Boeing more rigorous with procurement processes

Aircraft maker Boeing plans to boost output by 60 per cent in the next three years, with changes to procurement practices behind the target.

Changes to its outsourcing strategy for the 787 Dreamliner some years ago caused the plane to be more than three years late on delivery, costing the company $US2 billion to fix, in addition to many billions of dollars in lost revenue.

After many issues with sourcing and suppliers, Boeing is now taking a much more rigorous approach to supplier management. The new so called ‘stress tests’ look at exhaustive reviews of a supplier’s production materials, schedules, finances and even the tools it uses.

"Boeing has bolstered its ranks of supplier examiners with about 200 engineers and other supply-chain specialists in the past 18 months. Its teams visit vendors more frequently and conduct evaluations that can take days to complete," reported the Wall Street Journal.

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