Evaluate 4.1 Short Paper- Supply Chain Management
1. What aspects of Boeing's supplier relations program specifically address reduce inventories; maintain quality, regulatory compliance, and competiveness? Boeing’s supplier relations program is quite expansive and addresses all notable concerns of big a business. In order to reduce inventories by way of its supply chain relations program, Boeing has set in place guidelines and/or procurement policies which act a framework and are applied in order to help govern all necessary purchases. One of the organization’s overarching procurement tenets, which effectively aids in the reduction of unnecessary inventories, is to purchase “materials of the right quality, in the right quantity, at the right time, at the right price and from the right sources” (Boeing Corporation, 2010). In addition to inventory controls set in place by prudent supply chain management, Boeing is also known for their incorporation of leand principles and techniques which help to maximize efficiency while improving quality and overall safety (Boeing Corporation, 2004).
In order to ensure and maintain top quality from Boeing’s suppliers, the organization actually developed an entire code which it enforces under the acronym BQMS, or Boeing Quality Management System Requirements for Supplier (Boeing Corporation, 2010). The document outlines in specific detail the expectations Boeing has of all suppliers and in fact denotes the contents as being applicable by contractual agreement between themselves and suppliers a part of their supply chain. As a means of providing additional information, insight, and clarification as to their quality requirements, Boeing posts addendums to the BQMS on occasion and provides suppliers with several FAQ forum links on their site.
As the Aerospace and Defense industry is highly regulated both domestically and globally, it is important that suppliers comply with any and all...