B2B - Boeing: By: Anoop Jena (FPG0709/019)

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B2B - Boeing

By : Anoop Jena (FPG0709/019)


A name in the Sky
• Boeing is the world's leading aerospace company and
the largest manufacturer of commercial jetliners and
military aircraft combined
• As a major service provider to NASA, Boeing operates
the Space Shuttle and International Space Station
• The company also provides numerous military and
commercial airline support services
• Boeing has customers in more than 90 countries around
the world and is one of the largest U.S. exporters in
terms of sales
• Headquartered in Chicago, Boeing employs more than
160,000 people across the United States and in 70
countries
Products
787
747-8
707
717
727 (727-100/-100C/-200)
737 (737-200/-200C)
737 (737-300/-400/-500)
747 (747-100/-200/-300/SP)
757 (757-200/-300)
DC-8
DC-9
DC-10
MD-80
MD-90
MD-11

In Production
Clients
Competitors
• Airbus

• Lockheed Martin

• Nothrop Grumman
Price
• The commercial airline jet prices are as follows:
• Airplane Families 2007 $ in Millions
• 737 Family
• 737-600 50.0 -- 57.0
• 737-700 57.0 -- 67.5
• 737-800 70.5 -- 79.0
• 737-900ER 74.0 -- 85.0

737
Price 747

• The commercial airline jet prices are as


follows:
• Airplane Families 2007 $ in Millions
• 747 Family
• 747-400/ -400ER 228.0 -- 260.0
• 747-400/ -400ER Freighter 232.0 -- 261.0
• 747-8 285.5 -- 300.0
• 747-8 Freighter 294.0 -- 297.0
Price
767

• The commercial airline jet prices are as


follows:
• Airplane Families 2007 $ in Millions
• 767 Family
• 767-200ER 124.5 -- 135.5
• 767-300ER 141.0 -- 157.5
• 767-300 Freighter 151.0 -- 162.0
• 767-400ER 154.0 -- 169.0
Price
• The commercial airline jet prices are as
follows:
• Airplane Families 2007 $ in Millions
• 777 Family
• 777-200ER 200.0 -- 225.0
• 777-200LR 231.0 -- 256.5
• 777-300ER 250.0 -- 279.0
• 777 Freighter 246.0 -- 254.0

777
Price
• The commercial airline jet prices are as
follows:
• Airplane Families 2007 $ in Millions
• 787 Family
• 787-3 146.0 -- 151.5
• 787-8 157.0 -- 167.0
• 787-9 189.0 -- 200.0
Services
• Boeing and its family of companies help aviation and transportation industry
customers enhance their profitability by providing lifecycle business
solutions, materials and engineering services, and 24x7 global customer
support.

• Customer Support
• Lifecycle Solutions
• Boeing provides its lifecycle solutions through its Commercial
Aviation Services unit, whose family of companies include:
• The world's premier aviation training partner.
• The leading solutions provider of aftermarket supply-chain
management services for the aerospace, defense and marine industries.
• Leading information solutions provider for the aviation,
marine and rail industries.
Architecture

• Buyer-oriented marketplace eg Airbus


• Seller-oriented marketplace, eg Dell, Intel
• Intermediary-oriented marketplace, eg
Boeing’s PART
Boeing Surplus Sales
Boeing’s PART Marketplace
• Acts as an intermediary between the
airlines and parts’ suppliers
Provides a single point of online access for
airlines and parts’ providers to access the
data needed
• Goal: provide its customers with one-stop
shopping for online parts and maintenance
information and ordering capability
Boeing’s PART Marketplace(cont.)
• Benefits of PART online
– Improved customer service
– Significant operating savings
– New sales opportunities
– Customer service online reduced
– Portable access to technical drawings/support
– Portable Maintenance Aid (PMA)—solves
maintenance problems
Boeing’s PART Marketplace (cont.)

• Benefits to Boeing’s customers


– Increased productivity—less time searching
for information
– Reduced costs—delays at gate reduced
because all information is available
– Increased revenues—faster service provides
time savings
Buy Side Marketplaces:
One-from-Many
• Goals of e-procurement
– Increase purchasing agent productivity
– Lower purchasing prices of items
– Improve information flow and management
– Minimize maverick (unplanned) buying
– Improve payment process
– Streamline purchasing process to make it
simple and fast
Buy Side Marketplaces:
One-from-Many (cont.)

• Goals of e-procurement (cont.)


– Reduce administrative processing cost per
order
– Find new suppliers and vendors to provide
faster/cheaper goods and services
– Integrate procurement process with budgetary
control in an efficient and effective way
– Minimize human errors in buying or shipping
process
Buy Side Marketplaces:
One-from-Many (cont.)
• Implementing e-procurement
– Review and change procurement process
itself
– Provide interfaces between e-procurement
with integrated EIS
– Coordinate buyer’s information system with
the sellers
Buy Side E-Marketplaces:
Reverse Auctions
• Buy-side e-marketplace—a Web-based
marketplace in which a buyer opens an
electronic market on its own server and invites
potential suppliers to bid on the items the buyer
needs; also called the reverse auction,
tendering, or bidding model
• Request for quote (RFQ)—the “invitation” to a
buy-side marketplace (reverse auction)
Buy-Side B2B Market Architecture
Conducting Reverse Auctions
• Reverse auctions administered from a
company’s Web site
– Bidding process lasts a day or more
– Bidders may bid only once or view the lowest bid and
rebid several times
• Increasing number of reverse auction sites
makes it impossible for suppliers to monitor all of
them
– Online directories list open RFQs
– Use software search-and-match agents to reduce the
human burden in the bidding process
Fact File
• SEATTLE, March 11, 2004 -- Boeing [NYSE] in
January set an aviation industry record when its
secure business-to-business World Wide Web
portal, MyBoeingFleet.com, exceeded 10 million
hits from more than 17,000 users worldwide
• Those users downloaded approximately 426
gigabytes of data, equivalent to 17 million pages
of text
• MyBoeingFleet provides airline customers with a
single point of entry to numerous data sources
essential to the ownership, operation and
maintenance of Boeing commercial airplanes
Thank You

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