Pity the poor Boeing team behind development of the 787 Dreamliner. On Friday, 11 January, the US Federal Aviation Administration (FAA) launched a full investigation of the plane's design, manufacture and assembly. In a way, the agency had to do that.

In theory, risk management seems such a simple concept. When discussed in the abstract, it lends itself to all sorts of platitudinal phrases, like “pre-planning,” whatever that means. But when a risk turns into an actual event, the platitudes become imperatives, and how well you and your suppliers planned beforehand and respond can determine the survival of your business. American Airlines’ actions before and during the recent Hurricane Sandy provide a great role model for how exceptional supplier relationship management can turn risk-management theory into practice.

Bankruptcies may be examples of the “creative destruction” that rejuvenates capitalistic economies, as some say, but they are nevertheless unpleasant affairs for lenders, employees, and suppliers. They also can be learning experiences. For procurement, one of the lessons is the importance of supplier relationship management and the American Airlines bankruptcy is a case in point.

If you’re starving for some excitement, but you don’t have the money or time to go skydiving, rock climbing, or para-gliding, and you’re not really keen on mixed martial arts, there is an alternative for you: Walk into any room with two or more people and mention the words, “environmental regulation.” Then stand back.

For anyone wondering how big a role procurement can and should play in an organization, the recent news of the deal that American Airlines struck with long-time supplier Boeing and with Airbus offers important insight. It’s no exaggeration to say that this deal, reportedly the largest in aviation history, would never have seen the light of day without the involvement of a first-class procurement team working in close concert with other C-level staff, including the CEO, the president, and executives from treasury and corporate planning.

Many procurement executives may have nodded their heads in agreement last week as a new study released by IFS North America revealed that enterprise software such as supply chain management applications are overly complex. “No kidding,” they might have said, as they returned to their computer screens to try to access data and make some sense of it. There are other studies that show that engineers use only a small fraction of the capabilities of their design and analysis software, partly because of the complexity, and I suspect the same is true of procurement.

“Hit ‘em where they ain’t” - That was the advice the legendary US baseball player Wee Willie Keeler reportedly gave to his teammates who wanted to hit the ball past the fielders as Wee Willie did. If the fielders lined up to the left, Wee Willie would hit to the right. If they lined up on the right, he would hit to the left. And that, he said, was how he managed to have one of the highest batting averages in the sport back in the early 1900s.

A few weeks ago I blogged about counterfeit parts circulating in the supply chain and what to do about them. But counterfeit parts--often poor copies of standard parts that are manufactured by rogue companies and destined to eventually fail--aren’t the only kind that can give procurement executives headaches. Sometimes, parts from established manufacturers that have apparently passed required tests can be faulty too.

The US-based Aerospace Industries Association (AIA) reported recently that there has been an increase in counterfeit parts circulating in the electronics supply chain. In fact, says the trade association that represents major aerospace and defence manufacturers, in fiscal 2009 US Customs and Border Protection officials seized nearly $4m worth of counterfeit critical electronic components that the industry buys and uses. If that’s how much they seized, just imagine how many counterfeit parts they missed.

Sustainability continues to muscle its way into the pantheon of business imperatives. Procurement Leaders reported on two of the latest examples last week: BT’s charge to procurement to cut carbon dioxide emissions; and the Procurement Intelligence Unit’s CPO Strategy Survey 2011, where respondents listed sustainability as one of the dominant megatrends that will underpin procurement activity.