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Supply Chain Challenges Faced by Aviation

2022-10-07 / 2 min

Aerospace supply chains have become more fragile due to greater globalization, increased complexity, as well as price inflation. Staffing shortages have caused airports to cancel thousands of flights. As a result of that, aircraft manufacturers are experiencing longer lead times on their production lines.

The economic unrest has instigated a wave of new challenges, with sanctions and conflict restricting the flow of critical resources.

As demand for commercial, civil and defense aviation recovers, the difficulty for companies is returning employee headcount to pre-pandemic levels. This has led to a bottleneck in the supply chain, further exacerbating the fragility of aerospace supply chains.

The combined effects of these underestimated disruptions has made it even more evident that supply chains, no matter how mature, are far more unadaptable than to be believed. Operational strategies currently focused on digital should also include a strong risk preparedness component, greater transparency and sustainability.

This is particularly important as aerospace supply chains are susceptible to various external factors such as natural disasters, geopolitical tensions, and economic fluctuations. By incorporating risk preparedness measures, companies can mitigate the impact of unforeseen disruptions and ensure a more resilient supply chain. Additionally, enhancing transparency and sustainability practices can not only improve operational efficiency. It also can empower to meet the growing expectations of customers and stakeholders.

This is not the first time, nor will it be the last, when a major disruption in aviation industry has presented itself. The key question is how can respond now, and how it would be able to respond in the future. Maintaining profitability and a healthy balance sheet during such an event is certainly achievable.

Underestimating the next set of global disruptions is perhaps inevitable as we can not know the future. However, companies which take proactive balanced steps to mitigate supply chain risks, are more likely to be able to enjoy continued success and profitability.

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