Boeing
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 aircraft and equipment. As BAL grew, it had developed various systems to support the procurement operations at four key divisions and 12 sites that made up the organization. However there is no interface of these systems and they operated autonomously, resulting in a lot of administrative redundancies, low productivity, and high processing time for the procurement processes.
The dilemma exists in whether to continue to sit on the fence and seek a long-term improvement tools for integration with the current systems, or to invest in a new system that would simplify the procurement processes across the different divisions and support complex interfaces with suppliers?
As Russell Menere, National Procurement Manager, I recommend to pursue a cost effective e-Procurement system, which would integrate with the various legacy information technology systems currently in place. The e-Procurement tool should simplify the processes across the different divisions and support the multiple suppliers.
Issue Identification:
Immediate Issue:
The immediate issue BAL facing is the necessity to find an e-Procurement system that would link the BAL, the Australian Defense Force (ADF) and the major suppliers. Following are the requirements to
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 aircraft and equipment. As BAL grew, it had developed various systems to support the procurement operations at four key divisions and 12 sites that made up the organization. However there is no interface of these systems and they operated autonomously, resulting in a lot of administrative redundancies, low productivity, and high processing time for the procurement processes.
The dilemma exists in whether to continue to sit on the fence and seek a long-term improvement tools for integration with the current systems, or to invest in a new system that would simplify the procurement processes across the different divisions and support complex interfaces with suppliers?
As Russell Menere, National Procurement Manager, I recommend to pursue a cost effective e-Procurement system, which would integrate with the various legacy information technology systems currently in place. The e-Procurement tool should simplify the processes across the different divisions and support the multiple suppliers.
Issue Identification:
Immediate Issue:
The immediate issue BAL facing is the necessity to find an e-Procurement system that would link the BAL, the Australian Defense Force (ADF) and the major suppliers. Following are the requirements to
References: 1. Boeing Australia Limited: Assessing the Merits of Implementing a Sophisticated e-Procurement System Case. #HKU271. Centre for Asian Business Cases.