Vendor is a part supplier. Like a rivet or a panel or a bolt or a window, etc, etc, etc.....

The OUTSOURCING we are talking about here is more functions such as installing parts from vendors. This means that the vendor is getting the parts and trying to assemble them and then send a larger sub-assembly to Boeing. It isn't working. See the difference? No, of course you don't.

This happens in many industries. This is when the supplier says "Yes, we can do that" and signs a contract and then guess what "No they can't do that". This happens often. Auto industry pulls work away from suppliers because they fail to get the "outsourced" job done. The Aircraft industry and others have the same problem.

But at the end of the day, this thread is getting stale. After the 787 fly's you will say, "See, outsourcing worked!!!!" while the rest of the world will be saying "Boeing would have had the thing up 2 years ago but for the outsourcing......."