Supply Chain Challenges Aviation Companies Need to Prepare

Posted on November 27, 2019 james smith aviation

The Aerospace & Defense (A&D) industry is currently experiencing a boom, and while growth is indicative of a thriving and successful market, it does bring about its own set of challenges. Growth, coupled with new technologies, continued consolidation, and emerging markets, can create newer problems and disruptions in supply chain. If A&D companies wish to continue seeing growth, then they must be able to adapt to such disruptions and develop preparative measures on working through them.

Disruptions in an aviation company’s supply chain process is not something to be taken lightly. If there is a disruption in the process, it can not only put a halt to business for both the client and suppliers, but it can equate to millions of dollars in losses. Disturbances in the process are, however, an inevitability, so it truly pays to be prepared. Here are just some examples of disruptions that you can anticipate.

1. Inventory Management

Inventory management is crucial to the supply chain process, and if a company hasn’t got total control and understanding of their inventory, then they will feel the consequences. The best way to manage inventory of manufacturer and prevent having too little or too much is through predictive analysis. Predictive analysis relies on data analytics to predict demand and can be used to help companies understand when they should stock up on supplies or reduce production on others. Too many supplies can result in having an excess of antiquated parts that become obsolete with new technologies, while too little inventory can result in delays in high expedited shipping costs.

2. Changes in Geopolitical and Environmental Climates

A successful supply chain company will anticipate ripples in the environmental and geopolitical climate of locations significant to them, including the areas where they have manufacturing warehouses or locations where they are to supply items. Such disruptions can include natural disasters such as fires, earthquakes, tsunamis and other phenomena that can affect supply. They can also include political and economic unrest that can result in labor strikes, or regulations that can halt supply and delivery. In this case, simply being aware of an area’s climate while also being cognizant of supply portfolio can greatly help mitigate disruptions.

3. Demanding Customer Base and Supplier Health

In this thriving market comes a rise in competitors who offer diverse choices for customers. With more competition comes a higher and more diverse demand from customers. A&D supply chain companies must recognize this reality and work to prepare for such demand by being on top of trends and being familiar with what competitors are offering. Additionally, they must also be cognizant of their on health and work to mitigate any issues (e.g., financial strain, reputation, etc.) that can disrupt their own supply chain process. For more information on A&D supply chain and the options offered, consult experts at Aviation Sourcing Solutions, the online distributor of hard to find aviation parts and MRO support services.

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