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Boeing Australia Limited

In: Business and Management

Submitted By sanjayshrotriya
Words 1752
Pages 8
Table of contents Page
Executive Summary 2
Immediate issues 3
Environment and Root cause analysis 4
Recommendation 5 & 6
Recommendation and implementation 7
Monitor & Control 8
Conclusion 8 EXECUTIVE SUMMARY

Boeing Australia Limited (BAL) was formed in late 1996, relatively new company and a global extension of the U.S. firm. The Boeing Co. developed capabilities in the areas of space and communications, site management, and the upgrade and maintenance of military aircraft and equipment. As BAL grew, so did the legacy information system it used for both internal communications and external dealings with customers. BAL, however, faced difficult decisions as it sought to upgrade its procurement systems and processes to improve operations.

In early 1999, BAL recruited a new national procurement manager, Russell Menere. His immediate task was to look for gains in productivity by improving procurement processes, either through cost savings or by reduced processing time. To meet this objective, he initiated a number of short-term improvements. These included the rationalization of number of BAL's suppliers, improving BAL's relationships with its key suppliers; the introduction of a credit-card purchasing system for low-value, large-volume consumables and the adoption of electronic ordering processes with BAL's larger suppliers. In 2002, with new opportunities available through e-business technology, Russell needs to decide what BAL's next step should be. Should BAL invest in a new system that would simplify the procurement process across different divisions and support complex interfaces with suppliers? Should BAL continue to sit on the fence and seek short-term improvement? Could BAL afford to wait? The main issue would be how to implement and obtain cost effective e-procurement system that is integrated with current

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