Boeing to keep suppliers on their toes
Global - Boeing Co. has decided to adopt the strategy of putting its suppliers to a stress-test by visiting vendors more frequently and conducting evaluations to identify tension in the supply chain.
In hopes of achieving an increase of about 60% in the next three years, the company has become more proactive, having bolstered its ranks of supplier examiners with about 200 engineers and other supply-chain specialists in the past 18 months.
The Chicago-based company took up this strategy in order to manage its current staggering backlog of 3500 commercial jets valued at US$270 billion (S$348.8 billion), and to speed up production of its commercial jets without incurring further costly backlogs and delays, WSJ reported.
Under its more vigilant approach, Boeing is communicating more often with suppliers and sharing more information about its own forecasts and productions, according to executives at the company and several of its suppliers. They have also increased its scrutiny of how its suppliers are evaluating their own vendors.
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