Introduction
Gulfstream Aerospace is one of leading corporate jet manufacturers in the world. They have been building jets since the late 50’s and continue to create top of the line aircraft which have become the status symbol of success. With their success comes an extensive company infrastructure and supply chain. First, we will discuss how Gulfstream uses the location to maximize the effectiveness of its supply chain. Then we will look at the business case for Gulfstream’s approach to its supply chain, and in particular, does it make sense to have a car follow supplies while it is on the rail system. Finally, we will look at Gulfstream’s to the “just in time” manufacturing and its strategic approach to choosing locations.
Location
Gulfstream has created over 1500 jets since 1958 when it was founded. During this time they have continued to refine its supply chain and now have it worked out to an art. One of its key concepts is the location of the supply chain. Gulfstream manufacturing headquarters is located in Savannah, GA, which is the first key to supply chain puzzle. Because of its location on the east coast it allows Gulfstream access to sea, air, and land. Gulfstream keeps cost low by contracting out the construction of certain parts of its aircraft and having them sent to Savannah. Gulfstream has suppliers in Holland, Germany, the U.S. and Mexico. The tail sections and floors of the Gulfstream G500 and G550 are made in Holland (Thuermer, 2004). These parts once assembled are then shipped to Amsterdam and then to U.S. to Savannah. For this reason, international shipping access is required. Once they arrive in the states, ...