Boeing could alter supply chain

on Tuesday, January 15, 2013


 Supply chain management has long been an important issue for global companies, as it can be an critical factor in maintaining regular production schedules and cutting expenses. Proper supply chain optimization can also help a business looking to expand and experience growth worldwide.


While many large retailers take the steps necessary to streamline their procurement strategies and enhance client satisfaction, not every manufacturer takes advantage of such opportunities. However, jet and military aircraft giant Boeing is rumored to be gearing up to enhance its supply chain and take a cue from those companies with well-managed sourcing, production and shipping processes.


Rethinking sourcing

Many companies can find that by implementing strategic sourcing policies, they can vastly cut down on the amount of waste and inefficiencies throughout their supply chains. Firms that have contracts with a large amount of suppliers may find they are unable to gain a competitive edge, as their procurement expenses can be greater and they may lack the effectiveness seen in simplified supply chains.


Aviation Week reported Boeing is in the process of redesigning its procurement process to simplify contracts with its suppliers and develop more meaningful relationships with its suppliers, which could lower overall costs and lead to more competitive market pricing for clients.


Manufacturing processes still key

Despite the company's new commitment to sourcing and implementing cost cutting measures, it will need to maintain its focus on quality manufacturing, as it has experienced several safety issues in recent months that could be the result of inefficient or faulty production techniques.


The company's 787 Dreamliner passenger jet is currently undergoing federal review, after one of the planes caught fire while parked and another had issues with a fuel leak. The issues are currently being investigated, and the firm may have to make changes to its manufacturing or supply chain processes as a result.


"We don't know the cause of the fire, but it's a serious issue," said Scott Hamilton, aviation industry consultant, according to the Los Angeles Times. "Did the FAA miss something? Did Boeing have an oversight in the design process? Was there a problem in the supply chain? These are questions we don't have answers to."


As the parts and planes are produced across the globe, it may be difficult to track down the source of the problems; however, with proper supply chain oversight the company may be able to resolve the problems and manage to find an opportunity for greater cost savings.

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