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Logistics Management. Supplier Evaluation at EADS Company - Case Study Example

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EADS (European Aeronautic Defense and Space) was a major global player in the aerospace sector. Having just a handful of other companies offering similar products, EADS Company’s market was structured in an oligopolistic manner. …
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Download file to see previous pages The company recorded a sales volume of approximately €30 billion, a figure only dwarfed by its biggest competitor in the aerospace market, which recorded approximately €40 billion worth of sales. Other competitors followed closely with sales averaging between €10 billion to €20 billion. Most of the company’s sales came from Europe and North America and therefore the company intended on making adjustments to improve sales in the Asian and South American regions.
The company’s main clientele comprised of major airlines around the globe. These airlines employed the business strategy of increasing purchases in order to get price reductions based on traded volumes. The nature of the aerospace industry was such that value addition on merchandise was capped at between 25%-35%. Therefore, the organizations that were tasked with supplying these products formed an integral part in developing competitive advantages for EADS and other companies in the industry. They additionally became a potential advantage for reducing expenses and risk besides enhancing revenues.
Suppliers in the Aerospace Industry
The nature of the aerospace industry demanded that suppliers provide goods and merchandise of the highest quality. The goods needed to be durable, and had to meet some specific quality requirements. ...Download file to see next pagesRead More
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