Symbiotic supply chains

A total fulfilment model is one focused on delivering optimal total value for products and services. It is characterised by timely delivery of aerospace products, such as composite ply kits, components, parts or spooled materials. This model also requires suppliers to deliver significant added value in the way of: Quality and safety programmes; Seamless data exchange; Integrated demand planning; Logistics management; Materials management; Global and regional trade expertise.

When aircraft manufacturers can count on supply chain partners for this total fulfilment, they are better able to pilot their businesses successfully amid changing market demands.

Controls and compliance

Change, or pending change, is the order of the day lately for global trade. At the time of writing, Brexit’s future is still uncertain, leaving aerospace businesses to prepare for multiple scenarios. There is also uncertainty regarding trade and tariff conflicts between the United States and the European Union. While there have been record-setting orders for new planes being booked, the recent events with the 737 MAX, discontinuation of the A380 and delays with the 777X have caused uncertainty in the supply chain. So, despite changing trade laws and uncertainty, aerospace supply chains must find ways to deliver materials, parts, components and finished aircraft on time, on budget and to exacting quality specifications.

How can suppliers help? To best support their OEM and Tier 1 customers, they must proactively plan for: Classifying parts and materials correctly per evolving trade rules; Securing appropriate licenses as needed for post-Brexit trade; Sharing up-to-date information with trading partners.

Aerospace supply chain partners will need to consider dual-use items, such as parts with both commercial and defence applications. Today, some of these items may fall under a certain set of export guidelines to move between France and the UK, for example. But when Brexit occurs, they may fall under new regulations, potentially requiring a license to be imported into the UK from France or other EU countries.

Aircraft OEMs and tiered suppliers will want to work with supply chain partners who have a strong focus on export control and compliance. With such symbiotic relationships across the supply chain, there is no single focal point along the chain that can afford to fail. If materials are held up at a customs checkpoint, for instance, it can impact an entire aircraft programme.

Supply chain integration

Regulatory factors are not the only area of uncertainty facing aerospace manufacturers and their supply chains. They must also navigate fluctuations in demand caused by a high volume of new orders as well as programme delays and cancellations. There is a constant pressure to optimise open capacity and take out costs. The total fulfilment model again comes into play, as suppliers must be aware of all challenges and opportunities facing their customers and be ready to help on multiple fronts.

What role should suppliers play in alleviating some of these production and demand planning pressures? Integration is the key. When supply chain partners’ operations are tightly integrated with those of their customers, programme ramp fluctuations can be easily accommodated. For example, a materials formatter can take responsibility for materials inventory management so that an OEM or tiered supplier doesn’t get bogged down in the complexities of: Materials demand planning (ensuring the right materials are ready in the supply chain and avoiding write-offs due to obsolescence); Complete material traceability; Materials warehouse capacity; Transportation logistics to move materials and components between regional manufacturing facilities; Composite formatting, ply cutting and kitting.

The more non-value-added processes OEMs can outsource, the more resources they can focus on core competencies such as assembly, lightweighting initiatives and next-generation aircraft design. Also, when a supply chain partner specialises in certain areas, such as materials management and formatting, that supplier should be able to execute these capabilities with better quality, better value and less waste than its customer could do so in-house.

In this way, each link in the supply chain must be fully accountable for its contribution to overall aircraft quality and production efficiency. For example, a composite formatter should adhere to the following quality best practices to do its part to ensure the safety and security of the finished aircraft: Certification under AS/EN9100C and related standards; Laboratory testing and analysis to qualify materials; Visual inspection of all incoming materials; Foreign Object Debris (FOD) checks and controls throughout the manufacturing process, at every facility; Robust quality management systems; Automated out-time tracking systems for thermoset composites; Labelling and sequencing of individual plies in composite ply kits.

Supply chain innovation

Any discussion of aerospace supply chain partnerships would not be complete without mentioning the important role of industry consortiums. Organisations, such as the National Composites Centre provide opportunities for collaboration and aerospace innovation between supply chain partners. How does such activity fit within the total fulfilment model? When suppliers are involved early in the development of new technologies, they can devise strategies for how to better serve the market and be a strong link in the supply chain of the future.

Ultimately, today’s aerospace manufacturing industry has an incredibly symbiotic supply chain, one in which the expectations, actions and performance of every piece affects the whole. Rather than a transactional mindset, supply chain partners must embrace a more holistic total fulfilment model. This approach requires a multifaceted problem-solving perspective. Supply chain partners literally take on their customers’ greatest pain points — those festering issues draining productivity — and provide solutions. This value proposition includes delivering expertise in not only contracted production services but also export controls and compliance, quality, logistics, demand planning and materials management.

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