This document discusses value stream thinking and an integrated partnership approach to logistics. It emphasizes understanding the customer's perspective of value for the entire product delivery process. Silos between processes disrupt value flow and create inefficiencies. The company focuses on lean logistics techniques like flexibility, reduced costs/time/inventory, and improved quality to maximize customer value. Case studies demonstrate identifying a process's current value state, creating a future improved state, and measuring key performance indicators to increase specified value.

1. Value Stream Thinking
through integration

2. Working exclusively in aerospace logistics has taught us a thing or
two over the years. The one big thing that stands out is:
The customer only cares
about the “entire product”,
as a whole entity…

3. …that’s not just the manufactured
component, but the whole service
that delivers the “entire product” to
them

4. What this means… is that the value
of any component is made up of the
entire series of process steps, within
the business and it’s supply chain…
….not just it’s own internal
manufacturing processes!

5. When silos exist, or walls between
those processes, it disrupts the flow
of value and creates inefficiencies
and waste
…and unhappy customers

6. We are value
stream thinkers.
We work with our customers to ensure that the
whole series of processes – your
manufacturing and our logistics - work together
to deliver value to your own customers.

7. This means…an integrated
approach: A Partnership.
We believe that collaboration
and cross functional problem
solving and continuous
improvement - our team
working with your team - is only
possible in Partnership
manufacturing
logistics

8. This means…an integrated
approach: A Partnership.
…and that Partnership working
is the key to success in today’s
demanding and dynamic
aerospace industry.
manufacturing
logistics

9. A Partnership requires a
common language…
lean

10. Lean logistics, just like lean
manufacturing, means
increasing flexibility, reducing
cost, time and inventory, and
improving value
COST & TIME
VALUE

11. reducing time & costs
...using lean techniques, we help our customers to
eliminate those processes (from their logistics) that do not
deliver value
Our approach to lean…
increasing flexibility
…we help our customer to meet fluctuations in supply
and demand & fast turnaround times in their supply chain
by configuring our own resources flexibly to meet their
requirements
reducing inventory
…our customers only use our service on an order by order basis

12. improving product value
…by increasing flexibility, improving quality and reducing
costs, we make sure that the customer doesn’t pay for
organisation inefficiency and waste.
Our approach to lean…
improving quality
….we work in partnership with both our suppliers
and customer to continuously review and improve
product and service quality

13. So, how we do it?
…we start by understanding how
customer value is delivered…

14. Increasing flexibility
Reducing inventory
Reducing time & costs
Improving quality
= Improving product value
Value Stream thinking
4. On-going
measurement &
improvement
3. Create future state
in adding more value
2. Identify current
state in delivering
value
1. Understand value
delivered to
customer

15. …and is completed by agreeing
clear improvement Key
Performance Indicators, in order
to deliver, and increase, the
specified value

16. We work across the Aerospace Supply Chain
Raw Materials
Suppliers & OSP’s
Sub-component
Manufacturers
Principal Component
Manufacturers
Engine Module
Suppliers
Engine Module
Suppliers
Aircraft OEMs
Aerospace
Engines OEMs
Repairs &
Maintenance
OEM
TIER 1:
Systems
Integrator
TIER 2:
Sub-assembly
manufacturer
TIER 3:
Make to print
components
TIER 4:
Materials &
Processes

17. Distribution:
• Express delivery of parcels, pallets across UK,
Europe and the world,
• Reverse flow of re-usable commodities (e.g.
packaging flight cases)
Our Integrated Services cover…
Managed Logistics:
On site supply chain services such as goods
receiving, packing, dispatch and store management

18. Commodity buyer of Packaging as a single
source:
• Procurement of consumable and reusable
packaging from flight cases, card and wood.
• Packaging refurbishment
Our Integrated Services cover…
Warehousing:
• Storage of high value goods on a temporary or long
term basis
• Consolidation and delivery of batch sensitive parts
fed from multiple vendor locations across the world

19. …and we flex our services to
respond to our customer’s
requirements of delivering value
to their own customer,
wherever they are in the supply
chain…

20. Case Study 1: UTC, packaging supply, storage & re-supply
Raw Materials
Suppliers & OSP’s
Sub-component
Manufacturers
Principal Component
Manufacturers
Engine Module
Suppliers
Engine Module
Suppliers
Aircraft OEMs
Aerospace
Engines OEMs
Repairs &
Maintenance
OEM
TIER 1:
Systems
Integrator
TIER 2:
Sub-assembly
manufacturer
TIER 3:
Make to print
components
TIER 4:
Materials &
Processes
Services:
• Distribution
• Warehousing
• Commodity
Buying

21. Tactic 1. Understanding value delivered to customer
Tactic 2. Identified current state in delivering value
Tactic 3. Create future state in adding value
The difference we made…
Results
• We reduced stock holding value from 65K to 43k
• We created over a 1,000 sq ft of space for use by the client
• We took over the commercial role of ordering from the UTC supplier
base of 8 with a clear objective to work closely with each supplier to
improve quality and supply
• We entered into a continuous improvement programme
• Happy customer who was able to expand their operational footprint
without need to build or outsource

22. Case Study 3: CDS, improvement to delivery driver
communication and final proof of delivery
Raw Materials
Suppliers & OSP’s
Sub-component
Manufacturers
Principal Component
Manufacturers
Engine Module
Suppliers
Engine Module
Suppliers
Aircraft OEMs
Aerospace
Engines OEMs
Repairs &
Maintenance
OEM
TIER 1:
Systems
Integrator
TIER 2:
Sub-assembly
manufacturer
TIER 3:
Make to print
components
TIER 4:
Materials &
Processes
Services:
• Distribution

23. The difference we made…
Results
• The cycle time from Job entry to collection time improved on
average by 45mins
• Deliveries could be tracked by the customer without the need to
contact despatch
• Proof of delivery was instant leading to a time saving of 15 hours
per month
• Proof of delivery signatures could be e-mailed to our customer
extending agile response time beyond our customer
• Historical delivery data was used to create a fixed collection and
delivery routes
• A monthly saving of £2,800 due to better utilisation of the fleet
Tactic 1. Understanding value delivered to customer
Tactic 2. Identified current state in delivering value
Tactic 3. Create future state in adding value

24. Our History…
2004
ON LOGISTICS
FORMED BY NICK
BENNETT
FOUNDER AND
CURRENT
OWNER
2006
• NEW BUSINESS VALUE
PROPOSITIONS INTRODUCED
SPANNING DISTRIBUTION AND
WAREHOUSING
• OPENED OUR FIRST WAREHOUSE
IN TAMWORTH
2005
FIRST
AEROSPACE
CONTRACT
SIGNED

25. 2008
FURTHER
EXPANSION OF
PARCEL AND
PALLET
DISTRIBUTION
BEYOND THE
MIDLANDS
2007
SECOND
AEROSPACE
CONTRACT
SIGNED
ON LOGISTICS WON
IT'S THIRD SITE
AEROSPACE
CONTRACT
2010 2012
SECOND WAREHOUSE
OPENED TO MEET THE
INCREASING DEMAND FOR
FULFILMENT

26. 2013
• AN INVESTMENT OF
£50,000 INTO A NEW
WAREHOUSE
MANAGEMENT SYSTEM
• AN INVESTMENT OF
£5,000 INTO PORTABLE
VAN TECHNOLOGY
2014
• ALL
AEROSPACE CONTRAC
TS WERE RENEWED
AND SIGNED
• PLACED OUR FIRST
ORDER OF PACKAGING
FOR RE-SALE INTO
AEROSPACE
• JOINED THE MIDLAND AEROSPACE
ALLIANCE AND ADS
• ISO9001 JOURNEY STARTED
• REFURBISHED OF WAREHOUSE TO
MEET INCREASING DEMAND FOR
AEROSPACE STORAGE
• NEW WEB SITE LAUNCHED

27. T H E F U T U R E2015
• FURTHER CONTRACT
EXTENSIONS WITH MAJOR
AEROSPACE PROVIDERS
• COMMENCED (DLF) OF RAW
MATERIAL INTO AEROSPACE
MANUFACTURING VALUE
STREAMS
• COMMENCED BS
OHSAS18001 JOURNEY
• WON FURTHER
PROCUREMENT BUSINESS
• CONSOLIDATED OUR
POSITION AS A BEST IN
CLASS AEROSPACE
INTEGRATOR

28. Accreditations and associations

29. A final thought…
“There are so many men who can
figure out costs, and so few who
can measure value.”
Shigeo Shingo
(Japanese industrial engineer considered the
world’s leading expert on manufacturing
practices and the Toyota Production System)