Company creates material service spinoff for IIoT, Industry 4.0

Fuel for your industrial production

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Le Bourget, June 19 2023 – Deutsche Aircraft and thyssenkrupp Aerospace announced today that they are entering into a long-term frame agreement for an integrated end-to-end supply chain solution for material management for the D328ecoTM aircraft. thyssenkrupp Aerospace, a division of thyssenkrupp Materials Services, will be responsible for supplying materials, from planning to sourcing, processing to warehousing, as well as logistics and distribution to Deutsche Aircraft and its European subcontractors.

There are three components to this materials management solution. The first is a digital control tower that thyssenkrupp Aerospace and DAG have co-created to manage the entire ecosystem and to coordinate all material flows, from sourcing to distribution. The second part of the solution sees thyssenkrupp Aerospace take full responsibility for the procurement of all materials. The third part is a materials hub and distribution center, that enables thyssenkrupp Aerospace to deliver materials just-in-time to the production lines of the multiple sub-contractors of Deutsche Aircraft. The entire solution has been built from the ground up to enhance end-to-end transparency of the D328ecoTM aircraft supply chain, ensure a seamless, on-time supply of materials to Deutsche Aircraft and its sub-contractors, and overall, to boost the resilience of the entire supply chain, a major concern in the aerospace and defense industry.

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Ilse Henne, Chief Transformation Officer of thyssenkrupp Materials Services, Nico Neumann, Chief Operating Officer of Deutsche Aircraft, Max Fahr, Vice President Supply Chain of Deutsche Aircraft, Florian Schasiepen, Business Development Manager of thyssenkrupp Aerospace, Patrick Marous, Chief Executive Officer of thyssenkrupp Aerospace, Dr. Fabio Maffei, Head of Business Development of thyssenkrupp Aerospace (from left to right).

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Patrick Marous, CEO of thyssenkrupp Aerospace, comments: “We are delighted to enter into this long-term agreement with Deutsche Aircraft and their subcontractors. The solution we developed is an object lesson in the benefits of co-creation. We spent one-year consulting with Deutsche Aircraft to assess their supply chain for raw materials. And because we built this from the ground up together with the team from Deutsche Aircraft, they get exactly the efficient, transparent, and resilient materials supply chain they need to ensure uninterrupted production of their D328ecoTM aircraft. Our global network of certified mills and our materials expertise further ensure Deutsche Aircraft gets the quality they need.”

Maximilian Fahr, Vice President Supply Chain of Deutsche Aircraft, highlights the trusting relationship the two partners developed over the one-year consulting period as a major factor in their decision to enter into this long-term agreement. He says: “Materials is key for manufacturing, and so is reliability and risk management. We got to know each other well and built a trusting relationship. The demonstrated capabilities of managing a complex network of capacities as well as the supply chain management skills to build an end-to-end solution from scratch, convinced us in partnering on this supply chain journey. These assets will support the D320eco program entry and prepare the ramp-up phase and long-term material provision.”

Sustainability is central to the design and manufacture ethos of Deutsche Aircraft, especially in the D328ecoTM. This supply chain solution was created with that in mind. Maximilian Fahr, says: “Resilience and reliability are essential to our materials supply chain and so is sustainability. By working closely together with the team from thyssenkrupp Aerospace, we developed synergies that will lead to reduced scrap. We increase material utilization through the demand consolidation handled by thyssenkrupp Aerospace and that plays an important role in reducing our overall carbon footprint and helping us on the way to more sustainable production.”

As part of the strategic further development \”Materials as a Service\”, thyssenkrupp Materials Services is focusing, among other things, on the consistent expansion of its service portfolio. thyssenkrupp Aerospace is taking another important step in this direction with this partnership with Deutsche Aircraft. As one of the world’s leading supply chain management and Third-Party Logistics (3PL) service providers in the market for raw materials, thyssenkrupp Aerospace offers end-to-end solutions to build resilient and digital supply chains. The company’s service portfolio is modular and scalable, encompassing all development stages from designing to managing and operating the supply chain for its customers.

thyssenkrupp Aerospace is a global leader in providing supply chain solutions for the aerospace industry. The company’s network comprises more than 40 locations in over 20 countries. Its more than 3,500 customers include the world’s largest aerospace manufacturers and their suppliers. thyssenkrupp Aerospace offers supply chain management and a wide range of supply chain and manufacturing services. These include raw material sourcing, warehousing, precision machining, third-party logistics and just-in-time delivery.

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IIoT service provider thyssenkrupp Materials IoT is automating the calculation and assembly of knives in steel service centers with the help of its new toii®.Cut software. The software solution digitalizes all preparatory and execution steps on slitting lines: from software-based knife calculation and the automated creation of knife assembly plans to digital tool management. It is a further module of toii®, the IIoT platform that digitizes and automates production in the steel and metalworking industry.

The high degree of automation on the shop floor leads to more efficient work and helps to sustainably save costs and reduce throughput times. In addition, the use of the solution means that users are significantly lightened in the execution of their everyday activities. This allows them to focus on infrequently occurring cases, such as calculated knives with warnings or error messages.

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thyssenkrupp Materials IoT introduces knife assembly software

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Cooperation between processing specialists and software developers

The toii®.Cut software was developed in a two-year cooperation with the processing specialist thyssenkrupp Materials Processing Europe. More than 15 years of experience in software product development and extensive industry knowledge from steel service centers have been incorporated into the development. The aim was to find a solution that could be seamlessly integrated into thyssenkrupp Materials Processing Europe’s existing IT system – including its own ERP system – in the ongoing digitalization of steel service centers.

With the help of the solution, the processing specialist is now able to meet increasing requirements such as on-time delivery, even for orders with small batch sizes or a large quantity of knives to be built. Handwritten work and paper-based processes are also to be replaced. \”From an operational excellence point of view, with toii®.Cut we have another building block to increase efficiency, process stability and quality at all our sites through digitalization,\” says Michael Panzer, Head of Operational Excellence at thyssenkrupp Materials Processing Europe.

Numerous features and continuous development

The web-based software solution promises its users a cross-site application with numerous functions and features as well as an intuitive user interface. With the aid of integrated tool management, the use of tools can be optimized and longer knife service lives achieved.

toii®.Cut is continuously optimized and developed further so that users benefit from regular improvements and innovations. Updates can also be made during operation across all machines and locations. \”We are in contact with our customers in steel service centers from all over Europe beyond the initial development process and have gained a very good understanding of their requirements. This allows us to ensure that our software remains up-to-date and also meets the individual needs of users,\” explains Sebastian Lang, Managing Director of thyssenkrupp Materials IoT.

thyssenkrupp Materials IoT GmbH was founded in September 2019 as a spin-off from thyssenkrupp Materials Services. The company supports its customers on the journey to Industry 4.0 with innovative IIoT solutions for the shop floor. thyssenkrupp Materials Processing Europe is a leading steel and aluminum service center serving processors from the automotive, electrical, construction and solar industries at eleven locations in six countries. The processing specialist offers tailored services and digital solutions for flat steel and nonferrous metals throughout Europe.

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• Solar plants with CO₂-reduced steel for sustainable power generation

• Steel services from thyssenkrupp Materials Processing Europe save over 60% CO₂ for the assembly systems of the solar parks

• Energy amortization time of the photovoltaic systems is shortened

Sustainable electricity generation from solar energy makes an important contribution to the success of the energy transition. Required photovoltaic systems do not emit any harmful exhaust gases or greenhouse gases during operation, but their production already causes CO₂ emissions. In order to keep these emissions as low as possible for the production of solar mounting systems for a photovoltaic plant, thyssenkrupp Materials Processing Europe will supply the PV mounting system supplier König from Moringen with CO₂-reduced steel from May 2023.

For an efficient solar energy expansion, a fast amortization time of the energy used for the production is important. To achieve this, the company from Lower Saxony relies on the expertise of thyssenkrupp: thyssenkrupp Materials Processing Europe supplies customized, CO₂-reduced slit strip and also offers precise documentation of the CO₂ footprint from production to delivery. The steel is the bluemint® recycled grade from thyssenkrupp Steel Europe. By using this steel, which is produced at the Duisburg location, around 64% CO₂ intensity can already be saved for the solar profile. König will also use the CO₂-reduced steel to offer solutions for sustainable planning and construction in drywall construction.

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Shorter energy amortization time of solar systems

Managing Director Meiko Fiedler comments on this step: \”We are pleased to be able to offer our customers an environmentally friendly solution for the production of special profiles with immediate effect by using CO₂-reduced steel. State-of-the-art profiling equipment in our plants additionally enables precise and efficient production that meets the highest quality standards. The result is stable, durable and reliable solar mounting systems that allow our customers to take a sustainable approach and reduce their environmental footprint.\”

Marcus Wöhl, CEO of thyssenkrupp Materials Processing Europe added: \”Alternative energy sources are hugely important to the success of the energy transition and with the advances in PV technology, it is realistic to expect that solar installations will play an important role in meeting energy needs in the coming years. We are pleased that through the cooperation with König, we were able to significantly reduce the CO₂ emissions of the assembly systems for solar parks in this project.\”

Certified Product Carbon Footprint calculation

The Product Carbon Footprint Calculator by thyssenkrupp Materials Services calculates the exact CO₂ emissions for each product supplied, from production to delivery. For each item, it is thus possible to transparently show all the steps from production, delivery, storage and processing to delivery to the customer in terms of greenhouse gas impact.

The sophisticated calculation logic of the PCF calculator has been certified by the international classification society DNV and also provides König’s team with exact values for the overall PCF calculation of the PV systems. \”With this transparency across our entire supply chain, we can now work with our partners to make our value creation processes as sustainable as possible,\” explains Marcus Wöhl.

bluemint® recycled starting material from thyssenkrupp Steel Europe

The bluemint® recycled starting material from thyssenkrupp Steel Europe is of particular importance for this project: the product can show a 64% reduction in CO₂ emissions thanks to modified input materials. A high-quality scrap recycling product is used in the blast furnace and the steel is characterized by a high recycled content. Sustainable products and solutions such as the PCF calculator are part of thyssenkrupp Materials Services’ BEYOND sustainability strategy, which is based on internationally recognized ESG criteria but goes beyond legal requirements and standards – hence BEYOND.

König GmbH & Co. KG is a medium-sized company that manufactures dry construction profiles and complex stamped parts for the German and international building materials wholesale trade in its own plants at its headquarters in Moringen between Göttingen and Hanover. In addition, the company has focused on the production of high-quality special profiles, among other things by developing its own assembly systems for solar parks.

As a leading steel and aluminum service center, thyssenkrupp Materials Processing Europe serves processors from the automotive, electrical, construction and solar industries at eleven locations in six countries. With its many years of expertise in procurement, consulting and prefabrication, the processing specialist provides its diverse customer base with customized services and digital solutions for flat steel and non-ferrous metals throughout Europe.

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• thyssenkrupp Aerospace handles material supply from sourcing to processing to warehousing and logistics

• Control tower will manage Bombardier’s supply chain ecosystem and enhance transparency and resilience

• Investment in new technologies and tools

 thyssenkrupp Aerospace has signed a new seven-year agreement to provide raw material management services to Bombardier, a global leader in aviation, focused on designing, manufacturing, and servicing the world’s most exceptional jets for business and defense customers. The agreement is an extension of a 15-year-long partnership between the two companies. thyssenkrupp Aerospace manages raw material deliveries to Bombardier’s supply chain by handling material flows from demand forecasting, sourcing, and processing to warehousing and logistics through a dedicated and customized control tower.

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Partnership thyssenkrupp Aerospace and Bombardier (c) thyssenkrupp Aerospace

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A control tower for enhanced visibility

The use of a control tower ensures a seamless supply of materials to customers and their subcontractors. Digital tools oversee planning, execution, and reporting across the customer sites serviced by thyssenkrupp Aerospace. The control tower closely monitors all operational activities as well as forecasting and order inputs. In this way, it brings transparency to customer supply chains, the ability to act immediately in the case of unforeseen events, and continuous improvement measures. 

thyssenkrupp Aerospace CEO Patrick Marous explains: “It is our mission to make the aerospace supply chain more resilient and support our customers in the best possible way. This is why we are delighted that Bombardier continues to trust us with their raw materials management. The use of a global control tower will enhance visibility for Bombardier and help to make its supply chain more flexible. It is a great example of our strategic approach that goes beyond materials distribution to offering ‘Materials as a Service’.” 

As part of its \”Materials as a Service\” strategy, thyssenkrupp Materials Services, the parent company of thyssenkrupp Aerospace, is continuously expanding its service portfolio. Digital solutions in the area of supply chain management play an essential role for the biggest mill-independent materials distributor and service provider in the Western world.   

Ilse Henne, Chief Transformation Officer of thyssenkrupp Materials Services, says: \”We are observing a great deal of dynamism in the market environment with a high degree of complexity – this naturally also moves our customers. We see it as our role to manage this complexity with intelligent solutions so that our customers can concentrate on their core business.\” 

New investment for increased efficiency

The new contract with Bombardier will focus on reducing waste, optimizing resources, and increasing process efficiency. thyssenkrupp Aerospace is taking measures to increase process efficiency and assist Bombardier in its growth strategy. To that end, the company has recently acquired digitally controlled vertical storage units for its warehouses in Canada – streamlining Bombardier’s supply chain with just-in-time or just-in-sequence materials delivery. 

Bombardier’s growth strategy includes a focus on leveraging the full potential of its talented employees to support its ever-increasing customer base. The company is growing its skilled and diverse workforce and places a great importance on finding top talent to continue thriving as a world-leading manufacturer of business jets. 

thyssenkrupp Aerospace is a leading global company that delivers supply chain solutions for the aerospace industry. The company’s network spans more than 40 sites in over 20 countries and its customers include the world’s biggest aerospace manufacturers and their suppliers. thyssenkrupp Aerospace offers supply chain management as well as a wide range of supply chain and manufacturing services. These include procurement of raw materials, warehousing, precision processing, third-party logistics, and just-in-time delivery.

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Whether it’s fragile supply chains, cost pressures, or increasing sustainability requirements, the logistics industry is facing increasingly complex challenges. To meet them, companies need to make their supply chains more flexible and resilient. To mark \”Supply Chain Day\” on April 20, Ilse Henne, Chief Transformation Officer at thyssenkrupp Materials Services, looks at current developments and trends in the industry: 

\”Global supply chains are increasingly developing into complex supply networks. Their resilience is essential in the current global market environment – but this requires more transparency and collaboration between all players. The digitalization of industry offers enormous potential: for example, end-to-end data collaboration can break down existing silos in supply chain management and increase the resilience, supply security and profitability of companies. For customers in particular, this creates real added value. 

Digitalization also helps companies avoid supply bottlenecks and optimize (intra-)logistics and utilization of existing machinery. In addition, comprehensive real-time data exchange with the other participants in a supply chain can reduce dynamic processes such as the bullwhip effect and thus secure competitive advantages. 

Companies should therefore focus on their supply chains and invest, for example, in software solutions that create transparency in their supply chain. The partnership-based (data) exchange of all parties involved is also becoming increasingly important in order to be sufficiently informed and to pull together. This is the only way companies can meet the challenges facing logistics and the global economy today.\” 

As the largest mill-independent materials distribution and service provider in the Western world, thyssenkrupp Materials Services is already working on solutions for end-to-end data collaboration across the entire supply chain as part of its strategic development \”Materials as a Service\”. The aim: to make supply chains more digital and resilient, improve forecasts, avoid supply bottlenecks and ultimately strengthen global supply security.

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