The global nature of today’s supply chains makes things easier for many businesses, especially in terms of cost reduction. Global supply chains open up the ability for larger companies to acquire a variety of manufacturing components for far less, thus saving money, and in turn increasing their margin. It is also true, however, that global supply chains have a certain number of significant vulnerabilities. Events – such as natural disasters, warfare and unrest of any kind – create instability, which can have far-reaching consequences. The Russia-Ukraine war is a prime example of this and, as such, is having an impact on many industries worldwide. These consequences, no matter where they occur can (and do) put global supply chains at risk.
While it is true that global supply chains have plenty of benefits, recent events prove that these benefits inevitably go hand in hand with significant risks. Mitigating these risks has become essential for aerospace companies, and many factors, including supply chain flexibility, company evolution, and reliable and Time Critical logistics are potential solutions.
The nature of aerospace supply chains
One of the most complex and detailed supply chains is that of the aerospace industry. As with many sectors, it will not be unaffected by the conflict in Ukraine. Boeing, for instance, relies on much raw material which is sourced from Eastern Europe and Russia, namely titanium. Approximately 33% of Boeing’s titanium comes from Russia, and within the last 20 years, Boeing has forged strategic partnerships with Russian and Ukrainian businesses around aircraft manufacture.
Current global events are having a significant impact on global supply chains. Aircraft manufacturing businesses – as is the case for many sectors – rely completely on their supply chains, as they source parts and components from around the world. All manufacturers’ aerospace supply chains, as they grow to become more and more global, can be broken down by region. One specific example of a well-known aircraft manufacturer shows a global supplier breakdown of 69% Western Europe; 20% North America; 7% Asia Pacific, with Eastern Europe, South America and others making up the remainder. While this example is heavily reliant upon European companies, aircraft manufacturing takes place across the globe.. A cross section such as this shows how crucial aerospace supply chain logistics are for all aerospace manufacturing companies.
The importance of logistics in risk mitigation
It is true, no matter the breakdown of supplier locations, that global uncertainty leaves aerospace business’ supply chains vulnerable to significant risk. Yes, pandemics, natural disasters and unavoidable events have a big impact, but they also serve to show the importance of Time Critical logistics for all aerospace supply chains. With improved logistics, businesses can work with logistics providers, and together successfully navigate the landscape and simplify the supply chains.
There are a number of ways logistics partnerships can help alleviate the risks associated with aerospace supply chains:
1.The Necessity of a Time Critical Service
Time Critical ordering is an essential component of modern aerospace supply chains. By partnering with a logistics company who can offer experience providing Time Critical deliveries, aerospace companies ensure they are getting what they need, when they need it. When operating a complex supply chain, such as those of aerospace companies, Time Critical service is essential, as the manufacturing industry runs on a tight schedule, and forward planning is a must. Partnering with a Time Critical logistics company who understands the ways of the industry, and the Time Critical nature of aerospace supply chains, is critical.
2.Working with one Time Critical logistics provider
The more complex a supply chain, the more susceptible it will be to breakdowns and hold-ups. The risks increase when different suppliers are using different companies, and the number of people relied upon grows. Streamlining your supply chain, and ensuring all companies you work with partner up with the same logistics company who can offer Time Critical deliveries can not only simplify the entire process, but eliminate the risk factor that aerospace supply chains face.
Strategic sourcing is something that needs to be seriously considered by businesses due to the risks associated with aerospace supply chains. Companies need to make sure that they have both the right strategy in place to source regionally if necessary, and strong logistics support to ensure Time Critical shipments can be made.
4.Choosing the right Time Critical logistics partner
With the aerospace industry evolving and adapting to meet current and future market and global trends, it is of crucial importance that businesses choose the Time Critical logistics partner that is the best for them. Aerospace supply chains depend upon Time Critical logistics in order to keep manufacturing moving forward and avoid hold-ups or breakdowns. There are other aspects to consider when creating a partnership. What experience, for instance, does this company have working within the aerospace industry? Will they be able to provide a dedicated, global service that will be able to guarantee supply chain stability? By answering these questions, you can ensure your partnership is mutually beneficial.
5.Looking ahead to ensure risks are avoided
The years 2020 and 2021 were challenging due to reductions in demand and production. But 2022 presents new hurdles, including the aftermath of the pandemic still being felt in many countries, together with the sanctions against Russia. While some risks are more significant than others, they never completely disappear. Therefore, dealing with them as well as possible is what businesses can strive for.
Strategic sourcing and supply chain leaders have been discussing global supply chain risks for years, and thus companies and businesses must ensure they have the appropriate regionalised supply chain strategy, as well as the right partnerships to secure their future and deliver supply chain resilience. (Learn more about Top Aerospace Technologies & Supply Chain Trends)
As highlighted above, a trusted Time Critical logistics partner is key in the reduction of aerospace supply chain risks. Royale International are one such company who can guarantee this assurance. With over 25 years’ experience working with and within the aerospace industry, they are well placed to deliver. Offering unrivalled Time Critical logistics solutions, Royale International have partnered with countless companies across the globe, and their knowledge and understanding of global supply chains and the risks associated are second to none. Find out more about the services Royale International can offer to help your business avoid the risks associated with global aerospace supply chains, learn more about our Time Critical services.