?Electronic Commerce – Application Case: Boeing’s spare PART marketplace 1. What motivated Boeing to create PART? Boeing, the world’s largest maker of airlines was disposed to deliver a good customer service, especially for maintenance needs and spare parts. Before Boeing established the PART marketplace, it was a very complex and costly process for customers to get a specific part they needed. These parts were ordered by telephone or fax, that’s why Boeing had to install a lot of labor to manage about 600 phone calls a day.
This complex process caused a lot of administrative mistakes and wrong deliveries, which in turn meant more costs for Boeing. First, the largest airlines established EDI connections with Boeing over VAN’s, but this system was also very complex and costly and the majority of the airlines didn’t use it. With the use of the Internet, Boeing saw a huge potential to achieve even more customers in a cheaper and more efficient way. The good-working PART system may even encourage customers to buy Boeing aircrafts because of the good service quality. 2.Order now
What motivated the move from EDI to the Internet? Until 1992 only 10 percent of the largest customers were using EDI to order parts from Boeing. The main reasons for this weak performance were high costs and the complexity of VAN-based EDI. The internet itself is characterized by a very easy and cheap access, and Boeing saw the opportunity to encourage more of its customers to order parts electronically. Not only the largest airlines ordered their parts via the internet but also the smallest airline or company was now able to participate in PART.
Consequently Boeing was able to increase the order volume in a very short period and could save money at the same time, because more than 600 phone calls per day were eliminated. Boeing was able to satisfy their customers on the one side, and work more efficiently on the other side. 3. List some of the information provided by PART. Check parts availability and pricing Track order status View up-to-date part information Search for partial part numbers Check interchangeability Quote information (request or view price quotes) Additional service in FAQ (Frequently Asked Questions) 4.
List and briefly discuss the benefits of PART to Boeing. Cost saving Boeing was able to save costs by establishing PART because they didn’t have to install so much labor for managing phone calls or administrative work. Improve Customer relationship With the help of PART Boeing was able to encourage more of its customers to order parts electronically and the improved service led to a higher customer satisfaction Ensure the companies’ leading position on the global market PART also contributed to the good reputation and image. Potential customers are more willing to make an aircraft purchase. Simplify the procurement process
With the use of PART and the webpage multiple orders can be analyzed within a very short period Avoid administrative errors The concentrated source of information and the more structured and less complex way of ordering led to a lower rate of administrative failure 5. List and briefly discuss the benefits of PART to Boeing’s customers. Higher quality and availability of information Customers can view up-to-date part information such as prices, availability, interchangeability or even partial part number search. The internet and the opportunity to update information within seconds contributed to this improved quality of information.
Access for smaller customers The VAN-based EDI was mainly used by the largest airlines because it was very expensive. The use of internet and PART isn’t expensive at all, and made it possible for even the smallest company to order parts electronically. Improved order system Customers can order 25 items at a time and change or add orders without big effort or time-killing phone calls. Improved customer service If personal service is needed PART supplies with contact data. A lot of uncertainties are solved with the use of FAQ (Frequently asked questions). Accuracy and speed
PART contributed to a faster and more precise working order process in comparison to order parts via telephone or fax, where human failure is always possible. Handling The use of PART is uncomplicated and intuitive for first-time users. This is very important because it saves time and reduces mistakes. Cost saving Except of the local internet access, no costs incur for the customer. It is a very cheap way of communication and business. Improved survey of business Customers can check their orders online at every time and they always know the status of their tasks.