Boeing Reaches Out to Suppliers Amid 737 MAX Crisis
Boeing Seeks to Ease Tensions with Supply Chain
Boeing executives have reached out to their supply chain this week in an attempt to deal with the aftermath of the latest 737 MAX crisis. However, suppliers are adopting a cautious approach after experiencing the planemaker’s previous hard-line tactics.
Shift in Tone from Boeing
Leading the shift in tone was Ihssane Mounir, Boeing’s vice president of supply chain and fabrication, who emphasized the need for unity between Boeing and its suppliers. This approach marked a departure from the company’s previous policies, particularly its “Partnering for Success” initiative, which was designed to cut supply-chain costs but was met with resistance from suppliers.
Mixed Responses from Suppliers
While some suppliers are cautiously optimistic about Boeing’s change in approach, others remain skeptical and want to see tangible evidence that the company is willing to support them during this challenging time.
Boeing’s Response to the 737 MAX Crisis
Boeing is facing increased pressure from regulators and lawmakers following the 737 MAX accident near Portland, Oregon. The company is struggling to meet demand for new planes while dealing with the challenges brought on by the COVID-19 pandemic.
A New Approach from Boeing
Instead of focusing on cost-cutting and production speed, Mounir stressed the importance of maintaining manufacturing standards and uncompromised quality. The company has also launched a forum to facilitate the sharing of best practices among suppliers.
Suppliers Gain Leverage
According to analysts, suppliers now have more leverage than ever and can ask for beneficial contract terms, reflecting a “new normal” in the relationship between suppliers and planemakers.
Boeing’s willingness to work with its supply chain and provide support will be crucial in navigating the challenges brought on by the 737 MAX crisis and the broader disruptions in the aerospace industry.
