The Boeing Company: Implementing Internal and External B2B Marketplaces Chapter 8 Case 2

n Boeing Company is implementing internal and external B2B e-commerce marketplaces aimed at significantly reducing the costs and complexity of procurement processes. n Problems of dealing with 18 purchase systems across three companies which were developed in the 1960’s to 1970’s. n Changing of the rules and procedures to reduce the 18 systems down to 4 or 5 systems. Challenges of Developing e- Commerce Marketplaces

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

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

Boeing’s SSPN Online Catalog Marketplace n Launched an enterprise-wide Web based/e- procurement system for ordering, acquiring, & paying for nonproduction items. n Online catalog is being used by employees worldwide to purchase office supplies and other nonproduction items.

n Better control on purchasing processes. n Eliminated employees from circumventing the system. n Capture of negotiated purchasing discounts. n Suppliers bill electronically, and are paid electronically. n Reduction in errors and paper processes. n Better discounts and supplier management, and greater efficiencies in purchasing. n Building links to other online B2B marketplaces. Benefits Realized

People Challenge: Change Management n Boeing is finding that dealing with the people and organizational issues caused by the major changes required in procurement processes is a major challenge in both e- commerce projects.