Airbus’s Supplier Portal: Changing a Business Paradigm

With procurement volume determining 75 to 80 per cent of costs, Airbus heavily depends on its supplier base of more than 1,000 key suppliers. In 2003, Airbus introduced the supplier portal eSupplyChain, which served as an electronic marketplace for all interactions with its suppliers. In 2008, this solution needs either large investments or total replacement in the near future due to various internal and external factors. As part of the BoostAeroSpace initiative, a project designed by the leading companies in the French and European aerospace and defence industries, Airbus decides to develop and introduce a new supplier portal: AirSupply. The case uses Airbus's decision to replace its previous supplier portal with AirSupply to illustrate the benefits and risks involved when introducing electronic marketplaces and the challenges in the future development of existing systems. Moreover, a qualitative perspective on pricing systems will enable readers to think about the financial aspects of electronic marketplaces that are offered in a software as a service (SaaS) model.