Supplier Consolidation
Transition of long‑tail suppliers into a managed supply base to reduce supply chain noise and improve materials flow.
The client’s supply base of approximately 165 suppliers had become fragmented, with a significant “long tail” of 124 suppliers accounting for around 10% of spend but generating disproportionate procurement and logistics effort.
Major Aerospace Company (under NDA)
Civil Aircraft Seating
Supplier consolidation, supply chain & purchasing transition support, inventory transfer/cutover control, floor-stock (POU) materials management, and operational reporting cadence
Five phase project over 1 year
- Agreed parts and vendors identified and signed off jointly
- Part-level sign-off documentation created, controlled, and tracked
- ERP system updated to reflect floor stock management approach
- Structured cutover plan delivered with:
Weekly reconciliation process
Two weeks’ demand coverage maintained
Defined sales order cutover point
On-hand inventory transferred to RTA facility under controlled process
All received stock verified within five days, with issue reporting in place - Open purchase order book reconciled, including:
Cancellation of orders where possible
Controlled transfer of incoming receipts where required
Standard floor stock supply model implemented post-cutover - Ongoing management reporting established, including:
Kitting status reports for senior buyers
Named buyer interface for accountability
Weekly review cadence to maintain control
Client Requirement
The client’s objective was to simplify and stabilise materials flow by consolidating the long-tail supplier population into a single, managed supply base without disrupting production.
Internal priorities were centred on the client’s core competencies (design/manufacture/market position), while logistics and the day-to-day management burden created by low‑spend suppliers were constraining throughput. The requirement therefore called for a partner-led transition model that could be executed quickly, with clear governance, a controlled inventory cutover, and ongoing visibility for senior buyers to ensure continuity of supply while reducing supply chain “noise.”
The Solution
Strategy
A structured supplier migration programme was defined to transfer control of the long‑tail supply base to RTA during 2003, under a revised commercial model designed to improve cost transparency and operational control. The strategy focused on phased transition to reduce operational risk, concentrating effort on the long‑tail supplier set (124 suppliers) while protecting continuity across strategic suppliers representing the majority of spend.
A disciplined governance model was established around part-level sign‑off, weekly reconciliation, and a defined cutover mechanism, ensuring that procurement ownership, inventory responsibility, and supply execution transferred in a controlled manner rather than through informal “hand‑offs.”
Design
The transition was designed as an end-to-end process flow from initial part/vendor identification through to post‑transfer supply execution.
Key design elements included: (1) formal sign‑off documentation and approval routing; (2) ERP (JDE) updates to reflect floor‑stock management; (3) weekly exception reporting to surface signed‑off parts not yet transferred and parts still linked to transferred vendors; (4) a cutover sales order to provide a clean transition point; and (5) an agreed verification window for inventory counts/quality issues following transfer.
Execution
Execution followed the defined migration phases across the 2003 plan window, with cross‑functional involvement between B/E purchasing, B/E manufacturing engineering, and RTA.
Sign‑off forms were generated, reviewed, and either approved or rejected; JDE was updated to reflect floor‑stock status; and weekly reconciliation aligned transferred items, vendor linkages, and open order book actions.
Inventory cutover was controlled by retaining two weeks’ demand coverage, highlighting a specific sales order as the cutover point, transferring balances to the RTA facility, and completing verification and issue reporting within five days.
Post-cutover, RTA commenced supply under the standard floor‑stock model, supported by weekly kitting status reporting and an assigned buyer interface to sustain operational rhythm and ensure rapid issue escalation.
The outcome
Ready to work together
Get in touch with our team to discuss how RTA can support your operations.