1. Nick Van Buren, Antonio Beltran,
Consuelo Rojas, Dennis
McMahon, Elisha Smith, Luis
Sucre, Chad Tilby
2.
3. About Safran
When was it founded?
3 Core Industries of Safrani
Organizational Structure of Safran
Purchasing Network - 60% of sales in SCM
Purchasing function
Safrans footprint in the United States
4. About Safran
Variety of Products offered
Corporate Strategy - TQM & JIT systems
What Safran is doing in the near future
Types of transformation processes employed
Volume of each product
Safrans purchasing policy
5. Purchasing Management Function
French suppliers represent 52% (€4.5 billion) of
the total purchasing volume
French Safran companies Purchasing Volume :
€6 Billion
USA suppliers represent (€1.6 billion) 18% of the
total purchasing volume
7. Safran’s Integrated Buying (The Nine Steps)
A network of 1300 buyers located in Safran + affiliated companies
8. Recognition and Specification of Needs
Suppliers for a Supplier
The Purchasing Procedure
Central Role of the Buyer
Business Mediation Charter
Code of Ethics and CGA Process
9. Supplier and Price Analysis
Role of Negotiation
Two-Thirds of 50% SME suppliers
10. Purchase Orders and Contracts
Conformity Of Order
Structure Your Proposal (RFP)
Purchase order (PO) will be drawn up on the basis of the proposal agreed
● Check The Terms Of The Order
○ Agreement to the goods or service
○ Agreement to the price
○ Agreement to the delivery date
○ Delivery and billing addresses
11. Delivery and Quality Inspection
Inspecting in Stages Process
Automated reception
Suppliers Quality Systems
EN 9100, 91110, ISO, EASA etc.
Safran's Three Values of Quality
1. Customer Satisfaction
2. Continuous Performance Improvement
3. Enhancing Competitiveness
12. Payment and SRM
Two Methods for Filing Invoices
Electronic or Non-Electronic
Return of acknowledgement of the order receipt to the purchaser
The Purchasing team keeps a high priority around the product's entire life
cycle
Continuous Improvement
13. Analysis of Existing Practice
Safran Purchasing Process
Supplier Selection
Challenges facing Safran
Strengths and weaknesses
14. Day in the Life: Michael Shields
Educational Background
Previous Business Experience
Safran Experience
Advice
Not only about analytics, but mostly about relationships. It’s back and forth. If you have a good relationship, and if you need something ASAP, you can get it. Top supplier for Safran, is a difficult relationship. It’s important for them to know who they are dealing with, public vs private, there is always incentives to better relationships. Safran does everything in a plane but interior. Earlier this year, they purchased Zodiac which does interior, so they made the bold move of buying their supplier instead of their supplier parts.
They are the leader in building helicopter engines, wires and harness, electronics, composite. They make UAV’s. The are currently working in morpho.
Group purchasing missions:
Production purchasing
Define a policy for each commodity and supervise its implementation Develop synergies and coordinate actions
Indirect materials and raw materials: Centralized in Safran Purchasing