BOEING AUSTRAILIA (BAL)

Boeing Australia Limited (BAL)
Assessing the Merits of Implementing a
Sophisticated e-Procurement System

Boeing Australia Limited (BAL)
Table of Contents
Page
Executive Summary
Part 1

Executive Summary

2

Part 2

Immediate Issue

3

Part 3

Systemic Issues

3

Issue Identification

Environmental & Root Cause Analysis
Part 4

Qualitative Analysis

4

Part 5

Qualitative Analysis

5

Alternatives and/or Options
Part 6

Alternatives

6

Recommendations

7

Recommendations Implementation Plan

8

Part 9

Monitor and Control

9

Part 10

Conclusion & Management Plan

Recommendations
Part 7
Implementation
Part 8
Monitor & Control

1

10

Boeing Australia Limited (BAL)
Part 1 – Executive Summary
I am Russell Menere, the National Procurement Manager for Boeing Australia Limited (BAL)., my decision is to recommend that BAL pursue a cost effective e-procurement system that will interface with the legacy information technology systems that are already in place. This tool should simplify the procurement processes across the different divisions of BAL and support the complex interfaces BAL’s suppliers and customers require.

Based on a 6 month to a year setup and implementation process BAL at a cost of AD $995,000.
BAL should be able to reduce costs, decrease lead times, have less duplication and errors as well as be able to co-ordinate with suppliers and customers throughout the procurement procedures. BAL should also work on the continued reduction of suppliers as well as

maintaining and improving relationships with Key suppliers.

A new system would also allow them to look into new ways to purchase products from their suppliers to get the best prices available. Like reverse auctions or group buying with the Boeing
Parent Company.

2

Boeing Australia Limited (BAL)
Issue Identification
Part 2: Immediate Issue
The immediate issue facing Boeing Australia Limited (BAL)