Bal Case Study
BAL Case Study
Josh Clark
PMAC 2001714
Executive Summary
The continued advances in procurement and information technologies, have presented BAL an opportunity to build on initiatives put in place since 1999. The P-Card initiative has produced cost savings through the shortening of procurement process for non traceable generic goods, but new e-based initiatives must be sought to further stream line the bidding and contracting process.
One tool presently available is e-buy. A tool developed with other large buyers and our Parent company Boeing. Since 80% of the procurement transactions are for these “day-to-day” buys, it is imperative these new processes target this segment. Making the process dimplier and more efficient on these “day-to-day” buys will leave us more time and resources to promote and invest in supplier management programs with our “critical” or “strategic” suppliers. Most of which supply the “traceable” items required. Investing in supplier management will enable BAL to attain total overall cost in the purchase of critical items. Since procurement is only one sector of the information systems at BAL, the time is right for us to look at inexpensive ways to integrate our other “back end” legacy systems to take full advantage of interacting with suppliers and customers alike. This can be achieved by working with our present ERP provider, WDS, to contract with other information system providers to find an inexpensive way of reaching our goals. BAL’s information systems help to execute our core business. This will enable us to leverage new business which is the key to growth and profitability. Now is not the time to “sit-on-the-fence”. If we do, we run the risk of losing our strategic advantage.
Statement of Issues
To maintain BAL’s strategic advantage in the Asia-pacific aerospace industry, we must look at ways to build on the gains we have made, since 1999, in the areas of e-commerce and supplier management. To continue to find ways to
Josh Clark
PMAC 2001714
Executive Summary
The continued advances in procurement and information technologies, have presented BAL an opportunity to build on initiatives put in place since 1999. The P-Card initiative has produced cost savings through the shortening of procurement process for non traceable generic goods, but new e-based initiatives must be sought to further stream line the bidding and contracting process.
One tool presently available is e-buy. A tool developed with other large buyers and our Parent company Boeing. Since 80% of the procurement transactions are for these “day-to-day” buys, it is imperative these new processes target this segment. Making the process dimplier and more efficient on these “day-to-day” buys will leave us more time and resources to promote and invest in supplier management programs with our “critical” or “strategic” suppliers. Most of which supply the “traceable” items required. Investing in supplier management will enable BAL to attain total overall cost in the purchase of critical items. Since procurement is only one sector of the information systems at BAL, the time is right for us to look at inexpensive ways to integrate our other “back end” legacy systems to take full advantage of interacting with suppliers and customers alike. This can be achieved by working with our present ERP provider, WDS, to contract with other information system providers to find an inexpensive way of reaching our goals. BAL’s information systems help to execute our core business. This will enable us to leverage new business which is the key to growth and profitability. Now is not the time to “sit-on-the-fence”. If we do, we run the risk of losing our strategic advantage.
Statement of Issues
To maintain BAL’s strategic advantage in the Asia-pacific aerospace industry, we must look at ways to build on the gains we have made, since 1999, in the areas of e-commerce and supplier management. To continue to find ways to