Boeing Australia Limited Case Analysis
Boeing Australia Limited: Assessing the Merits of Implementing a Sophisticated e-Procurement System
XUELAI (ANDY) HU
Contents
Contents 1
Executive Summary 2
Issue Identification 2
Environmental and Root Cause Analysis 3
Environmental and Root Cause Analysis 3
Rationalisation and Management of Suppliers 4
Introducing Credit-card Purchasing 4
Formation of the Materials Management Process Council 4
Alternatives or Options 4
Recommendations and Implementation 6
Recommendations 6
Implementations 6
Monitor and Control 7
Reference 8
Executive Summary
Boeing Australia limited (BAL) is the global extension firm of the Boeing Company in US, with operations in 12 locations around Australia and major business in areas of space and communications, site management, upgrade and maintenance of military aircrafts, and commercial aviation services. Their biggest customer is Australian Defence Force (ADF) who is responsible for the national security of Australia. Through implementing the company`s short term improvement strategies, which include rationalization of suppliers, introducing the new credit card payment method and establishing the Materials Management Process Council, BAL now has to decide whether to introduce the e-procurement system in order to increase productivity and reduce unnecessary costs.
After identifying the issues and analyzing their root causes, alternatives, recommendations and implementations are provided in this case. I recommend BAL to invest in a new cost effective e-Procurement system that will be capable to work with their legacy system in order to achieve high productivity and reduce processing time. This could provide mutual benefits to their suppliers within budget constraints in the long term run. By following the recommendations and implementations that have been provided, all existing issues can be resolved.
Issue Identification
The main issue for Boeing Australia Limited (BAL) is to come up with an appropriate system that
XUELAI (ANDY) HU
Contents
Contents 1
Executive Summary 2
Issue Identification 2
Environmental and Root Cause Analysis 3
Environmental and Root Cause Analysis 3
Rationalisation and Management of Suppliers 4
Introducing Credit-card Purchasing 4
Formation of the Materials Management Process Council 4
Alternatives or Options 4
Recommendations and Implementation 6
Recommendations 6
Implementations 6
Monitor and Control 7
Reference 8
Executive Summary
Boeing Australia limited (BAL) is the global extension firm of the Boeing Company in US, with operations in 12 locations around Australia and major business in areas of space and communications, site management, upgrade and maintenance of military aircrafts, and commercial aviation services. Their biggest customer is Australian Defence Force (ADF) who is responsible for the national security of Australia. Through implementing the company`s short term improvement strategies, which include rationalization of suppliers, introducing the new credit card payment method and establishing the Materials Management Process Council, BAL now has to decide whether to introduce the e-procurement system in order to increase productivity and reduce unnecessary costs.
After identifying the issues and analyzing their root causes, alternatives, recommendations and implementations are provided in this case. I recommend BAL to invest in a new cost effective e-Procurement system that will be capable to work with their legacy system in order to achieve high productivity and reduce processing time. This could provide mutual benefits to their suppliers within budget constraints in the long term run. By following the recommendations and implementations that have been provided, all existing issues can be resolved.
Issue Identification
The main issue for Boeing Australia Limited (BAL) is to come up with an appropriate system that