Companies that operate in the aerospace supply chain have been subject to unrelenting pressure over the past few years to fulfill orders despite being under-resourced.
Specifically, the supply chain backlog from the past 2-3 years has affected the availability of raw materials. However, the demand for aerospace production output has remained the same, as many companies responsible for aircraft assembly have multi-year, high-volume contracts that are not affected by supply chain market conditions.
We get it. You still have to meet output commitments regardless of input struggles. While the backlog is improving, the procurement of goods and transportation slowdowns are still significant factors contributing to some of today’s top aerospace supply chain challenges.
Fortunately, there are solutions to minimize the effects of disruption and help companies regain some semblance of control over their production schedules. Let’s dive into how to solve these challenges.
Why Are Production Schedules So Challenging Right Now?
We are fortunate to work directly with many aerospace companies that depend on a solid supply chain. Any weak links could cause damaging problems, such as creating issues with production schedules.
The ability to procure the materials needed for each job and have them available for assembly in time to meet program demands is crucial for successfully executing each customer’s order.
We wanted to understand better what’s happening in the industry. So, we surveyed some of our top aerospace customers to capture the most significant supply chain issues affecting production capabilities. Here are the Top 5 issues:
- #1: Controlling Inventory (62% indicated this as an issue).
- #2: Increased Freight Spend (46%).
- #3: Managing Warehouse Space (42%).
- #4: Too Many Tracking Portals (42%).
- #5: Outdated Tracking Methods (42%).
Suppose you combine a lack of inventory control, increased freight spend, insufficient space to manage inventory in the warehouse, and inefficiencies in tracking the movement of shipments. In that case, you get a clear picture of why companies struggle to stay on track with production schedules. Fortunately, there are ways to change the picture!
Solutions for Today’s Aerospace Supply Chain Challenges
We will make three recommendations for addressing today’s supply chain challenges in the aerospace industry.
1. Optimize Communication
Many parties need to know the same information. And, if your company is working with hundreds of suppliers and vendors, the communication can quickly get out of control.
Unnecessary communication can cause a high volume of emails and phone calls in all directions, which can not only be inefficient and stressful, but information can often be outdated by the time it reaches an intended party.
Our solution is to simplify and streamline communication. At CloudLogix, our mission is to eliminate communication waste. We recommend utilizing our CloudLogix supply chain platform to serve as your central communication hub. You can use the platform to bring all communication into one location so that each party can view relevant information in real time.
2. Integrate Everything You Can
Disjointed systems and processes have become the status quo for many companies. However, there are so many options available now to allow systems to communicate with each other.
Focusing on integrations helps everyone in your supply chain find what they need quickly to avoid issues and support or correct issues in real time – not well after the fact.
There are also many long-term benefits to this effort, such as making the onboarding process much easier for new members of the team since there would be much simpler methods to teach.
Client relationships are also strengthened. They will receive the information they expect and will be satisfied knowing that your company honors its commitments.
3. Leverage Expertise
As busy as everyone is these days, take the time to consult with others on the best way to optimize your supply chain.
Many people within your organization can provide input on the specific challenges your company is facing and offer potential solutions. You should also consider tapping into the perspectives of other peers in your industry. Don’t hesitate to talk to companies you hear about who offer solutions.
If you hear about a podcast that covers supply chain challenges or if you receive a sales email offering to schedule a discovery call, lean into it! It never hurts to learn more, and you just might find the perfect solution for your company that you didn’t know you needed.
How the CloudLogix Team Supports the Aerospace Supply Chain
Our team of supply chain logistics experts are ready to come alongside your company to identify specific solutions. If you are concerned about today’s aerospace supply chain challenges affecting your production schedules, then let’s talk.
Our focus will be to find ways to increase visibility throughout your supply chain. Visibility is so critical. By having a clear picture of what’s expected to come in and what’s in transit to your facility, you can plan accordingly.
You can also get the earliest possible heads up when it comes to a delay so you can try to make adjustments to meet schedules and program requirements.
Plus, through our platform, CloudLogix can connect all relevant parties to achieve the cohesive overall picture you need to make smart planning decisions. You don’t have to go at it alone trying to satisfy production schedules with limited resources.
Contact us today to schedule a consultation with our team. Let’s get to work implementing solutions that fit your need!
