Raytheon Streamlines and Automates its Material Requirement
Planning Processes with Exostar’s Supply Chain Platform
Company Profile
Raytheon is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing, effects, and C3I systems, as well as a broad range of mission support services.
Raytheon Key Facts
Founded in 1922
Headquartered in Waltham, MA, USA
73,000 employees worldwide
$23.2 billion in 2008 sales
2008 year-end backlog of $38.9 billion
Customers in over 80 countries
Over 8000 programs servings customers on every continent
Hosted Solution Fosters
Collaborative Planning with
Suppliers to Reduce Costs, Risk, and Cycle Times
Background – Controlling and Optimizing a ManuallyIntensive Task
As one of the world’s largest aerospace and defense (A&D) firms, Raytheon is responsible for the implementation and delivery of a substantial volume of highly-complex products and services to its customers. To achieve its objectives within stringent cost, schedule, and quality constraints, Raytheon relies on a global, multi-tier network of suppliers.
In this multi-enterprise operating environment, Raytheon must ensure that each of its suppliers provides the required quantities of goods at precisely the right time to keep customer orders on track while minimizing inventoryrelated expenditures and handling. The development and communication of these timelines is accomplished via the material requirement planning (MRP) process. Like most large A&D companies, Raytheon’s 6 business units each function with a significant degree of autonomy. As a result, each business unit over time created its own MRP processes best suited to its specific requirements.
These MRP processes were