Friday 1 November 2013

Can Boeing and Its Suppliers Succeed by Teaming Up?


Boeing (NYSE: BA) has launched a new program to help its suppliers -- in return for a little favor from them. The aerospace giant's offering to work closely with the companies that supply parts for its military and commercial aircraft, helping them redesign their supply chains and improve their productivity.
But in exchange, those suppliers will have to charge Boeing less when they renew their contracts. Let's see how this program might affect two of Boeing's most prominent suppliers, Spirit AeroSystems (NYSE: SPR) and TransDigm (NYSE: TDG).

One easy way of assessing the impact of Boeing's "Partnering for Success" program on a supplier is to find out how much of its revenues come from Boeing. BA.

No comments:

Post a Comment