Airbus 2014 Annual Report Download - page 61
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Please find page 61 of the 2014 Airbus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.SUPPLY
CHAIN
COLLABORATING WITH SUPPLIERS
In 2014 several major programmes reached critical phases
in the production ramp-up, bringing significant challenges
also for the supply chain.
Suppliers are a key contributor to the Group’s success, de-
livering vital systems, sub-systems and components for all
of the Group’s major products. Overall, external sourcing
turnover represents more than two thirds of Airbus Group
revenues.
Within a number of aircraft programmes, production ramp-
ups are under way. To manage the challenges and main-
tain tight control on the supply chain, joint improvement
programmes have been introduced with suppliers. Within
series programmes in the Airbus Division for example, such
initiatives, combined with continuous supplier develop ment
activities, have led to a reduction in missing parts of more
than 60%.
SUPPLIER VOLUMES GROW
In line with the Group’s revenues, external sourcing turnover
increased slightly to some €43.0 billion in 2014. In terms of
material category – with each category relating to the entire
Airbus Group product range – propulsion systems account-
ed for the largest share at 30%, followed by systems and
equipment with 16% and structure and airframes with 14%.
Over the past years, Airbus Group has continued to in-
crease the volume of its dollar procurement as part of its
strategy of reducing exchange rate risk. In 2014, 53% of ex-
ternal sourcing turnover was booked in US dollars (2013:
51%), 42% in euros and 4% in pounds sterling.
GLOBAL SOURCING
While European suppliers accounted for 70% of Airbus
Group external turnover in 2014, 30% was sourced from the
rest of the world. Supporting the Group’s international
expansion and production ramp up, country sourcing
offices in China, India, the United States and Brazil have
helped to identify a high-quality and diversified base of
suppliers beyond the Group’s traditional home countries.
GREATER INTEGRATION
To support integration of Group-wide sourcing activities, the
governance and coordination across the Group has been
further strengthened by implementation of Functional
Targets between the Group Head of Procurement, who was
appointed to the Airbus Group Executive Committee, and
the Heads of divisional procurement.
01
SUPPLIERS ARE KEY PARTNERS
FOR THE PRODUCTION RAMP-UP
01 - The Beluga aircraft
are an integral part of
Airbus’ supply chain
For more detailed information,
please refer to the
Corporate Responsibility and
Sustainability Report 2014
ANNUAL REVIEW 2014
59
03 BUSINESS EFFICIENCY