PHOTO: Procurement agent Sheri Sintzel, left, and procurement manager Bob Madigan review information about the F-15. To streamline how it works with suppliers on fighters such as the F-15, Boeing has integrated its needs into one set of requirements. RICHARD RAU/BOEING able to capitalize on synergies across the platforms and production lines. “And that created significant savings for our customers,” said Tim Myers, supplier program manager. Partnering for Success, however, is not just about aircraft parts. It’s about finding more efficient ways of doing business everywhere—even at the gas pump. Commodity costs, such as jet fuel, play a big part in the cost of Boeing products. Boeing consumes nearly 50 million gallons (190 million liters) of jet fuel each year. “It’s hard to believe, but we didn’t have a single contract for the company when it came to buying jet fuel,” said Mike Broughton, procurement agent from Shared Services Group Supplier Management, the business unit 30 Frontiers May 2014 responsible for purchasing all nonproduction goods and services. Instead, he said, Boeing had 10 different contracts spread across Commercial Airplanes, Defense, Space & Security, and Engineering, Operations & Technology. Without one contract for the enterprise, each of the business units was buying jet fuel at different prices and under different contract terms. So a Boeing team was brought together to figure out a better and cheaper way. The result: one contract covering the entire company that reduced the number of suppliers from about 40 to a handful—and saved millions of dollars almost immediately. The team also negotiated coverage for an additional 28 Boeing sites around the world. “It’s amazing what we can accomplish when we work with our supplier partners,” Broughton said. “Partnering for Success has brought the relationships we built with our suppliers to a whole new level.” n elizabeth.a.verdier@boeing.com antonella.bellman@boeing.com To see a video about PECO’s work for Boeing, visit boeing.com/frontiers/videos/ may14. For more about Partnering for Success, see the Leadership Message in the March 2014 issue of Frontiers.
Frontiers May 2014 Issue
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