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Primary Discussion Response is due by Friday (11:59:59pm Central), Peer Responses are due by Tuesday (11:59:59pm Central).

The discussion assignment for this week includes a review of the Key Assignment Draft completed by one of your classmates, as well as a substantial response to at least 1 other student.

Primary Task Response: Your first task is to provide a summary of your Supply Chain Management Process Improvement Plan for your peers to review. Feedback from this assignment should be used to develop your final proposal. Attach your document to the main discussion post, and include any notes you feel are appropriate. The purpose of this assignment is to help improve the quality of the Key Assignment you will submit next week.

Respond to Another Student: Review at least 1 other student's Key Assignment summary and provide meaningful feedback. Refrain from general feedback, such as simply stating "good job." Your feedback to other students is most helpful if you not only point out weak areas but also offer suggestions for improvement. The best feedback takes a 3-stage approach to identify what was done well, weaknesses, and areas for improvement.

For assistance with your assignment, please use your text, Web resources, and all course materials.

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SUPPLY CHAIN MANAGEMENT 1 Supply Chain Management Marion Stephens Colorado Technical University SUPPLY CHAIN MANAGEMENT 2 Supply Chain Management Part 1 One of the globally recognized aerospace company is Boeing. William Boeing founded the firm on July 1916 and has its head office situated in Chicago, Illinois. The firm specializes in designing, making, marketing, and support services for satellites, defense missiles and aircrafts, jetliners (Boeing, 2018), and human space flight. “The firm operates in various segment including Boeing capital (BCC), global service and support (GS&S), network and space systems (N&SS), and commercial airplanes” (Boeing, 2018). The two biggest division for the company are Boeing defense, space, and security and Boeing commercial aircrafts. The “defense, space and security segment” (Boeing, 2018) relates to the study, establishment, manufacture, and advancement of unmanned and manned military weapons and aircrafts, including airborne reconnaissance and surveillance, such as airborne anti-submarine aircraft, battle management, and command and control, global mobility, such as tilt-rotor aircraft, rotorcraft, and tanker, and missile systems and combat and fighter aircraft. The commercial aircraft segment includes establishment, making, and marketing of crafts and support services to the airline globally. The GSS gives services to defense and commercial clients while the BC segment guarantees that clients have the funds they require to purchase and take delivery of the product and takes change of the overall financing exposure. Part 2 Supply chain management refers to the organization of the flow of services and goods, which entails relay and storage of unprocessed material, inventory and processed products from the firm to the clients. There are several flows in supply chain management, including SUPPLY CHAIN MANAGEMENT 3 information flow, financial flow, and service or product flow. Other management flows in supply chain include risk flow and product flow. Information Flow Information flow entails a big deal of manifold information including prevailing cash flow, product titles, commercial documents, delivery status, distributor and supplier information, client order information, inventory levels, description and pricing, product information, and bills of materials. Information flows in the supply chain for the company are bidirectional. In a bid to guarantee better and faster flow of information, the aerospace firm utilizes information technology, which greatly transforms its performance. Besides, revolution of information technology helps in bringing all the data produced in the air transport business to bear growing efficiency, security, and safety. The health management program utilizes information flow to enable airline to check airframe systems data across the whole fleet in real-time. The program also aid establish overtime developing problems and enable fixing. Financial Flow The economic and financial aspect of SCM is viewed in two aspects, including flow of funds and investment and cost perspective. Investment and costs add on as moving forward in the supply chain and optimizing total supply finance thus add directly to the general profitability. Optimizing the supply chain speculation adds to the optimization of return on the assets employed to the firm. Revenues flow from the ultimate client back through the suppliers, processors, and distributors of aerospace products and services. In 2017, the company recorded an operating financial flow of “13.3 billion dollars and bought back 46.1 million shares for 9.2 billion dollars” (Boeing, 2018). The company had a cash and marketable security of 10 billion dollars, which yield a strong security. “The firm’s backlog remains robust at 488 billion dollars, SUPPLY CHAIN MANAGEMENT 4 including a record 5,864 commercial aircrafts” (Boeing, 2018). The firm had a “revenue of 93.4 billion” (Boeing, 2018) dollars, which mirrored a record of 763 commercial deliveries. According to (Boeing, 2018), in 2018, the firm expects a financial flow increase to about 15 billion dollars, a revenue guidance of between 93 to 98 billion dollars reflecting between 810 and 815commercial deliveries. Product Flow Flow of products entail the relay of commodities from supplier to clients as well as dealing with client services, including support services. Boeing Company operates as manufacturers, distributors, and marketers of their aerospace products. The Boeing manufacturing network is more than process advancement, more than supplier partnership, and more than lean. The company has built quality into their production system and comprises of components that work in concert to guarantee an output of the top most standard cost-effective products within the least possible time. The principles for the company product network include managing supplier relationship, value streams, six sigma, lean manufacturing, and global manufacturing. These components are also imperative to Boeing’s competitiveness. How to Improve the 3 Flows The company can better their information flow by increasing coordination with its subcontractors, transport vendors, and suppliers. In a bid to better their financial flow, the company can advance their techniques in managing financial flows in supply chains to get greater opportunities and minimize challenges. To advance their product flow, the company can increase measure to ensure that there is no backward flow of materials linked to product return. SUPPLY CHAIN MANAGEMENT 5 Functions of Typical Supply Chain Christopher notes that in organizations, supply chains encompass various functions aimed at ensuring a smooth operation in a bid to attain the set enterprise objectives and goals (2016). The primary functions of supply chain as applied by enterprise include Purchasing: In supply chain, purchasing is the primary function of supply chain in an organization that involves the action of procuring resources and raw materials essential in the running of a company or directly used in the production of goods. In purchasing supply chain plays a role of coordinating suppliers to enhance the delivery of the procured items on time and meeting the required mark of quality. Logistics: This is another function of supply chain in organizations that involve that aspect distributing goods and service as well as raw materials from one point to another. As a result, logistics in supply chain entails service and goods delivery, that is, the transportation of finished goods and service to a storage or consumers as well as the raw material from the suppliers to the buyer. Operation/production: is another key function in organizational supply chain administration. This involves works such as shipping goods, inventory administration, planning and predicting demand as well as placing the purchasing orders for the required materials in the production process. Information workflow: This is another important function of supply chain in enterprises that involves the flow of diverse form of information from the company to the vendors as well as the customers. In this case, supply chain allow essential information to flow down and up the workflow chain. SUPPLY CHAIN MANAGEMENT 6 Coordinating processes: this is another function of supply chain that enhances the operation in an organization through effective planning, sourcing, producing and delivering necessary products and services upon demand. In coordinating processes, supply chain act as a factor promoting an increase in organizational profitability by enhancing the alignment of various corporate processes. Functions Used By Boeing Supply Chain Boeing supply chain administration has adopted most of the supply chain function integrated into the company's operations. The first supply chain function used in Boeing is purchasing utilized in the process of procuring materials used in the production of aircraft. For instance, parts of the Boeing planes are procured in different parts of the world, which a function of the company’s supply chain. Besides, logistic is another supply chain function used by Boeing, which involves the movement of material from one point to the other. For example, Boeing utilizes logistic in the transportation of various part of the planes world such as the wings for Mitsubishi Japan and center fuselage for Italy. Another key function of supply chain used by Boeing is the function of coordinating processes to enhance the effectiveness of the company operations. Coordination processes in Boeing supply chain involve effective planning for the production line, sourcing for materials and in the delivery of the finished planes to the client based on the demand of the planes. Lastly, the company utilizes the information workflow as another function of supply chain, which entails laying down of effective channels of information flow upward as well as downward to promote overall effectiveness of the company's management, operation, and logistics/distribution processes. SUPPLY CHAIN MANAGEMENT 7 How Boeing Company uses 3PLs Services Third-party logistics (3PLs) providers provide outsourced logistics services that entail anything, which encompasses management of one or more areas of fulfillment and procurement activities. Boeing Company utilizes the services of Third Party Logistics, such as Ryder System Inc. and New Breed Logistics in support of its supply chain. Firstly, Boeing uses New Breed Logistics to provide logistics services like aircraft fasteners, which support Boeing Aggregated Standards Networks (BASN) program. Arguably, BASN program entails planning, storage, ordering, and dissemination of fasteners. Thus, in the process of facilitating the successful operation of BASN program, Boeing Company requires 3PLs such as New Breed to offer services such as outbound and inbound transportation, supply base management, capacity planning, ordering processing, and product storage. Additionally, Boeing uses other 3PLs like Ryder System Inc. to offer logistics services to the company including customized transportation solutions, shipping planning, implementation, and international transportation visibility. Uses of 3 PLs in Improving Boeing Supply Chain Accordingly, the use of third-party logistics improves Boeing Company’s supply chain through continuous improvement and establishment of a global logistics network. Combining latest technology, having a clear comprehension of Boeing lean manufacturing needs and standardized processes, enables Ryder System Inc. to develop an excellent logistic network for Boeing. Besides, third party logistics, such as New Breed and Ryder System have the resources to make improvement and adjustment to every link in the supply chain, thereby, optimizing the company supply chain. As a result, these 3PLs ensures that Boeing Company's needs are met by utilizing the fastest, most proficient, and cost-effective strategies. Understandably, both Ryder SUPPLY CHAIN MANAGEMENT 8 and New Breed have the tools required in restructuring the supply chain as well as use the latest technology to ascertain that the products arrive where needed on time. Additionally, 3PLs, such as Ryder System offers Boeing with audit and payments services for about 2.3million freight bills yearly. In this perspective, Ryder offers the company the industry expertise using the latest technological advancement, which enables Boeing to enhance the quality of its transportation data, hence, lessening the volumes of exceptions. 3PLs, such as New Breed provides the company with flexibility and scalability in its supply chain, for example, labor, space, and transportation. For instance, when Boeing Company started to increase its v-22 aircraft program orders, New Breed included a second shift to accommodate the company’s new orders. This enabled Boeing to expand since New Breed could seamlessly support the company’s new growth. Importantly, using the services of 3PLs aids Boeing to save time and money since it eliminates the need for Boeing to invest in warehouse spacing and transportation. Moreover, New Breed and Ryder save the company from costly errors allowing Boeing to build its logistics network with minimal risk and higher returns. Besides, 3PLs such as Ryder carries out services such as audit, billing, and optimization involved in the supply chain, thus, enabling the company products to reach their destination on time and effectively. The Link between Supply Chain Relationships and Strategies There are different forms of supply chain relationships, such as vertical, horizontal, strategic, tactical, internal, and transactional logistic relationships. Relationships in Boeing’s supply chain play an imperative role in facilitating the SCM process. Besides, relationships are a vital ingredient for successful SCM since it encourages the establishment of trust among partners, thereby, building confidence in the other member's actions and capabilities. Boeing establishes a collaborative relationship between involved parties, for instance, through effective SUPPLY CHAIN MANAGEMENT 9 communication between a company supply chain from the manufacturer, suppliers, and distributors/retailers and ultimately the end user. This relationship facilitates the effectiveness of information flow, culminating in improved response and production time, as well as reduction of waste and costs. For the supply chain relationships to work effectively, the Boeing Company has supply chain strategies, such as customer relationships, supplier inclusion and alliances, and internal collaboration strategies. Supply chain strategies, such as customer integration promotes supply chain relationship since it encourages customer interaction and thus, acquiring inventory, technological, and marketing information from customers. That is, the customer relationship strategy culminates in establishing a relationship with clients and thus gaining a clearer and better comprehension of clients' preferences. As a result, the company uses the information gained to improve the supply chain through timely information. Additionally, supply chain strategies like supplier inclusion and alliances in the supply chain aid in promoting effective relationship since it involves the provision of information as well as participating in decisionmaking. Such effective communication and relationship succors in information sharing leading to enhanced production and product requirement as well as using vendors and company capabilities to manage waste and reduce costs in the supply chain. Importantly supply chain strategies involve collaborating and integrating functions and departments under the supply chain, thereby, enabling the involved parties to fulfill customer requirements. For example, the company joint planning, collaborating, and shared information promote supply chain relationships, thereby, mitigating product delay in the market. SUPPLY CHAIN MANAGEMENT 10 Performance Measures and Risk Management In the process of improving its supply chain, Boeing Company uses supply chain performance measurement, such as client satisfaction, product quality, supply chain response time, resource utilization, and delivery time. Worth noting, Boeing depends on various suppliers to supply the company with different assembling parts. Thus, as part of its risk management, the company ensures that has innovative and efficient contracting management team that reviews the suppliers RFPs prior to awarding the contract. According to Tang, Zimmerman, and Nelson (2009), the company relies on more than 50 suppliers and thus, to manage risk, Boeing contract payment indicates that suppliers should get their payments once the company delivers the product to the customer leading to financial risk management in the supply chain. Recommendations a) It is recommended that the company increase its production ability without undergoing additional costs by decentralizing the manufacturing process. This will enable the company to assemble a Dreamliner in a few days, thus, reducing cycle time leading to increased production. b) Boeing could also adopt vertical integration, thereby, having control of a larger part of its supply chain. This would aid in abating supply chain issues emanating from suppliers delays, defect products, as well as delivery of unfinished products among suppliers. SUPPLY CHAIN MANAGEMENT 11 References Boeing, (2018). General information. Retrieved from: https://www.boeing.com/company/ Boeing, (2018). Boeing reports record 2017 results and provides 2018 guidance. Retrieved from: http://investors.boeing.com/investors/investor-news/press-release-details/2018/BoeingReports-Record-2017-Results-and-Provides-2018-Guidance/default.aspx Christopher, M. (2016). Logistics & supply chain management. Pearson UK. Tang, C. S., Zimmerman, J. D., & Nelson, J. I. (2009, January). Managing new product development and supply chain risks: The Boeing 787 case. In Supply Chain Forum: An International Journal (Vol. 10, No. 2, pp. 74-86). Taylor & Francis.
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