Raytheon Streamlines and Automates its

Material Requirement Planning Processes

Arya Vidya Utama
Fredric M.H. Marpaung
Irin Triastuti
M. Nicky Has

Raytheon 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.
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

Raytheons Problem
As one of the worlds 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.
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 inventory-related expenditures and
handling via MRP

Raytheons Problem
Like

most

large

A&D

companies,

Raytheons 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.

Raytheons Problem
Raytheon recognized that the substantial amount of
human intervention in the MRP process did more than
just consume valuable resources it harbored
unnecessary risks, such as:
Miscommunications between buyers and suppliers.
Lost or misplaced documentation when printing, faxing,
or emailing.
Unintentional introduction of errors as buyers updated
documents by hand in the MRP systems and suppliers
did likewise on their systems.

Solutions
Exostars Supply Chain Platform (SCP), powered by
E2open software, circumvented those concerns.
Raytheon embraced a tight integration with SCP
using ironclad security. SCPs flexible, serviceoriented architecture and extensive library of
supported standards and protocols meant the
solution could be integrated seamlessly and
expeditiously into the operating environments of
Raytheon and its supplier partners.

Solutions
SCP controls the transactions associated
with the planning, scheduling, and
delivery of goods for IDS buyers and their
suppliers. Specifically, SCP enables:
Automated Processes
Alerts & Notifications
Supplier Performance Traceability

Thank You for Your Attention