Question

How has The Boeing 737 Max Crisis affected its Supply chain, especially the relationships with the customers (CRM)

and suppliers relationship management?

Answer 1

With hundreds dead, the popular 737 Max jet remains grounded as investigators examine how an automated system on the planes contributed to the crashes.
n response, all Max flights were grounded around the world, and carriers like United don’t expect them to be flying again until January at the earliest. Some international regulators, including the Europeans and Chinese, are expected to take even longer to clear the Max to fly.
Aerospace suppliers who produce everything from engines to wings for the troubled Boeing 737 Max aircraft earnings were hit by the deepening Max crisis.
Several of the jet’s biggest suppliers explained how the grounding of the 737 Max was affecting their company finances. Smaller companies in the supply chain were forced to lay thier off workers. More than 600 smaller companies workers in the supply chain were laid off as a result of the decision
Spirit AeroSystems, the largest 737 Max supplier, producing 70 per cent of the plane’s aerostructure, pulled it 2019 financial guidance, saying previous guidance was no longer valid because of uncertainties over when the Max would return to full production.
Boeing cut production of the plane in mid-April from 52 per month to 42, and earlier plans to expand to 57 a month by midyear had been put on hold.
Safran, which has a joint venture with General Electric that produces engines for the Max, said it continues to catch up on earlier production delays and so has not yet been affected by the decline in output. But if it continued, it would expect a €200m hit in the next quarter.

With little ability to predict how long the production will be shut down, suppliers such as Spirit AeroSystems, which builds the Max’s fuselage in Wichita and ships them across the country to Washington state, face a difficult decision. Those suppliers can either keep employees on staff indefinitely, in the hope that Boeing’s production lines will resume quickly, or furlough employees.” Tough situation & high business impact.

Boeing’s decision to suspend production temporarily of its 737 Max airliner has hit the shares of UK and European suppliers to the US group.
Its forecasts were based on the Max being back in the air by the end of this year. The timetable for when regulators will allow the 737 Max, which was grounded after two fatal crashes, to return to service remains unclear.
The Hertfordshire-based company, which makes sensors and other high-tech components for equipment manufacturers in the aerospace, defence and power sectors, said on Tuesday that it will provide a further update on “the potential implications to its 2020 performance once it has clarification from its customers”. Shares in a rival UK supplier Meggitt fell almost 2 per cent. The company said in November that margins would be “constrained” by the Max grounding, and would be towards the lower end of the 17.7 per cent to 18.2 per cent it had forecast.
Boeing’s 737 Max supply chain also runs through a range of smaller suppliers in the UK. Relative minnows like Aeromet International, a Worcester-based supplier of advanced aluminium cast parts, and Maher, a Sheffield steel machinist, have also done work on the 737 Max.
Airlines have already been forced to delay their plans to return the Max to their fleets until March, a year after the second of two fatal crashes that killed 346 and forced the grounding of the fleet.
On the other side:
Europe’s Airbus, Boeing’s major rival, was one of the index’s few risers, with a gain of 0.5 per cent.