C H A P T E R 2
GLOBAL COMPANY PROFILE
Boeing’s Global Supply-Chain Strategy
Boeing
Yields Competitive Advantage
B oeing’s strategy for its 787 Dreamliner is unique for its technologically advanced product de-
sign and vast global supply chain.
The Dreamliner incorporates the latest in a wide range of aerospace technologies, from
airframe and engine design to super-lightweight titanium-graphite laminate and carbon-fiber
composites. The electronic monitoring system that allows the airplane to report maintenance
Dan Lamont/Alamy Stock Photo
Peter Carey/Alamy Stock Photo
With the 787’s state-of-the-art design, more spacious interior, and global suppliers, Boeing has garnered record sales worldwide.
Some of the International Suppliers requirements in real time to ground-based
of Boeing 787 Components
computer systems is another product innova-
SUPPLIER HQ COUNTRY COMPONENT tion. Boeing’s collaboration with General Electric
Latecoere France Passenger doors and Rolls-Royce has resulted in the develop-
Labinel France Wiring
Dassault France Design and product life cycle ment of more efficient engines and an emis-
management software
sions reduction of 20%. The advances in engine
Messier-Bugatti France Electric brakes
Thales France Electrical power conversion system technology contribute as much as 8% of the
Messier-Dowty France Landing gear structure increased fuel/payload efficiency of the new
Diehl Germany Interior lighting
Cobham UK Fuel pumps and valves
airplane, representing a nearly two-generation
Rolls-Royce UK Engines jump in technology.
Smiths Aerospace UK Central computer system
Boeing’s design group at its Everett,
BAE Systems UK Electronics
Alenia Aeronautica Italy Upper center fuselage Washington, facility led an international team of
Toray Industries Japan Carbon fiber for wing and tail units aerospace companies in development of this
Fuji Heavy Industries Japan Center wing box
Kawasaki Heavy Ind. Japan Forward fuselage, fixed sections of wing state-of-the-art plane. Technologically advanced
Teijin Seiki Japan Hydraulic actuators design, new manufacturing processes, and
Mitsubishi Heavy Ind. Japan Wing box
a committed international supply chain have
Chengdu Aircraft China Rudder
Hafei Aviation China Parts helped Boeing and its partners achieve unprec-
Korean Airlines South Korea Wingtips
edented levels of performance in design and
Saab Sweden Cargo and access doors
manufacture.
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View Pictures/Alastair Philip Wiper/VIEW/Newscom
View Pictures/Alastair Philip Wiper/VIEW/Newscom
State-of-the-art composite sections of the 787 are built around the Components from Boeing’s worldwide supply chain come together on assembly
world and shipped to Boeing for final assembly. lines in Everett, Washington, and Charleston, South Carolina. Although
components come from throughout the world, about 35% of the 787 structure
comes from Japanese companies.
The 787 is global not only because it has a range of design concepts, and major systems for the 787. Some of
8,300 miles, but also because it is built all over the world. them are shown in the table. The expectation is that countries
With a huge financial commitment of over $5 billion, Boeing that have a stake in the Dreamliner are more likely to buy from
needed partners. The global nature of both the technology Boeing than from its European competitor, Airbus.
and the aircraft market meant finding exceptional engineering This enormous global supply chain delivers more than
talent and suppliers, wherever they might be. It also meant a billion parts and subassemblies to Boeing plants every
developing a culture of collaboration and integration with year. Modern digital technology and analytics help Boeing
firms willing to step up to the risk associated with this revolu- determine which suppliers are working well and which are
tionary and very expensive new product. underperforming.
State-of-the-art technology, multinational aircraft certifica- The innovative Dreamliner, with its global range
tions, the cross-culture nature of the communications, and and challenging worldwide supply chain, is setting new
logistical challenges all added to the supply chain risk. The levels of operational efficiency. As a result, it is the fastest-
challenge was huge. In the end, Boeing accepted the chal- selling commercial jet in history with over 1,200 planes sold.
lenge of teaming with more than 300 suppliers in over a dozen Boeing’s Dreamliner reflects the global nature of business in
countries. Twenty of these suppliers developed technologies, the 21st century.
Boeing’s collaborative technology enables
a “virtual workspace” that allows Everett,
Washington-based engineers, as well as
partners in Australia, Japan, Italy, Canada, and
across the United States, to make concurrent
design changes to the airplane in real time.
Copyright Boeing
Digitally designing, building, and testing before
production not only reduces design time
and errors, but also improves efficiencies in
component manufacturing and assembly.
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