Boeing facing criticism for hard-nose supplier approach

Airplane maker The Boeing Co. is facing heat these days for its determined stance in dealing with suppliers. Despite record orders, Boeing is getting some criticism for an initiative calling for some suppliers to cut costs, according to Bloomberg. Boeing’s Partnering for Success initiative aims to streamline the manufacturer’s supplier chain. And based on financial returns — with its shares doubling since the start of 2017 — Boeing can argue its plan is working. However, Bloomberg cites suppliers who claim Boeing is seeking 10 percent price cuts for their products. Boeing is coming off a bustling 2017. Boeing secured orders worth more than $90 billion in November alone. Among the highlights

Boeing

Airplane maker The Boeing Co. is facing heat these days for its determined stance in dealing with suppliers. Despite record orders, Boeing is getting some criticism for an initiative calling for some suppliers to cut costs, according to Bloomberg.

Boeing’s Partnering for Success initiative aims to streamline the manufacturer’s supplier chain. And based on financial returns — with its shares doubling since the start of 2017 — Boeing can argue its plan is working.

However, Bloomberg cites suppliers who claim Boeing is seeking 10 percent price cuts for their products.

Boeing is coming off a bustling 2017. Boeing secured orders worth more than $90 billion in November alone.

Among the highlights of the month — which included the Dubai Air Show — was the $27 billion order from flydubai for 225 737 MAX airplanes. The deal represented the largest-ever single-aisle jet order — by number of airplanes and total value — from a Middle East carrier.

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