The company's engineers not only participate in choosing the main partners, but also may end up working at partner locations. "We've dropped engineers right into the process of the build," says Grant Barber, executive vice president and CFO. "That is done to reduce risk, and to make sure that we know the timing and capabilities of our offering." The company regularly monitors its partners' project milestones, a process that includes a series of pass/fail qualifications and reviews, not to mention cash payments based on performance.
While Hughes builds many of the components that are part of the ground infrastructure, it "does a very good job of having dual suppliers for most of our critical components," Barber says. The primary contractors that build the satellites have double and even triple redundancies for key parts.
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Keywords: Sourcing & Procurement Solutions, Supplier Relationship Management, Technology, Supply Chain Security & Risk Mgmt, Supply Chain Analysis & Consulting, Global Supply Chain Management, High-Tech/Electronics, Supplier Performance Milestones, Supplier Redundancy
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