Provide a real-world example where global supply chain uncertainty negatively affected a company’s operations. What was the outcome? What might have been done to prevent the situation?

For any manufacturing organization, supply chain is behaves like a backbone of the company. The whole business of manufacturing organization depends on the supply of their products in the market at the right time. If there is any delay in supply of the product then company may face many problems including loss of their customers. So the supply chain management is the important part of organization strategy. Here we will discuss a case of supply chain management disaster of a famous company.

Let’s take the example of Boeing. We know that Boeing is a renowned name in manufacturing of airplanes. In mid 2000s Boeing was very excited on launching of their new airplane called Boeing 787. They planned to supply these airplanes from 2008. This airplane was very economical with high facilities and commercial airline companies from different countries want to buy this product from Boeing. As a result, many commercial flight companies from around the world booked that airplane and expected that they will get the plane on time. But here the one of the biggest supply chain management disaster comes into scene. Because of bad supply chain management system resulted in a delay of more than three years for supply and comes into service in 2011.

The reason behind is that Boeing wants to handle more than its capacity and they avoid the risks behind it. They change the process of supply chain management process in its organization with analysis of risks and as a result they failed to supply airplanes on time to their customers. Another reason of failure is that they changes in their supply system and the time of their product supply. Outcome is that Boeing so much criticized by their customers and Boeing lost the faith of the customers. Customers from different companies also think about to cancel their order because of late in supply. This incident is so much criticized the customers all over the world and this case also arise a question mark on the supply system on the renowned company.

The mistake was that Boeing made changes in their supply system when they need to supply their product as soon as possible. They think that they will be able to handle this condition but they did not consider the risks in this decision. They could avoid this condition with no change in their supply system during the supply of airplanes, after supply of all the planes they could change in their supply management system and with this activity they could avoid this disaster.