Boeing has announced a change to its supply chain management, through an allegiance with a supplier that will lead to a reduction in its spare parts inventory.
The company operates an Integrated Materials Management (IMM) system, which means its suppliers hold some of the company's inventory, but through a new deal the aerospace manufacturer hopes to reduce costs by reducing its need to store goods.
"The IMM service network and airline customers will greatly benefit from this experience as we further expand the scope of IMM", explained Joe Brummitt, director of Integrated Materials Management for Boeing.
Boeing's tactic of reducing costs through shrinking its reliance on storage is a common one, and one that most businesses can benefit from.
Reassessing a supply chain is a significant task however, and it may well be advised that outsourcing supply chain management would be the solution.
Outsourcing supply chain management is an effective way of ensuring knowledgeable and experienced professionals are working for the good of a company's supply chain.
Boeing's operation will be an international commitment however, as the company's IMM customers currently include Cathay Pacific, Delta Airlines and SAS.
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