Supply Chain Managment Essay

832 Words4 Pages
Evaluate 4.1: Short Paper Evaluate 4.1 Short Paper- Supply Chain Management 1. What aspects of Boeing's supplier relations program specifically address reduce inventories; maintain quality, regulatory compliance, and competiveness? Boeing’s supplier relations program is quite expansive and addresses all notable concerns of big a business. In order to reduce inventories by way of its supply chain relations program, Boeing has set in place guidelines and/or procurement policies which act a framework and are applied in order to help govern all necessary purchases. One of the organization’s overarching procurement tenets, which effectively aids in the reduction of unnecessary inventories, is to purchase “materials of the right…show more content…
Proper and prudent supply chain management can lead to long term sustained success while lacks supplier selection and relations can lead to a wholly dysfunctional business. In order to perform well against competitors, especially in the large commercial aircraft space which pins Boeing and Airbus against one another in a neck to neck race for dominance, supplier selection must be done with vigilance and all the due diligence. Boeing’s process is one that “emphasizes the importance of competitive bidding as a good business practice”; in application the organization considers, “ability, capacity, integrity, financial status, geographical locations, performance, reliability, quality of product, delivery and overall customer-supplier relations in evaluating a potential supplier before and during a purchase contract” (Boeing Corporation, 2010). 2. How do planning and scheduling, ordering, and logistics come into play when running with minimal amounts of inventory? In order to run with minimal amounts of inventory, Boeing must take advantage of any and all technologies that allow for increased efficiency especially with regard to scheduling, ordering, and logistics. Boeing’s procurement process involves five distinct steps: Receive requirement from customer, develop bid list,
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