Introduction to Supply Chain Management - Essay Example

They claimed that the quality of the parts they have been receiving from the outsourcing company were not up to standards. Inventory was then packed with products that were no longer of use to Boeing, losing them millions of dollars. Further investigations revealed that the outsourcing company wasn’t being watched over as closely as the engineers and companies throughout the country. Boeings main reason for outsourcing revolved around revenue purposes. The report finds that inventory product quality, as well as quantity supply is crucial within organizations and can cause a lot of problems if not watched and dealt with carefully.

It is recommended that: the battery is dramatically improved by watching the quality of the parts inserted; Boeing launch and promote a campaign assuring non-faulty batteries; and resumes are looked over again by company officials. The limitations that may occur are that a product such as an airplane may require off shoring because some expertise exists only in foreign countries. Also, while there is nothing necessarily wrong with off shoring, the cultural and language differences as well as physical distances can add to the supply chain risks.

Boeing is one of the major companies in the world that manufactures defense and commercial jetliners and security and space system. The company is faceted into two major business entities: the Boeing Space and Security and the Commercial airplane (Hiltzik, 2011). In addition, its other products are electronics, weapons satellites, defense system, military aircraft, systems of information and communication that are advanced et cetera. The company is not only one of the leading exporters of the US but also have connection with customers in the various countries of operation (approximately more than 150 nations).

The company’s headquarters is in Chicago and it provides employment opportunities to approximately 180,000 individuals in the US and other nations