Barloworld Optimus and AgustaWestland invite you to Defence Contractor Seminar

Following the work completed by supply chain planning specialists Barloworld Optimus over the past year on the Integrated Operational Support (IOS) contracts for the Sea King and Merlin Helicopters, AgustaWestland will be hosting a seminar at which Barloworld Optimus will review the key role effective inventory management plays in ensuring a successful IOS contract. Barloworld Optimus will draw on lessons learned and the solutions developed from the "Bid / No bid" decision process through to today's challenges of maintaining and improving inventory availability in line with customer expectation.

"In the Defence Industrial Strategy White Paper presented to parliament in December 2005, the MoD set out the principle of sharing risk with suppliers," explains Jonathan Tucker, Head of Operations at Barloworld Optimus. "In the past, MoD staff were required to second guess both demand and supply. Their traditional solution to reducing the risk of stock outs was to hold large inventories. Now, the MoD feels that the Original Equipment Manufacturer (OEM) is in a better position to manage this risk and should therefore take responsibility for this inventory and in exchange guarantee a level of service."

Suppliers to the MoD can therefore no longer just simply provide equipment and spare parts on demand. They must actively and accurately predict future demand based on what is likely to fail in the field and ensure fast and efficient delivery of replacements. Effective inventory management is therefore at the heart of this problem.

Defence Contractors Seminar will look at how companies can, through effective inventory management, mitigate the risk associated with this additional responsibility while at the same time maintaining or improving service levels to the MoD.

"Devolved responsibility need not be a worry for companies seeking to bid for contracts with the MoD. The tools are already available for companies to accurately determine stock requirements and effectively manage the supply chain on behalf of the MoD," says Tucker. "In fact, these new contracts are a golden opportunity for suppliers to grow their business, increase turnover and improve the relationship with their customers."

Defence Contractors Seminar takes place on 26 March at AgustaWestland Headquarters in Yeovil and is by invitation only. Attendance is a must for any organisation that is serious about bidding for contracts or renewing contracts with the Defence Logistics Organisation. For invites, interested parties are asked to contact Laura Milusauskaite, Group Marketing Manager at Barloworld Optimus.