Strategic Sourcing and Supply Chain Goals

Ducommun employs strategic sourcing concepts, forming long-term supplier agreements and business alliances that ensure we can proactively support our customers’ business requirements.

Cross-site teams and internal commodity management processes allow us to approach our supply base as a single entity, one Ducommun, to maximize our buying power and create mutually beneficial business relationships with our suppliers. The resulting impact ranges from traditional cost savings initiatives to more advanced strategies such as supplier development and certification, supplier scorecards, integrated cost reduction, cross-functional commodity teams, and online supplier relationship management.

Our Goals

Ducommun will continually identify and act on new, one Ducommun opportunities while maintaining and building on the success of site-specific initiatives. Our goals include:

The continued reduction of total cost for direct and indirect materials, assurance of effective supplier quality performance, asset management through reduced inventories, supply chain management personnel growth, and development and use of continuous improvement tools to improve efficiency within our sites and supplier relationships.

Cost reductions will be accomplished through strategic sourcing and commodity management including the purchasing power of one Ducommun resulting in an increase of long-term agreements and supplier alliances.

The number of certified suppliers will increase as we continue to utilize and develop supplier quality management processes leading our supply base to six sigma levels of performance.

Purchased asset management supporting improved inventory turns will be effected through implementation of supplier managed and owned inventory programs and targets for raw materials, work in process and finished goods.