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Essay / Supply Chain Management at Gulf Stream - 1345
IntroductionGulfstream Aerospace is one of the world's leading business aircraft manufacturers. They have been building jet aircraft since the late 1950s and continue to create high-end aircraft that have become the symbol of success. Their success comes with an extensive corporate infrastructure and supply chain. First, we'll discuss how Gulfstream uses location to maximize the efficiency of its supply chain. We will then look at the business case for Gulfstream's approach to its supply chain and, in particular, whether it makes sense for a rail car to track supplies while they are on the rail system . Finally, we will examine Gulfstream's "just-in-time" manufacturing and its strategic approach to choosing locations. LocationGulfstream has created more than 1,500 jets since 1958 when it was founded. During this time, they continued to refine their supply chain and have now turned it into an art. One of its key concepts is supply chain localization. Gulfstream's manufacturing headquarters is located in Savannah, Georgia, which is the first key to the supply chain puzzle. Due to its location on the east coast, it provides Gulfstream with access to sea, air and land. Gulfstream keeps its costs low by outsourcing the construction of parts of its planes and sending them to Savannah. Gulfstream has suppliers in the Netherlands, Germany, the United States and Mexico. The rear sections and floors of the Gulfstream G500 and G550 are manufactured in the Netherlands (Thuermer, 2004). These pieces, once assembled, are then shipped to Amsterdam and then to the United States in Savannah. For this reason, access to international shipping is required. Once they arrive in the United States, they are then trucked to the assembly plant on oversized trucks. This short distance between the port and the factory is the key to the chain's success. It would take a lot of coordination for these pieces to travel long distances. The engines are flown from Germany to Atlanta International Airport where they are trucked to the plant in Savannah. Finally, the wings are built in Texas, then shipped by rail to Savannah. All of these connections require their final destination to be centrally located at ports where these parts can be delivered nearby. Relationship with suppliers Gulfstream maintains a unique relationship with its suppliers..