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Why make it easy?

November 15th, 2009 admin Leave a comment Go to comments

Just read a snippet in the Usine Nouvelle (sorry to any remaining non French reading readers) on Airbus’ s plans to store spare parts in India. Now, the Lean Supply Chain geek within me is sort of asking, “weren’t they doing this already”? Or every time the coat peg fell off the back of a seat, were they DHLing the part out, nailing the aircraft to the ground for the best part of three days.

Now let’s imagine that they were already holding spare parts locally, and that cost or other pressures have led them to envisaging outsourcing this service. Now, me and you would have probably either sold off the distribution centre that we owned locally, or had one of our project managers perform a quick sweep of locally available service providers and come up with a 112-slide  Powerpoint presentation on just how he got to his recommendation.

Why make it easy when you can make it complicated? Airbus’s answer. A joint-venture (make that a tri-venture) with an Indian and a Turc!! Who between them share 74% of the capital while, you (or rather, them, Airbus) hold the minority rest. Well that’s going to make performance measurement of the contribution of each party pretty straightforward, isn’t it?

Now, there are obviously some very good reasons which you and I are oblivious of, and which if we understood, we’d be well-placed in the hierarchy of some multinational this evening,  and munching on smoked-salmon sandwiches rather than expressing our astonishment to our regular two readers.

And because I do like salmon, if anybody could explain, I’d be most grateful.

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