Search this website
Powered by Squarespace

 

Social Media Links
RSS Feed

Entries in supplier failure (3)

Thursday
16Jul2009

Lessons learned from Boeing’s Dreamliner Sourcing Problems

 

I read a recent from Adrian Gonzalez about not only the lessons learned from the Boeing 787 Dreamliner program, but discusses some of the supply chain capacity issues that we may experience.

Starting in 2007, Boeing experienced a shortage of nuts and bolts used to assemble the Dreamliner and the root cause of the problem was the reduction of fastener capacity in the aerospace industry following September 11, 2001.  The lesson learned is that it is easier to cut capacity and takes time to add it back, an implication for our current situation since as the economy recovers, manufacturers may face a similar issue.

Another interesting learning point relates to Boeing’s recent acquisition of Vought’s Aircraft Industries'South Carolina facility where Vought builds the rear fuselage and tail-cone sections of the Boeing’s 787 Dreamliner airplane. Did Boeing outsource too much for the Dreamliner program and what is the right balance between outsourcing and maintaining operations in house? This is a change in direction and Boeing must desire more direct control over critical sourcing.

http://logisticsviewpoints.com/2009/07/13/boeings-787-dreamliner-supply-chain-lessons-and-questions/

 

Thursday
18Jun2009

Reassessing risk in global logistics

Logistics Management has an article covering how supply chain leaders should rethink their companies'  risks and potentially rebalance the trade-offs between cost optimization and effective risk management.  

The article discusses the three emerging areas of significant supply chain risk which are supplier stability, product quality and demand forecasting.  They suggest the following four step process to mitigate your supply chain risk.

http://www.logisticsmgmt.com/article/CA6663599.html

Monday
01Jun2009

AMR Research Report Cites Supply Chain Failure Concerns

A new AMR Research report suggests companies are moving away from sourcing operations in China since they are finding that the risks are not worth the rewards.  Top concerns include Intellectual Property(IP) infringement, product quality riskiness and regulatory compliance. Last year's study showed the primary concerns were related to transportation costs and volatile commodity prices while supplier failure was not on most firm's radar.   There has been a dramatic change since this year's study shows that given the global economic crisis and turmoil, supplier failure is now the most pressing issue. 

A final interesting observation from the study is that companies are increasingly using simulation and modeling tools as a means for reducing risk.  Simulation tools can perform what if analysis so companies can evaluate alternative ship methods, routes and develop contingency plans to mitigate the risk of a supply chain disruption.

http://www.amrresearch.com/Content/View.aspx?compURI=tcm:7-43399