Amsterdam/Toulouse, 29 May 2008
EADS and its five Divisions have selected 28 preferred and strategic suppliers for engineering services out of the existing pool of around 2,000 suppliers. This is in line with both a continuation of EADS’ global sourcing strategy and the Smart Buying objective of the Power8 programme. By deciding on this limited number of first tier-one suppliers, four Indian and 24 EU-based companies were selected, thus successfully increasing the company’s footprint in low-cost and/or US dollar based countries.
Currently EADS spends about € 2 billion per year on engineering services – services, which encompass for example research, modelling, flight physics and design of aircraft. The consolidated supplier basis will lead to significant cost reductions. As an aligned structure of all EADS Divisions, it will apply from now on and for the entire EADS Group. The number and size of work packages, which are given to these preferred suppliers, will increase gradually until 2010.
“The optimization of our supply chain by defining a limited number of capable and reliable tier-one suppliers is an essential step towards securing our global competitiveness,” said Hans Mundt, Chief Procurement Officer of EADS. “By increasing our global industrial footprint we support market access, we optimize the total cost of ownership, we better balance our US dollar exposure and attract new resources. All that adds value to the system.”
EADS is a global leader in aerospace, defence and related services. In 2007, EADS generated revenues of € 39.1 billion and employed a workforce of about 116,000. The Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and EADS Astrium, the European leader in space programmes from Ariane to Galileo. Its Defence & Security Division is a provider of comprehensive systems solutions and makes EADS the major partner in the Eurofighter consortium as well as a stakeholder in the missile systems provider MBDA. EADS also develops the A400M through its Military Transport Aircraft Division.
