Business School 101 Lecture Notes

Introduction to Boeing and Supply Chain Management

• Boeing is known for manufacturing commercial and military airplanes, comprising over 3 million parts per airplane.
• Employs over 140,000 people in 60 countries, with numerous suppliers globally.
• Reliable supply chain management is crucial for Boeing's success, especially highlighted during the COVID-19 pandemic.

What is a Supply Chain?

• Definition: A supply chain is the network between a company and its suppliers to produce and distribute a product to the final buyer.
• Components: Includes activities, people, entities, information, and resources.
• Global vs Local Supply Chains: Global supply chains span multiple countries and continents, involving the flow of information, processes, and resources worldwide.

Benefits of Global Supply Chain

1. Customer Satisfaction:

   • Ensures timely delivery and customer loyalty.
   • Allows for special orders during high demand and reduces inventory costs.

2. Broader Perspective:

   • Expands learning opportunities and innovative problem-solving due to diverse business practices around the world.

3. 24/7 Availability:

   • Continuous operations across time zones ensure that supply chain requirements are met at all times.

4. Sourcing Opportunities:

   • Access to better quality and lower-cost goods and services.
   • Promotes economic viability and high standards of quality.

5. New Markets:

   • Facilitates expansion into new locations and access to a larger customer base.
   • Requires strategic planning of resources.

Emerging Technologies in the Global Supply Chain

• Challenges: Global supply chains are vulnerable to risks like cybersecurity threats, delays, and unforeseen events.
• Technologies: New technologies enhance visibility and resilience in supply chains. Companies are increasingly leveraging:
  1. Internet of Things (IoT):
     • Interconnected devices that monitor and exchange data.
     • Used for tracking products, monitoring storage conditions, and more.
     • Examples: Farmers monitoring soil moisture; manufacturers identifying defects with IoT cameras.
  2. Artificial Intelligence (AI) and Machine Learning:
     • AI enhances visibility, decision-making, and predictive analysis of supply chain data.
     • Example: Geek Plus uses AI for real-time warehouse operation monitoring, optimizing processes based on historical data.
     • Reports indicate 61% of executives see cost reductions, and 53% report increased revenues after AI implementation.
  3. Blockchain:
     • A distributed database for recording transactions and information across the supply chain.
     • Increases traceability, lowers losses from counterfeiting, and improves compliance.
     • Examples: Provenance tracks responsible sourcing of tuna; Monograph secures digital media usage rights.

Conclusion

• Recap: Global supply chains provide significant benefits over local supply chains, including:
  • Customer satisfaction
  • Broader perspectives
  • 24/7 availability
  • Sourcing opportunities
  • Access to new markets
• Emerging Technologies: IoT, AI, machine learning, and blockchain enhance visibility and control.

Engagement

• Encouragement for audience feedback and engagement regarding the future of global supply chains.