Operations and Supply Chain Management The Core

CHAPTER 13
GLOBAL SOURCING
AND PROCUREMENT
Learning Objectives
LO13–1 Explain what strategic sourcing is.
LO13–2 Explain why companies outsource processes.
LO13–3 Analyze the total cost of ownership.
LO13–4 Evaluate sourcing performance.
BOEING 787 DREAMLINER—ASSEMBLED IN SOUTH
CAROLINA FROM COMPONENTS SOURCED FROM
AROUND THE WORLD
Boeing has always assembled its large jets in Seattle, Washington, but Boeing
rolled out the first jetliner made in the American South on April 27, 2012, amid fireworks
and the cheers of thousands of workers. By 2016, the plant was producing
12 of the revolutionary aircraft per month and that is expected to increase to 14 per
month by 2020.
Other than the new assembly location, the 787 uses global subcontractors who
deliver completed subassemblies to the South Carolina plant. Wings, for example,