Digital transformation critical to Boeing

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 March 11, 2019, © Leeham News: Digital transformation is critical to Boeing’s evolving business model. But suppliers are in no rush to hand over their data to Boeing.

For more than a year, the airplane maker has been moving toward a new system for managing inventory and parts. As LNA noted last year, Boeing Commercial Airplanes’ management expects the new system, known as SAP, will streamline parts delivery and cut costs for Boeing and suppliers. BCA has been pushing suppliers for more transparency of their own supply chains and production flows. It likely would not surprise many industry watchers if BCA moves to integrate its suppliers into SAP in some fashion down the road.

Managers and executives at several suppliers told LNA that they expect Boeing to push for greater access to their companies’ internal data in coming years. They expressed ambivalence between potential efficiency gains and loss of autonomy.

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