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Boeing Case Competition
Transcript of Boeing Case Competition
Improved information exchange
Lower transaction cost
Economies of scale
Limited innovation and market opportunities
Costly consolidated procurement processes
Fewer suppliers, decreased flexibility
Difficulty in identifying risks and markups
2013 Boeing Case Competition
Central Washington University
Rajwant Randeep Kaur
Variety of specialized suppliers
Improvement of global economy
Increased sales throughout numerous markets
Suppliers have competitive environment for further innovation
Less control due to numerous suppliers
Decreased knowledge of inventory levels
Higher complexity of transaction costs
Strengthening the Disaggregated Supply Chain Strategy
Target Analysis: 787 Dreamliner
Current 787 Supply Chain
Industry wide shortage of aerospace fasteners: only 3% of the total cost of the 787
500 suppliers for fasteners
Projected increases in raw material prices caused fastener orders to double
18 month delay in Airbus A380 delivery created slack capacity
Solution: FASTENER PROCUREMENT MODEL.
Increase Design Control
Creation of the Subcontracting Committee
Inventory Tracing Database
Expectations of Suppliers
Design & Subcontracting Issues