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Boeing Case Competition

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by

Raymond Stiehl

on 31 October 2013

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Transcript of Boeing Case Competition

Aggregation
Improved information exchange

Lower transaction cost

Economies of scale



Pros:
Cons:
Environmental impacts

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
Chain Reactors
Rudy Sevoyan
Raymond Stiehl
Lindsey Roe
Vita Vasylchuk
Rajwant Randeep Kaur
Variety of specialized suppliers

Increased flexibility

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

Our Focus

Strengthening the Disaggregated Supply Chain Strategy

Target Analysis: 787 Dreamliner

Current 787 Supply Chain
Fasteners
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

Emerging Markets

Geo-Political Issues

Disaggregation
Pros:
Cons:
Questions?
Solution
Design & Subcontracting Issues
Full transcript