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

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

Products

Clients

• Airbus

• Lockheed Martin

• Nothrop Grumman

Competitors

• 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

• 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

747Price

• 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

767

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

Price

• 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.

Services

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