Airbus looks at supply chain management and outsourcing for better operational efficiencies and cost cutting
Semantha Esposito
Sep. 24, 2006

The European aviation major Airbus is taking a major corporation wide reengineering process to overhaul the supply chain management and outsourcing processes for better operational efficiencies and cost cutting.

Airbus in recent days has faced massive competition from Boeing and some Russian and Brazilian commercial aircraft manufacturer. To secure fast growth it has to match Boeing in Technology, productivity and procurement efficiencies.

While Airbus is as competitive as Boeing in manufacturing and design productivity, it has to match the procurement efficiencies of Boeing. The biggest challenge comes from India, Chinese, Russian and Brazilian manufacturers in coming years. Airbus must maintain operational and procurement efficiencies to be in the lead position.

The cost savings from procurement efficiencies can be enormous. They plan to use supplier integration matrix (SIM) and other procurement methodologies. They plan to revamp supply chain management to make it further efficient and that can produce enormous cost savings.

Above all Airbus plans to look for outsourcing into India, China and Brazil to tap into the talents of those countries and produce more aircrafts for the local markets in these countries.

Airbus looks at supply chain management and outsourcing for better operational efficiencies and cost cutting
Semantha Esposito
The European aviation major Airbus is taking a major corporation wide reengineering process to overhaul the supply chain management and outsourcing processes for better operational efficiencies and cost cutting.
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