Discussion: Boeing's Strategic Initiative - Discussion Group 5

From SCMA-5310-002-15087-2021FS-Supply Chain Strategies

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Boeing's Strategic Initiative: Raw Material Supply Chain Risk Mitigation Download Boeing's Strategic Initiative: Raw Material Supply Chain Risk Mitigationby Sathe (2019) details The Boeing Company's raw material supply chain risks and explores appropriate strategies to mitigate them. Aluminum and titanium accounted for about 75% of the weight of a typical large commercial aircraft, so Boeing and its suppliers bought hundreds of millions of pounds of these metals every year in order to manufacture structural parts. But Boeing's forecasting methodologies for aluminum and titanium consistently underestimated true demand, which cost the company significant time and money. The case describes an ineffective scrap recovery process which failed to recover millions of dollars of precious scrap material, as well as a disproportionately low allocation of risk mitigation resources to raw material mills.

For your next discussion, read the HBR Case Study Boeing's Strategic Initiative: Raw Material Supply Chain Risk Mitigation Download Boeing's Strategic Initiative: Raw Material Supply Chain Risk Mitigationby Sathe (2019). Then, answer one of the following questions that has not been addressed by a group mate or has been answered by only one other group mate.

1. How could the company better forecast its raw material needs?
2. How could it rework its PRA process to better suit raw material mills?
3. How could it better limit errors in the ordering, processing and shipment steps of the supply chain?
4. How could it better account for late raw material deliveries when they did occur?
5. How could Boeing improve its scrap recovery process to boost its bottom line?

Finally, thoughtfully and thoroughly reply to at least two of your classmates' posts by discussing whether you agree or disagree with their response and why