Chain, chain, chain

Published 9:00 pm Wednesday, January 11, 2006

Lest we forget that it’s not ALL about the jets, Purchasing.com weighs in with this article http://www.purchasing.com/article/CA6297749.html?industryid=2161 on changes Boeing’s made to its supply chain.

Key Quote from Steve Schaffer, vice president of Global Partners at Boeing Commercial Airplanes: “‘Some critics say we chase labor rates around the world and that we will place work at any price to make a sale,’ he says. ‘But the industry has evolved over the years to become competitive worldwide. Most countries are aggressively investing in new technology and building a very capable industrial base from which to compete.’ “

He continued: “Market access is a business reality in competing in a global market where Boeing’s sales are 70% overseas. ‘So, any time we can match this capability and access airplane sales in a particular region, that translates to a win/win for our customers, supplier partners and employees,’ he says.”

Which explains a lot why Boeing’s going to buy parts from India.

The Press Trust of India http://www.atimes.com/atimes/South_Asia/HA13Df01.html reports that:

Key Quote: “Delhi had made it mandatory for aircraft manufacturers abroad to outsource aerospace system works valued at at least 30% of the total deal size. ‘We are scouting for companies for sourcing components … These contracts will be finalized soon,’ Mulally said.”