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Supply Chain Industry Updates

Boeing Gets Half-Billion-Dollar Logistics Contract

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The federal Defense Logistics Agency (DLA) has awarded a $477 million 5-year contract to Boeing to provide full supply chain management and logistics services for multiple weapon systems platforms.

Boeing said it will be responsible for forecasting, demand planning, acquiring, stocking, packaging and shipping individually priced consumables directly to warfighter locations to satisfy daily demand requirements. The first phase includes the delivery and supply chain management of Honeywell proprietary parts licensed exclusively to Boeing and is valued at $39 million.

“Boeing’s supply chain management and distribution capabilities will help ensure parts are accessible whenever and wherever they are needed based on their use, while reducing inventory and logistics lifecycle costs,” John Guasto, director of global integrated services support, said in a company statement.

The world’s largest aerospace company, Boeing has a history of supplying logistics support to the government. Last week, DLA awarded the Chicago-based company a $150 million contract to support the military’s program for the KC-46 Pegasus tanker (seen above).

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