Boeing's Supply Chain System

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Introduction Boeing follows the goal of “to find and apply the best, most innovative technologies and processes in the world to improve our products and services” (Boeing Frontiers, 2005). By utilizing the contents of this quote it is apparent at what Boeing is best at accomplishing internally which is their innovations through R&D and their supply chain management system. These assets improve their products and services enabling Boeing to become the aerospace conglomerate of today. By analyzing these processes and the products they create will give a better look into the value, rarity, imitability, and organization that each holds along with demonstrating their strengths, weaknesses, and other organizational situations. Value Boeing…show more content…
In turn, this has lead Boeing to not be shy about publically saying that they gain value from being a lean company and they mean it. Throughout the years Boeing has developed a lasting relationship with a massive amount of parts suppliers, but they are not afraid to cut ties with the current supplier for one that has a more cost effective goal in mind. On the 777X the company discontinued service with long time partner Messier-Dowty which manufactured all of the previous landing gear assemblies for the 777 and gave the contract to Heroux-Devtek (HDI) for a serious trimming cost of roughly $30 million per year (Supply Chain Push, 2012). The airline manufacturer has also generated profit gaining value from being an industry leader in innovation. As depicted in the rarity section Boeing has upcoming projects that prove fruitful in peaking customer interest. Currently the main focus of Boeings innovations have been to improve reliability, faster flying jetliners, and farther flying jets. They have been able to combine all of these ideas in the 787 Dreamliner which is has increased seat capacity from 125 to over 400, and decreased fuel cost of $11.53 per nautical mile when compared with the 777-300ER depicted in Figure 3. With future orders in place of over $440 billion with the majority of major airlines this new model is sure to set the industry bar
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