RESEARCH PROJECT

Research Project

Abstract

This project describes the changes that are taking place in the structure of aerospace material supply chains as an effect of recession and new programmes initiatives. The literature review part supports the evidence through different theories and opinions given by scholars. In the end, case study results are presented of one firm that has changed its business hub from being a supplier to a single supply material service provider.

Table of Contents

ABSTRACT2

CHAPTER 14

Introduction4

Purpose of the Study5

Research Question6

CHAPTER 27

Literature Review7

CHAPTER 312

Methodology12

CHAPTER 414

Results14

Data analysis14

CHAPTER 519

Conclusion19

Recommendations20

REFERENCES22

APPENDIX26

Chapter 1

Introduction

Harland et al. (1999) indicates that the evolution of supply chain management theory is driven by rapid changes in global business practice. The worldwide recession of the late 1980s and early 1990s forced firms to re-examine, at a strategic level, the ways in which they aimed to add value and reduce costs throughout their business. The resulting changes brought about large-scale programmes of rationalisation and organisational “down-sizing”, (Kanter, 1994; Porter, 1990; Prahalad and Hamel, 1990), cost reduction drives, quality improvement initiatives and inventory reduction programmes (Slack, 1991; Womack et al., 1990). This research describes the changes that are occurring in the structure of aerospace material supply chains as a result of these initiatives. Case study results are presented of one organisation that has changed its business focus from being a supplier to a “single source material service provider”.

Evidence presented here supports the argument that there has been a general change in organisations' desire to integrate vertically. The current tendency is for firms to cooperate more closely rather than maintaining a diverse range of internal skills and resources. The literature demonstrates that since the mid 1980s many industries have developed a more open approach towards cooperation rather than vertical integration (Porter, 1987; Thackray, 1986). The trend has been for large, vertically integrated organisations to gradually reduce the financial risk associated with operating broad business portfolios. Cooperating firms tend not to have become locked in inappropriate, non-core activities and have been able to attain an increased global coverage capability (Miles and Snow, 1987).

The operations management concept of “focus” (Skinner, 1969) is central in the development of this strategy. Organisations concentrate on a limited and closely related task load, which, by the nature of its manageability, allows for the development of an increased competency level. “Non-core competencies” (Prahalad and Hamel, 1990) are classed as periphery activities, which can be outsourced to specialist organisations (Snow and Miles, 1992). The focus of this paper is the web of interdependent relationships that results from focussed operations and cooperation, driven by the trend in globalisation.

Purpose of the Study

The main purpose of this research Project is to explain the changes that are occurring in the structure of aerospace material supply chains as a result of these initiatives.

Research Question

Q. How the worldwide recession of the late 1980s and early 1990s forced firms to re-examine, at a strategic level, the ways in which they aimed to add value and reduce costs throughout their business?

Chapter 2

Literature Review

A research study is a ...