This link will bring you to an article on cnncom about the c

This link will bring you to an article on cnn.com about the construction of the Airbus A380: https://www.cnn.com/travel/article/airbus-a380-parts-together/index.html

In class we discussed how the level of supply chain management (e.g. coordination among the members of the supply chain) is determined in part by the relative power of the customer. In this case, Airbus is the \"customer\" and there are approximately 1,500 suppliers who sell component parts to them.

1) How has Airbus\' \"customer power\" affected the supply chain? Provide examples from the article that support your answer.

2) How much power do you think the FINAL customers (the airlines who buy the plane from Airbus) have on the supply chain? Provide some specific examples of how they affect the supply chain.

Solution

1: Air bus has high level customer focus that\'s why they have procure parts across global with high precison and zero compromise on quality aspects. They have designed their supply chain through right mode of transportation and they built exclusive byepass for road transport where they get full support from.the customers. The lead time is acceptable from customers which shows the power of customer.

2: They have huge influence on the supply chain of Airbus. 4 million parts coming from 30 countries play significant role in developing the entire air craft which has to be delivered to the final clients. They have colloborative supply chain system with the customer which helps on estimate the demand more accurately and fulfil the requiremet. The expectation of customers are met properly by accurately design and integrat each and every part.