Boeing Supply chain planning

878 Words4 Pages
In 2005 Boeing a giant in the Manufacturing of aircraft made the decision to change the way they run their supply chain. Boeing’s mission with this change was to prevent a repeat of mistakes made in 1997/1998; when during the aviation boom the giant flooded with orders in turn flooded its production lines, just to find they could not keep up with production. The result, Boeing manufactured too many planes and ended up selling them at cut prices resulting in a 4 billion dollar loss in revenue. In 2007 Boeing debuted their new 787-Dreamliner resulting in orders from 50 customers who purchased over 710 aircraft. Having the mistakes of the past fresh in mind Boeing in turn is changing the way they manage their supply chain. Boeing has modified their supply chain organization into a dynamic organization also called a modular or virtual organization. Bateman and Snell (2007) explain that this type of dynamic organization can be very successful offering, “flexibility, innovation, quick responses to threats and opportunities, and reduced costs and risks” (p.65). Strategically, Boeing has planned for their new supply chain model to give them a competitive advantage. Scott Strode, Vice President of Airplane Development at Boeing commented that they value their approach to involving partners as it, “has resulted in the development of a better airplane that can be produced more efficiently”(The Collaborative Supply Chain at Boeing). Mr. Strode also added that they have developed new technologies and tools that have enabled their collaboration model to be successful and provide value to future projects at Boeing. The impact of the new way of handling supply chain has proved beneficial to Boeing in several different ways with the new way of handling its supply chain. For one, more responsibility is now put on the shoulders of the suppliers to manufacturer and complete

More about Boeing Supply chain planning

Open Document