Boeing
Boeing
Boeing is one of the leading aerospace manufacturers, which William Boeing established in July 1916. This company creates, manufactures, and sells aircraft, rotorcrafts, rockets, and satellites to several nations worldwide. Since its inception, it has risen to become one of the major exporters in the U.S. Dollar terms in the U.S. and the third-largest defense equipment provider in terms of revenue by 2020. This growth can be attributed to its effective supply chain, where the organization focuses on its core activities to help meet its market demands. Due to the fact that an airplane has more than three million parts, the organization’s supply chain is vast and global. One of the organizations with an efficient supply that has contributed to its competitive advantage is Boeing; therefore, it is important to explore its supply chain area and its importance to the organization.
Purchasing and Supplier Relationship
The purchasing and supply chain relationship is important to Boeing for several reasons. One of the benefits is that it has resulted in a reduction in costs where it has eliminated the need to negotiate and seek fresh deals from suppliers of its raw materials. The second importance is that it has improved the organization’s efficiency by improving communication. There are fewer order issues related to the acquisition of raw materials, and in cases where issues might arise, conflict resolution has become simpler (He et al., 2014). The third importance is that it has helped ensure continuously improved operations due to feedback from suppliers.
Customer Relationship Management
The relationship of this organization with its customers has helped ensure that it retains its customers and ensures their satisfaction. It has also made it possible for the organization to identify and develop strategies to address issues affecting customers before they become problems. Boeing’s customer relationship management has also helped the organization to increase its profits by allowing it to deal with different segments cost-effectively.
Inventory Management
The organization’s inventory management has helped increase Boeing’s productivity. The organization has increased its production rates because there are a few mistakes that they have to deal with, enabling it to focus on making high-quality products (Lamba & Elahi, 2012). Inventory management has also made it possible for the organization to reduce its business costs by ensuring that it only acquires the products that are on demand. Lastly, inventory management has helped improve the organization’s supply chain.
Quality Management
Quality management has benefited the organization by ensuring that there is operational consistency. This is because it has made it possible for it to achieve stability in its objects. It has ensured the organization’s efforts are aligned toward the production of high-quality products. It has also helped ensure continuous improvement, which has helped it gain a competitive advantage over its competitors.
Logistics Functions
Warehousing in logistics has helped ensure that the products of Boeing are easily distributed, raw materials are accessible, and improved the management of inventories. It has also increased the organization’s efficiency and made it possible to keep a better record of its products and the available quantities (Mocenco, 2014). On the other hand, transportation has helped reduce the organization’s freight expenses, improve its service to customers, and make it possible to track deliveries in real-time.
References
He, S., Hipel, K. W., & Kilgour, D. M. (2014, October). A hierarchical approach to study supply chain conflicts between Airbus and Boeing. In 2014 IEEE International Conference on Systems, Man, and Cybernetics (SMC) (pp. 1559-1564). IEEE.
Lamba, N., & Elahi, E. (2012). When supply chain strategy does not match supply chain capabilities: Lessons that can be learnt from the supply chain of Boeing 787. In Cases on Supply Chain and Distribution Management: Issues and Principles (pp. 159-177). IGI Global.
Mocenco, D. (2015). Supply chain features of the aerospace industry. particular case airbus and boeing. Scientific Bulletin-Economic Sciences, 14(2), 17-25.
