Page 44 - Flip PDF Test - Client Book - Senior Director Supply Chain

C A N D I D A T E I N F O R M A T I O N

NAME: JOHN AVERY

DATE: 8/6/16

POSITION/COMPANY: BOEING COMMERCIAL AIRPLANES/PROCUREMENT AGENT, SUPPLIER MANAGEMENT -
STRUCTURES

PHONE NUMBERS: 425-212-7833

COMPENSATION:

What is your current responsibility and where are you situated in the organization? To whom do you report and
who reports to you?

I am a Procurement Agent in Boeing Commercial Airplanes (BCA) Supplier Management Aircraft Material &
Structures organization. I am currently responsible for the negotiations, contracting, and administration of multiple
work statements, including but not limited to: 787 Passenger Doors, 787 Aft Pressure Bulkhead, 787 Spoilers, 787-
9/-10 Horizontal Stabilizer Panels, 777 Freighter Main Deck Cargo Door, 787-9/-10 T-Chords, and other 787 metallic
assembly parts. These work statements have a combined contract value in excess of $1.8 billion. My specific group is
responsible for suppliers in Europe that have structures work statements across all commercial programs (including
the P-8A/I, which is a military version of the 737). I report directly to Marc Grotle, and we all ultimately report to
Kent Fisher, who is the VP/GM of BCA Supply Chain Management & Operations. I have no direct reports, but I do act
as a lead Agent on my team for competitive bids, negotiations, and contracting activities. I also mentor four
employees.

How deep is your Supply Chain experience? Have you functioned as the lead supply chain officer in a division or a
company? If so, what functions were your responsibilities? Have you ever created a supply chain process?

I have five years of experience directly managing suppliers in the aerospace industry. I have not been the lead
supply chain officer in a division or a company, but working at a company the size of Boeing has given me both
breadth and depth in supply chain, as I’ve negotiated more than 100 deals, ranging in size from $10,000 to
$250,000,000. I have created a supply chain process for suppliers that have what Boeing calls “Life of Program”
contracts. These contracts, which are most often found on the 787 Program, give the supplier rights to all
requirements for their work statements through the production life of the 787. These contracts were originally
negotiated with the intention of stabilizing program costs long-term. In reality, though, most of these contracts
were not priced long-term. Many contracts only had temporary pricing that covered a small number of aircraft. I
worked with one such supplier, so in an effort to reduce cost I challenged the thinking and even the legal
interpretation behind Life of Program contracts that were not priced long-term. I released competitive bids for
several of the supplier’s work statements, and the results of the competitive bids showed that the supplier’s pricing
was uncompetitive. I negotiated the transfer of these work statements to more competitive suppliers. I also worked
with engineers to change both material and process specifications to enable further cost reduction. These efforts
resulted in risk reduction and forecast savings of more than $450 million through 2024. Perhaps more importantly,
this process was implemented on another Life of Program supplier, which resulted in an additional $500M in risk
reduction and forecast savings. This process, and others like it, has been rolled out at a division level in part because
of the success shown with these suppliers.
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