KEIRETSU CORNERS AT OUR 2019 CONFERENCE WE ARE INTRODUCING A NEW CONCEPT TO ENCOURAGE PARTNERSHIP AND COLLABORATION ACROSS THE SUPPLY CHAIN – KEIRETSU CORNERS. Relationships are key to successful aerospace supply chains and the essence of Keiretsu fosters that. At PNAA we believe the Keiretsu principles can benefit both customers and suppliers that are in the same space by providing opportunities for partnership. Read on to find out more about Keiretsu and the opportunity for your company to get involved during our conference. THE ESSENCE OF KEIRETSU You may have heard about Keiretsu when reading about successful Japanese companies; Toyota and Mitsubishi being prime examples. It is an approach that has stood the test of time, having been practiced for many decades. The essence of Keiretsu is to create relationships that are more open, global, and cost-conscious, while deepening trust, collaboration, and educational support. This is in stark contrast the arm’s-length relationships we often see in the aerospace supply chain, governed by as much contractual clarity as possible. Keiretsu provides the ability to avoid the hidden costs of doing business, while simultaneously contributing to competitiveness. A huge source of cost in the supply chain arises from the complications that emerge from the root cause of supply-chain problems, as manufacturers and suppliers maneuver to avoid blame, rather than focus on a solution. Keiretsu-focused relationships allow customers and suppliers to work together to detect a problem’s causes. At the same time educational collaboration can bring down the costs a charge, while high levels of dedication, innovativeness, and expertise all contribute to the competitiveness. CREATING CO-OPETITION OVER COMPETITION While the benefits of Keiretsu are clear in customer-supplier relationships, opportunities also lie elsewhere. In an era of supply chain consolidation through mergers and acquisitions, with a heavy focus on Vertical Integration, smaller companies must look for opportunity to enhance their relevance. By creating partnerships with other suppliers in the supply chain there is an opportunity to share in business opportunities and risks through the sharing of components, capabilities, excess capacity and development risks. GET INVOLVED AT THE PNAA CONFERENCE We have scheduled multiple opportunities for suppliers to gather at the conference to explore opportunities for Keiretsu. We have multiple Keiretsu Corners planned in the Multi-Purpose room. In addition, Paul Van Metre of ProShop ERP will be sharing his experience from founding Pro CNC (precision machining/engineering) through a training session titled "Become a trusted partner to your clients." The schedule will be shared daily in the PNAA Connect App. KEYS TO KEIRETSU Ì Ì SUPPORT Ì Ì COOPERATION Ì Ì TRUST Ì Ì GOODWILL KEIRETSU CORNERS Ì Ì Polymer/Elastomer Fabrication Ì Ì Tube and Duct Fabrication Ì Ì Avionics Manufacturing Ì Ì Metal Fabrications Ì Ì Interiors Fabrications Ì Ì Electrical Manufacturing Ì Ì Propulsion - Engines/APU PACIFIC NORTHWEST AEROSPACE ALLIANCE | www.pnaa.net 55