2) and Logistics Field Representatives(3) are two examples.
The number of parts covered by the forecasting system has increased by 50%, and new methods are gradually being implemented to systematically consult customers and anticipate their specific needs. This improved resource management has also made it possible to increase local coverage: 70% of deliveries are now made from the platform closest to the customer.

A Reliable Distribution System
A pull-flow system based on actual needs is now being used. The processing cycles have been shortened by 30% and a complete tracking system now covers all the different phases. For example, new services such as T12 have been created, which requires orders to be processed the same day and deliveries to be made the following day before 1 p.m. Customer Logistics Cells that are entirely focused on customer needs have also been created. The cells include personnel from many different activity sectors who use innovative monitoring tools to ensure rigorous management of outstanding orders. The cells also offer customers a dedicated contact (Customer Logistics Managers) to improve satisfaction: Frequent customer visits, monthly reports, weekly performance monitoring, and the implementation of improvement plans are some of their assigned tasks.

Strict Control over the Procurement Chain
Eurocopter’s relations with its suppliers have been reviewed to give the latter a clearer picture of what to expect over the next three to five years. The suppliers’ industrial capacities (both in terms of resources and investments) now match the needs of the fleet currently in service. Procurement flows have also been restructured to make the cycles shorter and more adaptable. Key indicators to measure how well suppliers honor their commitments have been introduced, and Eurocopter has initiated a process together with its suppliers to ensure continuous improvement and follow-up. These efforts have already borne fruit in Europe, and the worldwide deployment phase is now underway. The United States, Brazil and Asia will soon be covered by the system. Mr. Macia summed up the results in this way: “Although we still have some critical procurement issues to work out, the procurement bases, overall structure and processes have now been defined and have clearly proven to be effective: Our on-time delivery rate is now approximately 95%, and we’ve cut late deliveries in half over the past two years. Our next challenge is to ensure that all our customers benefit from the same high levels of performance.”

(1) The right part, at the right time, in the right place
(2) Forecasters who gather data in specific areas and enter it into the Eurocopter forecasting system
(3) Tech reps in contact with customers who can anticipate their needs for erratic parts

ARTICLE: CHRISTIAN DA SILVA


Initial Results

- The on-time delivery rate jumped from 50% in early 2007 to 95% by the end of 2008
- The availability rate for parts has stabilized at 90% - AOG orders are down 27% from 2007, even though the fleet has increased
- Back orders were reduced by 50% between 2006 and 2008

Testimonies

“Logistics support has gotten much better over the past 18 months. There are still some parts that are hard to obtain: They only exist in small quantities and the delivery time can be long. But communications with Logistics Support has really improved. Today, we have a single contact who has been specifically assigned to work with our company. We know that we can always talk to the same person–omorrow, next week, next month. This is a great way to develop long-lasting relationships.”
Kevin Shields, Vice President of Heli-Support Inc.

“Now that certain shippers are working right at the Eurocopter plants, parts that are picked from stores can be given directly to the shippers for final delivery to the customer. Routine orders can be filled within 24 hours, which is a real plus for customers as they won’t necessarily have to go through the AOG service now. You can also track your part, from the time it’s packaged through to delivery.”
Guillaume Weber, Purchasing Department at Hélicoptères de France Maintenance

“I wanted to let you know how happy I am with your new T12 service, which makes it possible for our company to obtain parts just twelve hours after placing orders. Our contact at Eurocopter is always available and extremely responsive to our requests. The AOG service is also very efficient, and the personnel there do everything possible to get critical parts to us.”
Anne-Françoise Fixot, Customer Service at Secours Aérien Français Industries