Boeing

1310 Words Nov 28th, 2014 6 Pages
Module 2: Procurement and Supply Chain Management
Session 11: E-Procurement
Written Cases Study 4: Boeing Australia Limited: Assessing the Merits of Implementing a Sophisticated e-Procurement System

Table of Contents
Executive Summary 3
Issue Identification 4
Environmental and Root Cause Analysis 6
Alternatives and Options 7
Recommendations 8
Implementation 8
Monitor and Control 9
Conclusion 10
References 10

Executive Summary
Boeing Australia Limited (BAL) is relatively new company and a global extension of the US firm, the Boeing Company. The BAL developed capabilities in the areas of space and communication, site management and the upgrade and maintenance of military
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Redundancy in processes for staff through using multiple system applications;
3. Slow manual processes for data management (manually entering data);
4. Deficient operations due to strict requirements to suppliers;
5. High cost of systems available on the market, which would provide systems integration solution;
6. Unknowns: not enough analysis done to guarantee that the new purchased system would meet all the functional requirements for the integration of system application already in place;
7. Staff resistance to change in case new procurement system will be implemented.
Key Assumptions:
Budget available for the setup, implementation, and training and interface and service of e-Procurement system and BAL legacy system.
BAL suppliers are flexible with changing their existing procurement processes.
E-Procurement system of choice is compliant with the ADF standards.

Alternatives and Options:
A1. BAL implements a sophisticated e-Procurement system, which integrates all parts of the current BAL legacy system already in place.
Pros: There are average expenses associated with purchasing e-Procurement solution. Future lower costs, and cost savings long-term. Integrates with current legacy system. Based on the integration of current systems, which staff is already using – no steep learning curve and less resistance to change.
Cons: Adding another system to the legacy system provides temporary problem fix

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