Courtesy of Jason Busch I saw this pictorial on Boeing and its major suppliers for its new 787. The article calls that global supply chain risky. For as much flying as I do, I do not want Boeing to take unnecessary risks. But from what I have seen, Boeing has been evolving towards this elaborate supplier base for years now. The 787 just takes it a further step out.
A question I frequently get is can IT be too outsourced? My answer is compared to a Boeing or a Porsche or a retailer we are babes in the wood. Both in terms of how much we outsource and how well we synchronize the IT supply chain.
And when we go in to tier 2 suppliers and below, our industry, once you leave hardware and gadgets is medieval in its thinking. See how much basic blocking and tackling software vendors do on their own, versus using third party testing and R&D firms. Or even after massive consolidation, very little product rationalization. Look how little outsourcing outsourcers do themselves as they try to preserve as much margin for themselves. Try getting multiple IT vendors to behave and agree on common delivery goals and timescales.
Boeing is a huge opportunity for tech - both as suppliers of new technologies and with tools to manage its complex schedules and supplier base. But importantly, as an example of how to evolve its own supply chain and keirutsus.
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Can you be too outsourced?
Courtesy of Jason Busch I saw this pictorial on Boeing and its major suppliers for its new 787. The article calls that global supply chain risky. For as much flying as I do, I do not want Boeing to take unnecessary risks. But from what I have seen, Boeing has been evolving towards this elaborate supplier base for years now. The 787 just takes it a further step out.
A question I frequently get is can IT be too outsourced? My answer is compared to a Boeing or a Porsche or a retailer we are babes in the wood. Both in terms of how much we outsource and how well we synchronize the IT supply chain.
And when we go in to tier 2 suppliers and below, our industry, once you leave hardware and gadgets is medieval in its thinking. See how much basic blocking and tackling software vendors do on their own, versus using third party testing and R&D firms. Or even after massive consolidation, very little product rationalization. Look how little outsourcing outsourcers do themselves as they try to preserve as much margin for themselves. Try getting multiple IT vendors to behave and agree on common delivery goals and timescales.
Boeing is a huge opportunity for tech - both as suppliers of new technologies and with tools to manage its complex schedules and supplier base. But importantly, as an example of how to evolve its own supply chain and keirutsus.
Can you be too outsourced?
Courtesy of Jason Busch I saw this pictorial on Boeing and its major suppliers for its new 787. The article calls that global supply chain risky. For as much flying as I do, I do not want Boeing to take unnecessary risks. But from what I have seen, Boeing has been evolving towards this elaborate supplier base for years now. The 787 just takes it a further step out.
A question I frequently get is can IT be too outsourced? My answer is compared to a Boeing or a Porsche or a retailer we are babes in the wood. Both in terms of how much we outsource and how well we synchronize the IT supply chain.
And when we go in to tier 2 suppliers and below, our industry, once you leave hardware and gadgets is medieval in its thinking. See how much basic blocking and tackling software vendors do on their own, versus using third party testing and R&D firms. Or even after massive consolidation, very little product rationalization. Look how little outsourcing outsourcers do themselves as they try to preserve as much margin for themselves. Try getting multiple IT vendors to behave and agree on common delivery goals and timescales.
Boeing is a huge opportunity for tech - both as suppliers of new technologies and with tools to manage its complex schedules and supplier base. But importantly, as an example of how to evolve its own supply chain and keirutsus.
January 29, 2008 in Industry Commentary | Permalink