Case Study : Boeing Australia Limited

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Brief Summary Boeing Australia Limited (BAL) was formed in 1996 it was a global extension of the US firm, The Boeing Company. BAL developed many great capabilities in the areas of space communications, military aircraft and equipment, and such. However as it grew, BAL was faced with difficult decisions in finding ways to upgrade its procurement systems and processes to improve its operations. In 1999, BAL recruited Russell Menere as the new national procurement manager to help find ways that would improve procurement processes by one of two ways, cost savings or reducing processing times. Russell began doing a number of short term improvements here and there to get started, four key things he did were 1) rationalization a large number of…show more content…
The Australian Defense Force ADF is BAL’s main client that has its own legacy system in place that requires BAL to communicate via-in house data exchange. This adds pressure to BAL to improve and streamline processes that meets the ADF’s requirements because the current legacy system is not supportive enough. Need to improve on a strategic relationship with large numbers and key suppliers. Upgrading the procurement system would affect staff in that department directly, and would require an improved way of training since there is always a type of resistance when change shows up. Additionally, BAL has financial and budgetary constraints in investing on a new procurement system. Analysis The current process in place at BAL is not only complicated but is greatly time consuming. Seems there is constant duplication of work and at times the information is entered manually, slowing the process and leading to data input errors. Although BAL has taken many positive steps forward in continuing to improve some of the processes, more work is still required. Short term improvements have shown success in the process, mainly because BAL has put great emphasis on strategic sourcing. They have rationalized the supplier pool and have put their focus on building strong relationships with their suppliers, who in every case are the most important part and critical to any business, and in

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