The aerospace group, which marks 100 years in business in 2016, will revise terms that will allow it up to 120 days to pay, rather than 30 days as in the past, when the new payment schedules are rolled out later this year.
Under plans to reduce its factory inventory, Boeing will place greater reliance on suppliers to hold parts instead. Confirming the changes in payment and inventory terms, the group defended them as necessary in helping them to compete when airlines want more capable planes at lower prices.
A programme called Partnering for Success launched in 2012 involved Boeing suppliers cutting their prices by 15%. Reports suggest that the group’s chief executive officer (CEO) Dennis Muilenburg seeks a renewed round of cost cutting.
In addition, Boeing said that it would boost its existing investment in the UK despite the country’s forthcoming exit from the European Union (EU). The group employs more than 2,000 staff in the UK and spends more than GBP 1.4bn annually with 250 suppliers in the country.
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