Purchasing and procurement in supply chains - Essay Example

Thus, this study was initiated to investigate the application of supply chain management strategy in Boeing Company. The choice of Boeing is based on its strategic position in the aircraft manufacturing sector and the series of problems it faces of late. Using, appropriate theoretical framework, deduced from the work of previous researchers, the company was diagnosed, and the supply chain and suppliers relationship mapped out. Porters value chain framework also help us develop some feedback and the way forward where some value drivers, core competences and competitive advantage were identified.

Having suppliers dotted all over areas and the need to link them through a common data base was emphasized. The report of calls on top management to successfully adjust Porters value chain to suit its need. Our recommendation is for customers and suppliers to be effectively integrated into the value chain, where consumers become Pro-sumers and suppliers are turned into consumers. The existing relationship with partners, suppliers, and customers should be turned in to a long term collaboration relationship.

Boeing should integrate its logistics, procurement, operations, and marketing functions with other supply chain members so that materials, information, component parts, and finished product flow seamlessly from point of origin to final customer at low unit cost and at high levels of service (Christopher 1992). Supply chain management (SCM) is a strategic tool employed by present day business to efficiently integrate suppliers, manufacturers, warehouses, and customers so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time in order to minimize system wide costs while satisfying service-level requirements ( Cheng, Lai & Gunasekaran 2006).

In the 90s, SCM gained momentum and received due attention from practitioners and researchers. It has become present day managerial competitive weapon