Introduction The Boeing Company is a leader in aircraft manufacturing. According to thestreet.com “Of its $95 billion in 2016 revenue, Boeing Commercial Aircraft accounted for $65 billion while Boeing Defense Space & Security accounted for $29.5 billion. Demand for air travel is growing, while [President] Trump has said he wants to spend more on defense.” (Reed, para. 6) As of 2011, procurement within the company has become decentralized and the competitive nature of the industry demands that savings are captured at every available avenue. The foremost priority in this effort to capture savings involves the consolidation of Maintenance, Repair & Operations (MRO) company-wide. This is no small task as several different divisions within the company have established their own procurement procedures and policies. Relationships have been forged, in some cases, over many years and those relationships have helped improve quality and driven savings on a different scale. The purpose of this study will be to create an expansion of the MRO category at the headquarters level that will drive cost savings and establish quality standards that are uniform across the enterprise. …show more content…
This phase will be referred to as Category Management. Supplier Relationship Management (SRM) will be accomplished through stratifying the supply base, tracking Supplier Performance Metrics (through quarterly business reviews with service and parts providers), and developing supplier performance improvement plans. Governance will be improved by measuring compliance through contract rather than contract spend, reducing leakage through a purchasing re-direct process, and developing a robust communication & business partner engagement to improve awareness. Finally, Category Management processes which will include risk and mitigation plans, a dashboard of category supplier performance and governance, and demand management and SKU