Another reason Boeing's not moving

Wednesday, June 25, 2003

Boeing's manufacturing strategy for the 7E7 will rely on assembling large components manufactured by second and third tier suppliers. This supplier base is thick around Seattle.

Moving final assembly away from this supplier base, while feasible, does not make sense as a manufacturing strategy. Boeing would increase logistics and inventory costs and slow down the responsiveness of the system. (Think about how auto assembly plants now have suppliers located nearby.)

Read more about Boeing's supplier base.
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posted by Ed Morrison |

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