Five steps to digital transformation Manufacturers and suppliers in the aviation and aerospace industry are responsible for...Read More
Elemica’s Digital Supply Network for Aerospace and Defense connects, automates, and provides the visibility the Aerospace and Defense Supply Chain is now requiring across different tiers of suppliers; original equipment manufacturers (OEMs); maintenance, repair and overhaul (MRO) providers; and customers, including airliners and armed forces. Connected supply chains drive enterprise-wide agility in response to real-time regulation changes, mitigates risk of quality issues, allows A&D players to leverage maximum possible advantages of the existing supplier base and controls cost.
Supply Chain Challenges
Today’s aerospace supply chain is complex, global, and more vulnerable than ever. In the capital-intensive aviation industry, an agile and resilient supply chain, aside from efficient production processes, merits the highest level of attention. The industry has an incredibly diverse and complex ecosystem of different tiers of suppliers; original equipment manufacturers (OEMs); maintenance, repair and overhaul (MRO) providers; and customers, including airliners and armed forces.
This complexity of trading partners also comes with an entire ecosystem of data. Effective supply chain strategies not only help companies improve efficiency, control costs and mitigate risks, but also enable them to deliver value to the customers.
Sourcing of Raw Materials
Metals, such as steel, aluminum, titanium, copper, magnesium, manganese, nickel, chromium, and many others, are the primary materials used for the manufacture of aerospace and defense products. No one country has a monopoly of the supply of these metals because the markets are widely distributed in different regions around the globe. Their timely delivery depends on their geophysical location and with qualities that meet the requirements of aircraft manufacturing. Non-metal raw materials, such as wood, plastics, rubber, textile, and chemicals, are also critical components that need the attention of procurement managers. Procurement managers are faced with the decision of managing suppliers based on clear-cut material specifications, costs, transportation modes, and delivery timelines.
Mitigating Supply Disruption Risks
There is always the risk of supply being constrained or limited due to incorrect prediction of future demand, inaccurate pricing projections, design change, and political disruptions or geo-environmental issues such as climate and natural disasters. Supply disruption can be mitigated with an approach of different buying behaviors and greater insights into supply chain visibility.
Understanding the supplier’s business is another important factor that helps aircraft companies forge long-term supplier relationships. Companies need to work closely with their suppliers in reviewing cost drivers and market trends to mitigate risks against inflation. Knowing the supply portfolio of suppliers is yet another essential aspect in raw material procurement that allows buyers to review current and future requirements, including raw material mix and availability of alternative materials and sources.
Connect Suppliers with a Leading Digital Supply Network
The Elemica Digital Supply Network platform enables A&D businesses to support their suppliers with a real-time information sharing environment to ensure an uninterrupted supply for critical parts in real time and with minimal waste. The relationship between OEMs and their suppliers go beyond buyer-supplier relationship to “being a part of the business,” giving rise to a new range of risk-and-revenue-sharing business models.
The Elemica platform and its supply chain network applications support the encryption and security levels needed within A&D supply chains to protect the necessary intellectual property, patents, trade secrets and know-how that is critical to obtaining and maintaining a global competitive advantage.
Managing the Supply Chain and Compliance to a Wide Range of Regulations
As OEMs ramp up production to deliver their large backlogs, suppliers across different levels in the supply chain are under pressure to deliver on time and maintain quality while keeping costs under control. They can depend on a Digital Supply Network from Elemica and the Elemica Quality Solution to meet performance specifications, quality standards and delivery schedules for products and services
In defense contracts, using Elemica BUY, contractors and their suppliers can comply with the multiple procurement regulations, and several mandates around information security, contract pricing, and project costs pertinent to their industry. Elemica can support the information needs across the supply chain to address the necessary configuration management audits and product integrity requirements whether it be from the As-Designed, As-Manufactured, As-Built, or As-Maintained status using lot and serial traceability and the Elemica Quality solution.
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