Global Logistics and Supply Chain Strategies - May 2008 - (Page 39)

Together they came up with a more fuelefficient engine, which has found success in the marketplace. More companies should embrace this philosophy of “open innovation,” she says. From Small to Large The concept of a widely distributed supply chain has gone from micro to macro. The latest convert is Boeing Co., whose 787 Dreamliner passenger jet is being assembled from sub-systems contributed by an army of suppliers from various countries. The task of coordinating all those vendors and their thousands of parts is a huge one. In fact, Boeing ran into supplier problems that pushed back flight testing and delivery of the new aircraft by many months. The company cited “ongoing challenges with out-of-sequence production work, including parts shortages, and remaining software and systems integration activities.” Exostar provided the software platform for collaboration between Boeing and its suppliers. Peter Scott, vice president of mar- keting and corporate development, dismisses the 787 delays as “growing pains.” As companies globalize their supply chains and shift more responsibility to suppliers, he says, they go through an inevitable learning curve. Such “partner-based manufacturing models” involve the application of brand new technology and processes, which can lead to glitches along the way. Scott says OEMs are beginning to understand the need for visibility that extends well beyond their Tier 1 suppliers, all the way back to the purchase of raw materials. That’s especially vital for aerospace manufacturers, whose need for highly sophisticated parts often precludes the ability to draw on multiple suppliers for the same item. So when a major supplier goes down, the entire chain is likely to be disrupted. Several OEMs use the Exostar platform to issue production forecasts to suppliers, receive commitments from those suppliers, then manage individual demand signals to orchestrate the shipping of parts from multiple locations. Scott says Exostar is working to tie logistics service providers (LSPs) into the platform as well, in order to track the physical flow of goods and optimize pickups within a given area. The technology allows for the constant trading of messages about the availability and status of orders, so the OEM knows exactly what it’s getting and when. Boeing has labored to incorporate design into its collaboration efforts with suppliers, Barrett says. All are required to utilize the same tools for computer-aided design (CAD) and management of a given product across its entire lifecycle. Increasingly, the development of new product involves a team of independent designers and engineers from several countries, constantly exchanging electronic messages and images to make up for the variation in time zones. Role of Third Parties LSPs have a big role to play in coordinating the links of a complex supply chain. Germany’s Schenker AG works with suppliers from around the world to translate OEM GLOBAL LOGISTICS & SUPPLY CHAIN STRATEGIES 39

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Global Logistics and Supply Chain Strategies - May 2008 Contents Editorial GL and SCS Exclusive Fast Forward Up Front Cover Story: 'Be Prepared Is Motto that All Companies Should Follow When It Comes to Recalls Here and There 1+1=One Opinion Can't Happen Here Industry Voices

Global Logistics and Supply Chain Strategies - May 2008

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