{"id":2917,"date":"2010-07-30T18:36:00","date_gmt":"2010-07-30T18:36:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2010\/07\/30\/boeing-worried-over-supply-chain\/"},"modified":"2023-06-20T04:28:50","modified_gmt":"2023-06-20T08:28:50","slug":"boeing-worried-over-supply-chain","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/boeing-worried-over-supply-chain\/","title":{"rendered":"Boeing worried over Supply Chain"},"content":{"rendered":"<p>Wednesday, I reviewed a white paper on the topic of supplier risk management. Well, I ran across an article this week that demonstrates the timeliness of this issue.<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>Boeing, the second-biggest aircraft manufacturer, made a statement on Wednesday that it would not be able to increase production rates because they felt their suppliers would not be able to fulfill the increased demand. As it stands now, Boeing produces about 31-32 of its 737-model aircraft each month and plans to increase production to 34 or more a month. They are also planning to increase the production of larger models, such as the 777 and 747, over the next two years.<\/p>\n<p>Now, Boeing is not the only aircraft manufacturer looking to increase production; their main rival, Airbus, and several other competitors will be ramping up as well. Boeing fears that this collective increased demand will stretch suppliers too thin.<\/p>\n<p>Recognizing the risk that this poses to their operations, Boeing is \u201cworking very methodically through different scenarios,\u201d noting which suppliers may need to invest more in plant and\/or equipment, those that may need to renegotiate standing contracts, and those that may need additional training.<\/p>\n<p>I would have to imagine that Boeing is establishing a risk management plan to deal with anticipated supplier failures. Hopefully, they are not being too short-sighted and only monitoring their suppliers, but their supplier\u2019s suppliers as well. It will be interesting to continue to follow this Boeing story over the next couple of years and see if they successfully managed their supplier risk.<\/p>\n<p>To your career,<\/p>\n<p>Megan Tyrseck, SPSM<br \/>\nSenior Marketing &amp; External Relations Coordinator<br \/>\nNext Level Purchasing, Inc.<\/p>\n<p>Struggling To Have A Rewarding Purchasing Career?<br \/>\nEarn Your SPSM Certification Online<br \/>\nAt <a href=\"https:\/\/www.certitrek.com\/nlpa\/\">https:\/\/www.certitrek.com\/nlpa\/<\/a><\/p>\n<p><strong>Recommended Reading<\/strong><\/p>\n<p><a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/what-can-procurement-learn-from-marketing\/\" aria-label=\"\u201cWhat can Procurement learn from Marketing?\u201d (Edit)\">What can Procurement learn from Marketing?<\/a><br \/>\n<a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/what-salespeople-think-of-procurement-and-vice-versa-part-ii\/\" aria-label=\"\u201cWhat Salespeople Think of Procurement (And Vice-Versa), Part II\u201d (Edit)\">What Salespeople Think of Procurement (And Vice-Versa), Part II<\/a><br \/>\n<a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/supply-base-overconsolidation-is-it-for-the-laziest-procurement-professionals\/\" aria-label=\"\u201cSupply Base Overconsolidation:  Is It For The Laziest Procurement Professionals?\u201d (Edit)\">Supply Base Overconsolidation: Is It For The Laziest Procurement Professionals?<\/a><br \/>\n<a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/sourcing-from-china-today-is-no-childs-play\/\" aria-label=\"\u201cSourcing From China Today Is No Child's Play\u201d (Edit)\">Sourcing From China Today Is No Child&#8217;s Play<\/a><br \/>\n<a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/is-bid-rigging-alive-well\/\" aria-label=\"\u201cIs Bid Rigging Alive &amp; Well?\u201d (Edit)\">Is Bid Rigging Alive &amp; Well?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wednesday, I reviewed a white paper on the topic of [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - 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