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Procurement Total Cost Analysis: A Supply Chain Strategy for the Aviation Industry

In the aviation industry, purchasing departments spend approximately 80% of revenues on procurement. Additionally, 62% of companies experience unforeseen expenses or hidden costs in the procurement process. Grounded in a conceptual framework of activity-based costing, the purpose of this case study was to explore strategies used by 5 upper-level supply chain management leaders at a maintenance repair and overhaul company in the aviation industry in the Southeastern United States to accurately forecast procurement costs. Data collection included 5 semistructured interviews, company documents, and annual reports. Through thematic analysis, the major themes that emerged from the data analysis were accuracy, competitive advantage, improved corporate performance, and improved total cost analysis. The findings may contribute to social change in the Southeastern region of the United States. The aviation industry is experiencing competition from low-cost countries and the economy of the region and hundreds of families and educational institutions depend on the success of the companies in the region for sustainability.

Identiferoai:union.ndltd.org:waldenu.edu/oai:scholarworks.waldenu.edu:dissertations-6726
Date01 January 2018
CreatorsBadillo, Tulia S
PublisherScholarWorks
Source SetsWalden University
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
SourceWalden Dissertations and Doctoral Studies

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