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Global Supplier Process Streamlined

Issue 2 - 2019
by Bircem Özekici - COO and Co-founder of DAMISE

Whether we come across new technology via breaking news or if it is something that suddenly creates an unexpected competitive environment, the intensity of the change in results is limitless as technology expands. What is essential in order to manage an environment with an ever-increasing rate of change, volume and scope is anchored in how we react, and whether we look at these events with cautiousness or with an optimistic and opportunistic perspective. Now is the time to explore, don’t play the waiting game for the right moment as challenges never cease. Take control today by calibrating yourself and your business to align with the dynamic pace of technology.

Among the most common industries the aviation industry is one of the industries most effected by the results of innovations in technology. According to KMPG’s CEO Outlook (2016), the extent of the impact will be tremendous, and 41 percent of CEOs estimate that companies will undergo serious transformations within 3 years. In the previous year`s survey, 29 percent of CEOs thought so. In addition, 82 percent of survey respondents are concerned about whether their company`s products or services will meet the needs of customers in the next 3 years, and they have good reason to be concerned. In 2019, 92 percent of CEOs in Turkey (who were in the 44 percent range in 2018) lead drastic digital changes in the company rather than wait for the winds of change to hit. Most of the changes occurred in operational lines. The key challenges the aviation industry needs to consider include- strengthening the supply chain, effective program management, and use of new and advanced technologies to become more efficient. The figures below explain the key drivers of 2017 global aerospace and defense industry revenue and 15% of this revenue comes from tier segments. (source: Deloitte 2018 Global Aerospace and Defense Industry Financial Performance Study)

In a more sustainable economy, supply chain development is more essential than it was in the past. We can observe that each OEM establishes its own supply chain portal and asks their potential suppliers to follow up from their site. For confidentiality, this is crucial, however, from the supplier perspective it becomes a burden because the number of OEMs in the industry is high and the suppliers have to enter almost the same data to each OEM again and again.

Moreover from the procurement side of the OEMs, the tasks of the procurement department are to find vendor companies and collect information about their capacities, sales and credit terms, distribution types and market prestige, buy the best possible product at the lowest cost, ensuring timely delivery of the goods received by the factory, to warn all relevant departments in case of delays in delivery, to carry out the necessary procedures for the acceptance of the delivered goods and to assist in quality control of acceptance inspections and so on. This chain requires a lot of automated work and it is also time consuming.

Therefore, OEMs prefer to work with flexible suppliers who can provide services at an affordable cost and at the desired quality level, against demand changes. To find companies with the desired standards and criteria is also a complicated process. Most of the time this situation leads to the importation of the products produced locally in our country as they are not known and cannot be found.

On the other hand, it is understood that the most important problems for SMEs are the lack of qualified personnel, procurement of raw materials and semi-products, technology, product design and development, standards not being understood and quality problems. In addition, because they have difficulty in introducing and branding their talents and products, they cannot get a share from strategic international markets.

In addition, the global supplier processes of international firms are very burdensome and challenging, making the implementation processes of Turkish firms difficult. In order to include Turkish companies in these processes and to increase domestic and national production, knowledge, information and technology should be transferred to the lower-level supplier candidates by using healthy and correct resources. At the same time, this will lead to the formation of a qualified employee culture.

When new product designs and R & D processes are taken into consideration, the fact that developers in this industry are not aware of the existence of another product, the fact that the same product is made by different companies at different times in different places results in a wasting of our national resources and time. As potential investors cannot access the product inventory, the situation of critical and strategic products for our country is not being commercialized.

DAMISE was established to resolve these problems and to become a pre-strainer so to speak, a viable marketplace. The company name DAMISE is the abbreviation of the Defense Aerospace Marine Industrial Supplier Ecosystem. Our aim is to gather all the stakeholders of the industry within an Ecosystem module, to provide training and education through the DAMISE Academy, to help innovative projects to commercialize and to support branding by connecting investors via our ‘Innovality’ module.

DAMISE Ecosystem

The DAMISE Ecosystem provides all stakeholders in the defense, aviation, Naval, satellite and space sectors the opportunity to switch to a digital ecosystem with a single click. In the system, sectoral codes, certification information, technical specifications, visuals, and tested capabilities of products will be introduced and readily displayed for potential buyers with an essential ease of access. At the same time, national and international sectoral announcements and tenders will be shared quickly and effectively from a single point to help sector players gain market share. In addition, third-party organizations such as financial institutions, testing and certification centers, laboratories, law firms or insurance companies are also involved in this system. The DAMISE ECOSYSTEM will create a network where everyone can browse the market in the sector without any boundaries.

DAMISE Academy

The DAMISE Academy will offer our companies the opportunity to reach industrial training from a single point. With DAMISE, participation in international markets will occur by means of an Industry Glossary and Terminology, defined Processes of Being a Supplier of Global Firms and needs analysis of firms. By connecting engineers, company owners and sector players to the best trainers and institutions around the world, DAMISE helps people to reach their goals and get the right information through the right channel. Thanks to the categorization methodology, DAMISE offers training proposals that may be needed for companies within the framework of the training you receive. Companies provide in-house training of their employees through training packages. It will provide one-stop access to industrial analyses, reports and data required by stakeholders.

DAMISE Innovality

DAMISE Innovality will provide our companies and project developers with a platform for the promotion and commercialization of R & D Projects in the defense, aerospace, satellite and space and shipping industries. It will also allow technology transfers between countries, institutions and individuals to meet. In this way, while the dependency on the foreign is reduced, it will be ensured that the sector gains advanced value-added technologies. Thanks to the classification methodology, the investor and the project developer will meet at a common point. Not only individual project developers but also corporate firms can add R & D projects to the system. In the DAMISE Innovality platform, projects are brought together with reliable and visionary investors, aiming for rapid commercialization and growth of companies.

To be part of this new opportunity please contact us from bircem.ozekici@damise.com.


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