The Boeing Company:Implementing Internal and External

B2B Marketplaces

The Boeing Company:Implementing Internal and External

B2B Marketplaces

Chapter 8Chapter 8

Case 2Case 2

Boeing Company is implementing internal and Boeing Company is implementing internal and external B2B e-commerce marketplaces aimed at external B2B e-commerce marketplaces aimed at significantly reducing the costs and complexity of significantly reducing the costs and complexity of procurement processes.procurement processes.

Problems of dealing with 18 purchase systems Problems of dealing with 18 purchase systems across three companies which were developed in across three companies which were developed in the 1960’s to 1970’s.the 1960’s to 1970’s.

Changing of the rules and procedures to reduce the Changing of the rules and procedures to reduce the 18 systems down to 4 or 5 systems.18 systems down to 4 or 5 systems.

Challenges of Developing e-Commerce MarketplacesChallenges of Developing e-Commerce Marketplaces

Take all of the multiple back-end purchasing Take all of the multiple back-end purchasing systems and create a single B2B e-procurement systems and create a single B2B e-procurement process and supporting system for purchasing process and supporting system for purchasing indirect parts.indirect parts.

Vision at BoeingVision at Boeing

Boeing’s Procurement SystemBoeing’s Procurement System

Boeing is implementing a major project to Boeing is implementing a major project to reduce the number of company procurement reduce the number of company procurement systems and build Web links to Exostar, the systems and build Web links to Exostar, the aerospace B2B marketplace, as well as aerospace B2B marketplace, as well as other online marketplaces.other online marketplaces.

Boeing’s SSPN Online Catalog MarketplaceBoeing’s SSPN Online Catalog Marketplace Launched an enterprise-wide Web based/e-Launched an enterprise-wide Web based/e-

procurement system for ordering, acquiring, procurement system for ordering, acquiring, & paying for nonproduction items.& paying for nonproduction items.

Online catalog is being used by employees Online catalog is being used by employees worldwide to purchase office supplies and worldwide to purchase office supplies and other nonproduction items.other nonproduction items.

Better control on purchasing processes.Better control on purchasing processes. Eliminated employees from circumventing the Eliminated employees from circumventing the

system.system. Capture of negotiated purchasing discounts.Capture of negotiated purchasing discounts. Suppliers bill electronically, and are paid Suppliers bill electronically, and are paid

electronically.electronically. Reduction in errors and paper processes.Reduction in errors and paper processes. Better discounts and supplier management, and Better discounts and supplier management, and

greater efficiencies in purchasing.greater efficiencies in purchasing. Building links to other online B2B marketplaces.Building links to other online B2B marketplaces.

Benefits RealizedBenefits Realized

People Challenge: Change ManagementPeople Challenge: Change Management Boeing is finding that dealing with the Boeing is finding that dealing with the

people and organizational issues caused by people and organizational issues caused by the major changes required in procurement the major changes required in procurement processes is a major challenge in both e-processes is a major challenge in both e-commerce projects.commerce projects.