Hello everyone and Seasons Greetings.
After a short pause for the Christmas holiday, Supply Chain Matters resumes with all forms of supply chain commentary.
There were some interesting supply chain developments in the business news last week. A Wall Street Journal (subscription may be required) article noted that in an effort to gain further control of its 787 supply chain, Boeing acquired the remaining 50% of the Global Aeronautica fuselage plant in Charlestown South Carolina. The article notes that Boeing plans to step-up the 787 production schedules to a delivery rate of 7 Dreamliners per month by 2011, and 10 per month by 2013. The full acquisition of the Charlestown facility allows Boeing to tighten supply-chain oversight and speed-up production by opening-up a second final assembly facility by 2012.
The article further intimated that this latest move by Boeing may be an indication that the company may be willing to renegotiate with its key suppliers who have been financially burdened by the two years of Dreamliner delays. Boeing has spent over $1 billion in South Carolina alone, to buy out struggling suppliers.
This site has posted numerous comments related to the supply chain challenges at Boeing. Our latest noted that Boeing must now focus on flawless execution. So far, so good.