Eureka Case 30 min Undergrad

Red de Tier-Uno

You are Eider Castiñeira-Pomares, 46, VP Supplier Strategy at Aerogalia, a Vigo-based aerospace tier-1 manufacturer of composite primary structures for narrow-body programs. Your CEO wants a Toyota-style supplier co-development circle. You have 34 critical suppliers; you can bring at most 8 into the inner ring.

The situation

Aerogalia makes composite wing skins, control surfaces, and section-46 fuselage panels for two large narrow-body OEMs (one European, one US). €640M revenue, 2,100 employees, 8 plants across Galicia and Asturias. CEO Aitor Madariaga-Lekuona's strategy commits to "co-developed lightweighting" — moving from supplier-to-Aerogalia-to-OEM linear handoff to a co-developed engineering motion that gives the OEMs an extra 6–11% weight reduction on the next program revision. The Boeing 787 partner network and the Toyota keiretsu sit on his bookshelf, dog-eared.

Of Aerogalia's 134 active suppliers, 34 are "critical" (single-source, long-lead, or proprietary chemistry). You have a €18M three-year budget to install a co-development circle around the 8 you choose. Each "in-ring" supplier gets: a resident Aerogalia engineer at their plant, joint-IP terms on co-developed components, payment-term extension to 90 days, and a five-year volume commitment. The other 26 stay on standard contracts. The wrong 8 is the failure mode you have to design against.

Your job in this case: review the 14 highest-stakes suppliers on the network map, model trade-offs between technical contribution / relationship depth / counterparty risk, and commit to a network-design philosophy. The CEO is presenting the supplier strategy to the OEM customer's procurement leadership in 16 days.

The decision

What network philosophy do you bring to Aitor?

  • A · Build on existing trust: the 8 strongest relationships
  • B · Hybrid: 5 contribution-led + 3 trust-led, with a buildable middle
  • C · Aggressive contribution: the 8 highest technical-contribution suppliers, regardless of relationship

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