Aerospace Supply Chains: Challenges and Solutions 

Despite the suffering the aerospace industry experienced at the hands of the pandemic, there is optimism within the sector for the future. Although many consider the COVID-19 pandemic to be behind them, aerospace supply chains are still recovering, and aerospace is one industry among the many that are still struggling to return to their previous position. Key players in the industry expect another four or five months of uncertainty, especially as China – a key player in the majority of supply chains – is still experiencing lockdowns and uncertainties. This, in turn, makes many aerospace supply chains far less stable than the industry would hope. 

As the industry rebounds, the aerospace supply chain is under significant pressure to deliver. Airbus and Boeing are both increasing aircraft production, therefore aerospace supply chains need to keep up; by 2024 Airbus are working on increasing their A320 production rate to 70-75 aircraft per month, compared to the 45 per month towards the end of 2021. This steep rise in production increases pressure put on aerospace logistics. Guillaume Faury – Airbus CEO – said of aircraft production: ‘[it’s] the heart of our priorities’. Faury did also acknowledge the difficulties with aerospace supply chains: ‘We see difficulties with raw materials, with logistics […] across the globe’. 

Aerospace supply chain and logistics issues are interconnected, and by solving one you can solve the other. Finding a trusted, reliable and efficient Time Critical logistics partner to help your business through issues can alleviate a number of challenges, one of which is certainly supply chain problems. Aerospace supply chains rely heavily on Time Critical delivery, so a Time Critical logistics partner that can provide this service is also crucial. Royale International is one such logistics company, and they specialise in Time Critical logistics and the aerospace industry. With 25+ years’ experience working within aerospace supply chains and logistics, their Time Critical service is trusted by countless aerospace businesses. 

There are many challenges within aerospace supply chains, and through effective, Time Critical logistics, many of these problems can be alleviated and overcome. 

Challenge 1: Supply chain management 

Managing supply chains is always difficult. When it comes to aerospace supply chains this is even more the case, due to their complexity. There are many different suppliers who make up the aerospace supply chain, and they all play a key part in keeping aircraft businesses and manufacturers operational. Because of this, it is essential that the supply chain continues to run smoothly and operate correctly. 

Royale International has years of experience working with aerospace companies. They understand the way the industry operates, their needs and how essential it is to keep supply chains running. Their supply chain management is unparalleled, and their flexibility and adaptability ensure that they are able to manage aerospace supply chains effectively, without hold-ups or breakdowns.  

Challenge 2: Labour numbers 

The slump in orders caused by the pandemic, meant that many companies reduced their staff numbers to reflect the demand, and ultimately save costs. With the upswing in aerospace supply chains, suppliers are quickly attempting to increase their staff numbers to meet the growing demand from aerospace companies. This, however, is proving to be difficult, therefore suppliers are limited in their production capacity capabilities.  

By partnering with a Time Critical logistics provider like Royale International, low staff numbers across supplier companies won’t cause disruption to aerospace supply chains. Royale, with such a widespread global network, can fill the gap. Either the same aerospace items or components can be acquired from different suppliers around the world while companies’ outputs are significantly reduced, or a company with a better workforce situation can be found. With logistics providers like Royale International, geography is not an issue; their global network makes the sourcing of parts from anywhere in the world an easy task. 

Challenge 3: Build-up of finished goods inventory 

The coronavirus seemed to become a global pandemic at an incredibly rapid rate, therefore the slump in aerospace manufacturing was unforeseen. This means that many businesses have ‘inventory overhang’ that they have had to store and may no longer require as the aerospace industry evolves. Looking ahead to the expected increase in production in the coming years, businesses cannot afford to stock up on inventory they may not need, use, or require, and will also have to store. 

Royale International has had many years’ experience working within aerospace, and therefore understands the industry well. More and more businesses (especially in the post-pandemic climate) are opting to not have a large amount of inventory on hand, opting instead to order as needed. In aerospace supply chains, deliveries are time sensitive, so Royale International’s Time Critical deliveries can help. By opting for Time Critical shipping, businesses can ensure they are getting the aerospace items and components they need, when they need them. Saving money and space by not having an unnecessary stock of parts is essential for businesses and can be easily managed with Time Critical logistics from Royale International.  

Challenge 4: Expanded lead times 

Lack of labour has also impacted lead times rather significantly. The ’quick pivot to a high demand scenario’ has somewhat rocked suppliers and the aerospace supply chain has experienced the impact. Lead times, as a result have ‘expanded significantly’.  

Aerospace businesses who choose to partner with Royale International have the ability, once again through Time Critical delivery, to shorten their lead times substantially. Royale has strong relationships with suppliers, and a thorough understanding of the aerospace sector which also helps alleviate lead times for particular aerospace parts and components. 

There is no doubt that aerospace supply chains are experiencing many challenges. This is due in part to their complexity, the changing landscape of air travel, and the post-pandemic ‘new normal’, but there are also solutions to all the problems. One of the key solutions is a reliable, experienced and efficient logistics partner. Logistics is more important than ever for aerospace businesses, and Royale International is an obvious choice. With experience in the industry, the ability to provide exceptional Time Critical service and a highly rated reputation, they are the best partner for any aerospace business looking to overcome supply chain challenges: https://www.royaleinternational.com/services/time-critical-services/