Boeing Austrialia

Case Title:

Boeing Australia Limited;

Assessing the Merits of Implementing a Sophisticated e-Procurement System

Executive Summary

My decision is to continue on the same course that Boeing Australia Limited (BAL) is on. I feel, after reading this case study, that BAL has been on the correct path with regard to building their systems architecture. There is a need for a more sophisticated procurement process and the issue of a procurement application may be easily found. The key is the process by which BAL has implemented all other IT applications, they have been very successful. They are thorough and have processes in place to rationalize whether a new by-in application or an in-house developed program would be best. My thought is that at least one, if not more; of the current systems have an appropriate off the shelf application that would work for BAL’s procurement needs. Further investigation through the Materials Management Process Council should reveal an appropriate tool for BAL to use. In this case study I will outline the reasons for my decision and some of the potential cost savings involved.

Statement of Issues

The main issue of this case is to buy a new e-procurement application or to continue to wait for the best case scenario application to come along. It is an important decision that affects many aspects of the business. The potential to lose a client or a critical supplier is possible during this process. An in depth analysis of the situation must be conducted prior to any move toward a process change. Initially, change is difficult in any organization. A new process or system could require retraining or reassignment of staff. Externally, the client may lose faith in the supplier if continued shortages or delays occur during the implementation period of a new process.

Criteria

There are many characteristics to a good decision in this case. The first would be if the outcome was cost neutral or within the budget laid out...