Restructuring procurement

Carlos Cordón and Thomas E. Vollmann

Chapter Chapter 3 in The Power of Two, 2008, pp 47-67 from Palgrave Macmillan

Abstract: Abstract In March 2007, Airbus announced a major overhaul to its operations. Its objective is to cut annual costs by €2 billion and generate cumulative savings of €5 billion by 2010. The lion’s share of the cost savings are to come from reducing headcount by 10,000; outsourcing 50 percent of the airframe structure (double the existing level); developing ten tier-one risk-sharing partners, and gaining 31 percent of the total savings from “smart buying.” Airbus also sees itself becoming much more of a systems integrator than a fabricator.

Keywords: Supply Chain; Capacity Utilization; Collaborative Relationship; Supply Chain Planning; Purchasing Manager (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59496-8_4

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DOI: 10.1057/9780230594968_4

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