BMZ ACADEMY
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, BMZ ACADEMY
BMZ ACADEMY 061 262 1185/068 053 8213
, BMZ ACADEMY
2022 EXAM PAPER
Section A
Title: The strategic effects of supplier chain relationship management
Introduction
Supply chain management is one of the most critical factors determining whether a
company will succeed or fail. Most businesses compete in the market in terms of
position and strategy through an effective and efficient supply chain. Today,
organizations must maintain good supplier relationships to prosper in an unpredictable
marketplace. The study would analyze and elaborate on various areas related to the
supplier effect: barriers within supplier organizations like Boeing, the importance of
ISO in today's business, and quality issues resulting from inefficiencies, among others.
1.1 Supplier relationship is one of the most important aspects that are done by
companies to manage costs and quality. With this aim, Boeng adopted the
collaborative relationship as it seeks to reduce waste through managing its
outsourced materials. This relationship can be found in the case through the
following two statements (direct quotes):
i. Boeing aimed to leverage the advanced capabilities of its network of
suppliers and explicitly decided not to replicate the supplier’s skills in order
to save costs.
ii. Boeing decided to tap into the expertise and capabilities of suppliers in
specific processes and materials.
1.2 Strategies create different operational and strategic barriers to all supply chain
activities. As shown in the above case study, it is important to detect some barriers
that were experienced by Boeing due to its supplier relationships.
i. Complexity of the logistics work
Such a barrier is experienced by the supply chain concerning differences
in the core business of entities. This implies that a new network's
implementation would require much more mistakes and time than usual
with regard to the involved organisations. For instance, Boeing has to
adjust itself when it received parts from different suppliers to get to its
production plant. This means that it took time for re-ordering parts since it
has to adjust its operations to suit the demands of the market. This
BMZ ACADEMY 061 262 1185/068 053 8213
, BMZ ACADEMY
manifested when Boeing delivered its first Dreamliner to ANA in 2011, a
period of 3 years delay.
This barrier, however, can be lowered through outsourcing a single supplier
; that is what means to Boeing-from a new arrangement that they would
enter into with the supplier in such a way that all supplied parts will be
standardised in terms of equal monitoring by Boeing engineers.
ii. Conflicting objectives
Objectives clash because the organisation's short- and long-term aims are
different. In other words, cultural incompatibility would result in poor
communication, which would have an impact on the quality and timeliness
of provided items. This was demonstrated when Japanese suppliers had to
work six days a week whereas Italian suppliers only worked three days a
week (Case study, 2023).
In contrast, the aforesaid obstacle can be overcome by aligning both
immediate and long-term goals. In other words, Boeing and its suppliers 1
must give up certain benefits in order to achieve their aims.
iii. Inventory management is not less difficult
Again with suppliers dotted across the globe, inventory would be difficult to
manage due to the fact that, shipments and transportation of goods take
time to clear. For example, as different suppliers have different working
culture, Boeing would need to wait for a certain supplier such as those in
Italy to open for the materials to be delivered.
The above barrier can be avoided through adopting internet-based
management systems that would deliver information in real time.
iv. The multi-variable problem
It is important to note that, during changing times, management is faced
with different variables that need to be adjusted. This means that today’s
BMZ ACADEMY 061 262 1185/068 053 8213
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, BMZ ACADEMY
BMZ ACADEMY 061 262 1185/068 053 8213
, BMZ ACADEMY
2022 EXAM PAPER
Section A
Title: The strategic effects of supplier chain relationship management
Introduction
Supply chain management is one of the most critical factors determining whether a
company will succeed or fail. Most businesses compete in the market in terms of
position and strategy through an effective and efficient supply chain. Today,
organizations must maintain good supplier relationships to prosper in an unpredictable
marketplace. The study would analyze and elaborate on various areas related to the
supplier effect: barriers within supplier organizations like Boeing, the importance of
ISO in today's business, and quality issues resulting from inefficiencies, among others.
1.1 Supplier relationship is one of the most important aspects that are done by
companies to manage costs and quality. With this aim, Boeng adopted the
collaborative relationship as it seeks to reduce waste through managing its
outsourced materials. This relationship can be found in the case through the
following two statements (direct quotes):
i. Boeing aimed to leverage the advanced capabilities of its network of
suppliers and explicitly decided not to replicate the supplier’s skills in order
to save costs.
ii. Boeing decided to tap into the expertise and capabilities of suppliers in
specific processes and materials.
1.2 Strategies create different operational and strategic barriers to all supply chain
activities. As shown in the above case study, it is important to detect some barriers
that were experienced by Boeing due to its supplier relationships.
i. Complexity of the logistics work
Such a barrier is experienced by the supply chain concerning differences
in the core business of entities. This implies that a new network's
implementation would require much more mistakes and time than usual
with regard to the involved organisations. For instance, Boeing has to
adjust itself when it received parts from different suppliers to get to its
production plant. This means that it took time for re-ordering parts since it
has to adjust its operations to suit the demands of the market. This
BMZ ACADEMY 061 262 1185/068 053 8213
, BMZ ACADEMY
manifested when Boeing delivered its first Dreamliner to ANA in 2011, a
period of 3 years delay.
This barrier, however, can be lowered through outsourcing a single supplier
; that is what means to Boeing-from a new arrangement that they would
enter into with the supplier in such a way that all supplied parts will be
standardised in terms of equal monitoring by Boeing engineers.
ii. Conflicting objectives
Objectives clash because the organisation's short- and long-term aims are
different. In other words, cultural incompatibility would result in poor
communication, which would have an impact on the quality and timeliness
of provided items. This was demonstrated when Japanese suppliers had to
work six days a week whereas Italian suppliers only worked three days a
week (Case study, 2023).
In contrast, the aforesaid obstacle can be overcome by aligning both
immediate and long-term goals. In other words, Boeing and its suppliers 1
must give up certain benefits in order to achieve their aims.
iii. Inventory management is not less difficult
Again with suppliers dotted across the globe, inventory would be difficult to
manage due to the fact that, shipments and transportation of goods take
time to clear. For example, as different suppliers have different working
culture, Boeing would need to wait for a certain supplier such as those in
Italy to open for the materials to be delivered.
The above barrier can be avoided through adopting internet-based
management systems that would deliver information in real time.
iv. The multi-variable problem
It is important to note that, during changing times, management is faced
with different variables that need to be adjusted. This means that today’s
BMZ ACADEMY 061 262 1185/068 053 8213
