Boeing to cut management layers in streamlining of supply chain
Boeing has begun a push to streamline its supply chain, reducing overlap between existing divisions and cutting layers of management and bureaucracy. The company hopes any nonmanagement employment cuts can be achieved through attrition or reducing contract labor, not layoffs.
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Updated November 10, 2017 at 5:30 pm - By Dominic Gates - Seattle Times aerospace reporter
Boeing has begun a push to streamline its supply chain, reducing overlap between existing divisions and cutting layers of management and bureaucracy.
The move may reduce overall employment over time, though Boeing spokeswoman Jessica Kowal said the company hopes to avoid nonmanagement layoffs.
"We do expect fewer managers and fewer layers," Kowal said. "There may be fewer employees in the organization over time. We anticipate that would be addressed primarily through attrition or by reducing contract labor."
The efficiency push is driven locally by new Boeing Commercial Airplanes Chief Executive Kevin McAllister and from Chicago by Jenette Ramos, Boeing's senior vice president of Supply Chain & Operations.
Kowal said McAllister wants "a fresh look at how we can manage our supply chain better."
Boeing's enormous global supply chain delivers more than a billion parts to its assembly plants every year, everything from buckets full of fasteners to entire wings for its 787 Dreamliner.
The management of that global network — first of all, determining who will supply each piece of the giant, complex puzzle that is an aircraft, a missile or a space satellite, and then the logistics of delivering those supplies at just the right time — is the focus of Boeing's plan.