The Journey Towards Functional Excellence in Non-Production Procurement at Boeing

The Journey Towards Functional Excellence in Non-Production Procurement at Boeing

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The Boeing Company | Ernst & Young

Boeing defines Non-Production Procurement as all materials and services that do not take off (from a runway). When you consider the scale, complexity and diversity of Boeing's commercial and defense businesses, that means that the Shared Services Supplier Management organization has a challenging role. This group has been on a journey over the past several years to centralize the spend, to establish consistent, standard transactional processes, and to drive for compliance, resulting in sustainable and significant cost savings for the corporation. More recently, the focus has been on increasing the value Boeing derives from its spend in this area by implementing a contract management solution, and supporting a Category Management group that brings together internal customers in a structured governance model that aligns with the corporation's strategic objectives and that drives lower Total Cost of Ownership.

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