Aerospace Supply Chain Management

Challenges in the Aerospace Industry

From Brexit and air travel disruptions, the market has had a lot of fluctuation and volatility in recent times. This naturally impacts the supply chain from top to bottom.

30% drop in aerospace orderbooks

In June 2020, UK air travel reduced by 97%, due to the pandemic, which caused a loss in revenue of around £20 billion in that year. The pandemic had a significant knock-on effect on the aerospace supply chain as a whole. Airbus, for example, which plays a major role in the success of the UK aerospace sector, in 2020 saw its order book decline by 30%. This impacted jobs within the company and SMEs throughout their supply chain.

Rising export tariffs

Due to Brexit, manufacturers must also protect themselves against the rising trade tariff costs. Outsourcing manufacturing overseas has remained an enticing endeavour because of competitively priced economies found elsewhere. However, the priced advantage that attracted businesses only a decade ago has progressively evened itself out with rising wages in low-cost economies, increasing home consumer market and substantial freight charge increases.

Adapting to net-zero

The UK government has set a target to reach net-zero emissions in domestic aviation by 2040, along with all English airport operations to be zero-emission. They are also committed to achieving net-zero carbon emissions by 2050 and boosting the development of sustainable aviation fuel (SAF), or biojet. This means a big change to supplier sourcing initiatives and supply chain development.

Why Valuechain for Aerospace Supply Chain Management?

A strong and agile supply chain is what lies at the centre of any organisation’s success within this sector. Aerospace supply chains are complex. There’s detailed data and a requirement for a solid strategy. In recent years, the industry has seen many setbacks on a global scale, so it’s more important than ever before to have a resilient  supply chain. This is where Valuechain can help…

Cross-sector collaboration

As an overarching solution, Valuechain facilities preparedness, ultimately protecting companies against unexpected or rising costs. It helps customers to analyse spending across suppliers by providing a platform that links with ERP systems. You can get access to real-time spend analysis, which allows you to identify the areas where you are spending more and measure whether or not costs are rising. Additionally, Valuechain helps to identify local suppliers with the right capabilities to meet your needs, to dissolve the reliance on overseas imports. Our Network Portal platform facilitates cross-sector collaboration, helping manufacturers reach new markets, and in turn, can accelerate recovery from impacts such as the pandemic.

Increasing visibility for suppliers

Valuechain’s solution also helps to reach and work towards shared goals, such as net-zero innovations within supply chain. Through diagnostic tools and regular maintenance of profiles, you can identify companies already in your supply chain that are developing these options. By using the intelligent search function, users can also find companies working with new fuel types and net-zero innovations from outside of your supply chain. The dynamic B2B networking platform encourages users to regularly update profiles, sharing capabilities, approvals and operational KPIs, so you can find the ideal partner for innovation.

Manage Supplier Quality, Cost & Delivery Performance

Gain tighter control over your supply chain QCD performance with our Supplier Portal. Linking with your ERP/MRP system, you can visualise supplier’s Order Book status, OTIF, PPM, NCRs and Spend performance so you can easily identify and mitigate issues in your supply chain. The collaborative portal shares KPIs with each relevant supplier, so you can work together to improve performance and mitigate risks

How can Valuechain help with your aerospace supply chain management?​