Check out this Forbes 2/23/24 article titled "Boeing Is Haunted By Two Decades Of Outsourcing" https://www.forbes.com/sites/stevebanker/2024/02/12/boeing-is-haunted-by-two-decades-of-outsourcing/?sh=246a270364a1
WF is at the very beginning of this process. Pretty soon our friends in India will announce a grand and glorious "virtual banking infrastructure" that all of WF tech will need to rely on.
This article details how Boeing is now a case study in how not to outsource a supply chain. In a decade WF may will be a study in how not to outsource banking business processes. While the sign will not be doors flying off of branches they will appear issues since we all know the quality of WF tech's quality management.
Here is a gemini summary:
The article discusses how Boeing's extensive outsourcing practices have resulted in quality issues and safety problems with their airplanes. Historically, Boeing manufactured most parts of its airplanes itself. However, in the past two decades, they've outsourced a significant portion of the design, engineering, and manufacturing to numerous suppliers. This approach aimed to save costs and speed up production time.
The article highlights several lessons Boeing should have learned from outsourcing:
• Close supplier relationships are crucial: Boeing failed to develop strong relationships with its suppliers, hindering communication and coordination throughout the supply chain.
• Quality management is essential: Outsourcing doesn't absolve Boeing of the responsibility for ensuring quality. Recent incidents point to problems with Boeing's oversight of both their own factories and their suppliers' operations.
• Technology is not a silver bullet: Advanced software cannot replace proper management practices. While Boeing utilized sophisticated design software, they lacked robust quality control processes.
The article concludes by mentioning that Airbus, Boeing's competitor, has also outsourced production but hasn't faced similar safety issues. This suggests that Boeing's problems stem from their management approach to outsourcing, not outsourcing itself.