Why Supply Chain Management (SCM)?
Background
What is Supply Chain Management?
The integration of materials and information amongst
Centers and Programs, suppliers, other govt. agencies,
and international partners to plan, execute, and operate space
programs with a common spare and repair philosophy in
order to minimize system-wide life-cycle costs and risks
while satisfying program level requirements
How is SCM different from Logistics?
Embeds Technology Insertion in the Process
Production Processes -vs- Material flow focus
Integrated end-to-end
Greater supply base situational awareness
Focused on product life cycle management
Reduces Cost
(SCM impacts 90% of a Program’ s recurring cost)
Manufacturing processes -vs- material flow focus
Reduces proliferation
Part number and procurement duplication
Number of qualified suppliers needed
Cost of holding Inventory
Reduces unit and overhead cost with larger buys
Integrated end-to-end,
Embeds Technology Insertion
JIT practices (Pay-as-you-go)
Focused on Product Lifecycle Management
Enables collaborative forecast demand planning
Supports changing hardware TRL
Reduces Schedule Risks
(Suppliers account for 75% of Space R&D)
Greater supply base situational awareness
Identifies risk of capability loss
5 year gap for ~1500 Shuttle active suppliers
Manufacturing Processes -vs- Material flow focus
Maps supplier capabilities to future requirements
Integrated end-to-end
Embeds technology insertion
Allows for more flexible design characteristics
Improves manufacturing readiness levels
Improves Reliability/Quality
(Supplier health impacts reliability/quality)
End-to-end integration,
Embeds Technology Insertion
Improves cross-program impact assessments
Cross Program/Agency DMSMS mitigation
Manufacturing Processes -vs- Material flow focus
Enables supplier stability/viability forecasting
Greater supply base situational awareness
Increases ability to address counterfeit parts
Increases ability to identify problem suppliers in a timely manner
The Modern Evolution of Supply Chain Management