Principles of Supply Chain Management, Second Edition, 2nd Edition

564 Principles of Supply Chain Management

subassemblies to supply partners who share the risk and rewards of being part of

a larger project, such as building an aircraft. However, there are voices on the hori-

zon expressing caution as to the long-term effects of a supply chain that outsources

excessively, including the design and manufacturing of major subassemblies, such as

wings and fuselages. It should be acknowledged that Airbus has some similarities

with Boeing in that it outsources over a wide geographic area, primarily four major

countries in the European Union (EU). But it does not excessively outsource design like

Boeing has on its Dreamliner (MacPherson and Pritchard 2007).

It should also be recognized that in the building of a large ...