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The Core Challenges Aerospace Supply Chains Face

Assembling an aircraft is a complex, if not monumental undertaking. It involves thousands of workers, hundreds of hardware manufacturers and suppliers, and millions of parts. Case-in-point, the Airbus A350 – the world’s most advanced passenger aircraft.

Although the aircraft is assembled in Toulouse, France, parts come from over 4,000 suppliers across various countries: the fuselage from Spain, the tail section from Germany, and the wings from Britain. Getting all parts to arrive on time and in top shape is not a mean feat. A stall in any of the supply chains can affect the production of the aircraft.

The complexity of aerospace supply chains has not only led to more difficulties but has also created more margins for error. In this post, we’ll summarize the core challenges aerospace supply chains face and provide ideas of what aerospace companies can do.

Procurement of Raw Materials

Aircraft require several million parts to manufacture. For instance, the Airbus A350 we spoke of earlier requires 2.5 million components, from large parts like aluminium to small parts like fasteners.

Metals like chromium, magnanesse, copper, stainless steel, titanium, nickel, copper have been content features of aerospace engineering over the years.

Non-metallic components such as plastics, textiles, chemicals and rubber are also vital for production. But since the turn of the century, there’s been a push towards composite materials. Ceramic matrix composites (CMC’s) which consist of a ceramic matrix reinforced by a refractory fiber are becoming increasingly popular.

Because these materials are sourced from different manufacturers and suppliers across several locations, there are often procurement difficulties. It can be hard to ensure quality when dealing with so many parts.

From inconsistent weather to changes in international trade regulations, various factors can hamper a supply chain for raw materials. An example is when former President Donald Trump issued the Executive Order 13810 prohibiting American organizations from doing business with North Korea, affecting supply chain manufacturers who transact business in or through the country. 

Aerospace supply chain managers have to develop long-term partnerships with suppliers in the aerospace supply chain. They must choose companies who have a broader reach across several countries. That way, supply chain risks are significantly reduced.

Supply Chain Delivery Risks

Aerospace supply managers always face the risk of suppliers being insufficient or little due to factors that include price price predictions, political turmoils, false prediction of future demand, design modifications, natural disasters and many more.

To manage supply chain disruptions, supply managers can either adopt a short run approach that deals with monthly, quarterly and yearly acquisitions, which are usually conducted as spot purchases. Alternatively, they can adopt a long run approach by sealing long term contracts that span over a period of 5-10 years with their principal and subsidiary suppliers.

Aerospace supply managers should also endeavour to form long lasting relationships with their suppliers. Organizations need to work in close cooperation with supplies when revising cost controllers and market changes to lessen supply delivery risks.

They should also be aware of the supply overview of suppliers and be inclined towards manufacturing projects such as vector managed inventory. This would enable them to revise present and future demands and also find substitutes for materials.

Modernization and Evolving Technologies

The aerospace industry is seemingly fighting a losing battle to cope with modern technologies like robotics, artificial intelligence, standardization and automation. An example is when software jams and wiring complications caused a hold up in the production of the Airbus A400M military transporter and the Airbus A380 superjumbo.

In some cases, software jams were identified before any damage was done, as in the case of Pratt & Whitney who spent 20 years and a fortune creating its groundbreaking turbofan engines only to have to make further modifications to the combustor before the completion of the project.

In some cases, failed technology has led to gruesome repercussions. An example is the Lion Air Flight 610 and Ethiopian Airlines Flight 302, resulting in a total of 346 deaths. You can read all about it here.

The above events demonstrate the need to harmonize human knowledge and new trends of technology thereby reducing the over reliance on machinery.

Inadequate Skilled Personnel

As demand hightens in the aerospace industry, there is a shortage of experts in emerging areas. Due to the lengthy nature of training, there is a limited range of skills to perform complex tasks, making it difficult for manufacturers to launch new projects.

Although the growth of the industry will only continue to revolve around technological developments, aerospace organizations must equally commit to developing its human resource as well.

Personnel must be equipped with the knowledge of new innovative technologies defining the industry, such as blockchain, 3D printing, machine learning, and smart automation. Take a look at how 3D printing has increased in the aerospace industry over time:

Source

While training personnel in various fields may be expensive, the returns make it worthwhile. Aerospace industries should invest in training and hiring experts to ensure quality performance at all levels.

Storage of Large Equipment

Parts and components of an aircraft come in different shapes and sizes. Finding a suitable area for large and weighty equipment is no walk in the park. A lot of aerospace organizations struggle to find a storage area for their equipment.

Aerospace companies are responding by building facilities in several locations across the world. For instance, as mentioned earlier, Airbus has facilities in Spain, Germany, France and Britain. Aerospace companies must strive to build bigger facilities, particularly in areas that handle final assembly.

Of course, a lot of consideration goes into selecting a location, but ultimately it should be based on presence of raw materials, skilled labour, transportation infrastructure, and other key factors.

As much as the Ground Equipment Experts do their best to maintain and support aircraft systems on the ground, manufacturers need to invest in the necessary tools and equipment to get the job done.

Looking Forward

While COVID-19 has slowed down the work of many airlines, the industry is gradually making a comeback. With the increased distribution of the vaccine, more people are likely to begin traveling again. Even through the pandemic, airline manufacturers were still productive. For instance, Airbus and Boeing still managed to complete a combined 723 commercial deliveries.

From difficulties with procuring raw materials, supply chain delivery risks, to inadequate skilled personnel, aerospace supply chains still face significant challenges. But it’s not all doom and gloom. With innovation, dedication, comprehensive strategies, and partnerships, aerospace companies can combat these challenges and make giant strides.