To maintain its preferred partner status with customers, DAHER is launching CAP 20 – a program to optimize purchasing strategy and support its suppliers
Paris, April 5, 2016 – At the Suppliers Day held on March 31, DAHER presented CAP 20, its program to optimize purchasing strategy for 2020. In a challenging market context, the objective is to maintain and develop the levels of performance required by the Group’s customers who are developing on growing markets but have demanding standards in terms of competitiveness and operational excellence. To bring about this transformation, DAHER will be taking action to provide support to and mobilize the efforts of its suppliers.
CAP 20, an essential program to stay competitive
On a complex market on which major key accounts from the aerospace and advanced technologies industries are requiring that their tier-1 equipment suppliers reduce their costs, DAHER is deploying an ambitious action plan, one that is necessary if it is to maintain and increase its level of competitiveness. So, on March 31, DAHER met with its main sub-contractors in Paris (nearly 400 people attended) to present its CAP 20 program, the objective of which is to achieve a reduction in costs of 20% by 2020 while strengthening the whole of the Group’s Supply Chain.
CAP 20 is in particular founded on DAHER providing its suppliers with assistance to help maintain and develop competitiveness and operational excellence.
This plan includes:
- Reorganization of the Daher Purchasing Department,
- Signing of long-term partnership agreements with strategic suppliers,
- Seeking to work with competitive challengers, in particular on international markets,
- Concentration of volumes with strategic suppliers, leading to a reduction in the size of the group’s supplier panel.
“While the market is under pressure, all major key accounts are requiring us to adapt and reduce costs. So, to stay competitive whilst maintaining our levels of performance, we need to work closely with our sub-contractors over the next five years. The CAP 20 program is thus a deliberate but essential initiative on our part to retain and win market share over the mid-term”, declares Didier Kayat, CEO of DAHER.