Supply Chain Management in Aerospace Industry

Rachet B.

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Supply Chain Management, Aerospace Industry

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Abstract

The uncertainty characterizing growth opportunities in the global economy mandates the aerospace organizations to shift focus towards improving their visibility in the supply chains. Contrary to serial identity implied by a chain, the reality in the aerospace today demonstrates a network of relationships geared towards complexity. Complexity arises from the interrelated
metrics upon which organizations must strike balance including product quality, first-pass yields,
on-time deliveries, manufacturing cost and yields from the invested capital (Tiwari, 2005). Particularly, with the present-day efforts to shift the industry from traditional vertical approaches to multi-stage operations, it is inevitable to avoid multiple challenges emerging in the supply chains. Further, the inclusion of aftermarket operations comprising maintenance, repair and overhaul (MRO) poses greater challenges for the organizations with less visibility and control over their supply chains (Behrens, 2010). Nevertheless, blending supportive climate and
collaborative relationships with vital stakeholders would arrest risk exposures; simultaneously
overcoming emerging challenges through superior operational transparency, and supply chain
visibility.

Challenges attributed to the complexity of supply chain arise from the fact that, organizations cannot manage what they cannot see. This results in risk exposures manifesting themselves through inefficient operations and acceleration of conflicting demands. Recently, the complexity facing supply chains exhibited itself through numerous delays shunting the delivery schedules of Boeing 787 and A380 from Airbus.

Introduction
Supply Chain Literature
Supply Chain Management (SCM) in Aerospace Industry
Challenges Affecting Supply Chain Management
Approaches Implemented to Improve Supply Chain Management
Improving the Supply Chain Structure
Conclusion and Recommendation

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[...] However, it is difficult for the companies if their supply chain management fails to offer solutions to challenges denying them to generate revenue at the same rate. For instance, few organizations can sustain increased customers' penalties and re-sourcing costs emerging at the fundamentals of the supply chain, thus eating into their margins. The existence of the sluggishness as the companies shift from mass manufacturing to allow production schedules based upon demand-led models lead to increased uncertainty on meeting customer requirements. [...]

[...] Therefore, rationalizing the supply chain likens to improving the corporate assets to consolidate the existing relationships. Airbus Power8 program gears towards transforming their competitiveness through SUPPLY CHAIN MANAGEMENT IN AEROSPACE INDUSTRY 14 cash savings, reducing the development cycle, and reshaping the company's supply base to ensure timely delivery and emphasize quality supplies (House of Commons , 2007). After learning of little synchronization of the supply chain between top-end stakeholders and lower tier operators, embracing information technologies, generate mutual alignment. Given that most commercial contracts include a penalty clause to avert late deliveries across the chain, adopting improvement programmes bridges disparity existing among role-players in the supply chain. [...]

[...] Retrieved January from http://www.myxchange.info/ReleaseNet2/support_files/bulletins/AerospaceNextFrontier. pdf Light, M. (2013). TIMCO Aviation Services. Retrieved January from http://industrytoday.com/article_view.asp?ArticleID=2565 MacDonnell, M., & Clegg, B. (2007). Designing a Support System for Aerospace Maintenance Supply Chains. Journal of Manufacturing Technology Management, 139-152. Mentzer, T. (2001). Supply Chain Management . California: SAGE. [...]

[...] Challenges Affecting Supply Chain Management Similar to the teenage development path, the aerospace industry is experiencing its growth spurt brewing anticipations for a traumatic phase. This emerges from the uncertainty surrounding decision makers as industrial leaders' wonder of the future of their supply chains. Particularly, they wonder if the chains will mature and shed the sullen nature, they have tolerated in the past. Although challenges glooming the supply chain arise from globalization and integration efforts in the network, poor management is to blame for imposing inappropriate discipline along the chain. [...]

[...] (2009). Management Control of Global Supply chains . Berlin : Lohmar Koln Eul . House of Commons . (2007). Recent developments with Airbus: Ninth Report of Session 200607. Great Britain Parliament , Trade andIndustry Committee. The Stationary House. Jones, R. (2011). Ontario Aerospace Industry Capabilities. Retrieved January from http://www.ontaero.org/Storage/24/2058_Ontario_Aerospace_Industry_Capabilities_Dire ctory_2010-11.pdf Kinaxis (2014). [...]

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