BAL
Executive Summary
Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined, providing products and tailored services to airlines and U.S. and allied armed forces around the world. BAL’s capabilities include rotorcraft, electronic and defense systems, missiles, and satellites, launch systems and advanced information and communication systems. BAL’s reach extends to customers in more than 90 countries around the world, and they are a leading U.S. exporter in terms of sales. With corporate offices in Chicago, Boeing employs more than 159,300 people in 49 American states and 70 countries. Their enterprise also leverages on talents of hundreds of thousands more people working for Boeing suppliers worldwide.
In early 1999, BAL recruited a new national procurement manager, Russell Menere. His immediate task was to look for gains in productivity by improving procurement processes, either through cost savings or by reduced processing time. Russell needed to decide what BAL’s next step should be, should BAL invest in new system that would simplify procurement processes; should BAL sit on the fence? The main issue would be how to implement and obtain cost effective e-procurement system that is integrated with current legacy systems.
It is recommended that now is not the time to sit on the fence and wait, as this would run the risk of strategic disadvantages. The BAL should adopt and implement cost effective e-procurement system that can be interfaced with legacy in formation system, as the IT infrastructure of BAL is their core strength. This will help to improve business process and operations, cost saving by reducing processing time, rationalization of a large number of BAL suppliers and maintaining relationship with key suppliers.
Issues Identification
Low productivity and high processing time in procurement processes is main issue in the BAL business process. The current issue facing Boeing
Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined, providing products and tailored services to airlines and U.S. and allied armed forces around the world. BAL’s capabilities include rotorcraft, electronic and defense systems, missiles, and satellites, launch systems and advanced information and communication systems. BAL’s reach extends to customers in more than 90 countries around the world, and they are a leading U.S. exporter in terms of sales. With corporate offices in Chicago, Boeing employs more than 159,300 people in 49 American states and 70 countries. Their enterprise also leverages on talents of hundreds of thousands more people working for Boeing suppliers worldwide.
In early 1999, BAL recruited a new national procurement manager, Russell Menere. His immediate task was to look for gains in productivity by improving procurement processes, either through cost savings or by reduced processing time. Russell needed to decide what BAL’s next step should be, should BAL invest in new system that would simplify procurement processes; should BAL sit on the fence? The main issue would be how to implement and obtain cost effective e-procurement system that is integrated with current legacy systems.
It is recommended that now is not the time to sit on the fence and wait, as this would run the risk of strategic disadvantages. The BAL should adopt and implement cost effective e-procurement system that can be interfaced with legacy in formation system, as the IT infrastructure of BAL is their core strength. This will help to improve business process and operations, cost saving by reducing processing time, rationalization of a large number of BAL suppliers and maintaining relationship with key suppliers.
Issues Identification
Low productivity and high processing time in procurement processes is main issue in the BAL business process. The current issue facing Boeing