Advanced Sourcing

Triumph has approached supply chain from many angles, including supply cost, purchasing, and engagement with OEMs.

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Should cost analysis can provide insight into structural costs and risk profiles to support the fact base for OEM negotiations.

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“What Should it Cost?” --- Our Perspective on Should Cost

Description

• A detailed expectation of what subsystems “should cost” given reasonable expectations of operational efficiency and profit levels

• A cost model developed from multiple sources

• A tool for identifying primary cost drivers in labor, materials, and supplier subcontracts

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Importance

• Serves as the basis for required negotiation

  • Aids in validating a cost target

  • Expands labor, material, and supplier fact base

  • Informs future negotiations with cost visibility

• Allows for pursuit of cost improvement opportunities

  • Serves as common ground to understand cost

  • Identifies and prioritizes performance gaps

• Facilitates evaluations and decisions for related trade-offs

• Drives down costs to achieve market pricing (where there are few competitive options)

Our should-cost approach goes beyond conventional levels of detail and fidelity --- this is key to getting better results