The aerospace and defense (A&D) sector is facing a moment of truth. New aircraft orders are reaching record levels, in anticipation of a doubling of commercial air traffic over the next 15 years. Will industry be able to meet the demand?
A number of obstacles stand in the way, including the difficulties of serving an increasingly global customer base, and a complex regulatory environment. At the same time, A&D companies find themselves saddled with massive amounts of waste – estimated to top $36 billion, in the form of lost time, excess inventory and delays in the exchange of critical supply-chain data.
In such a dynamic environment, it’s essential that A&D companies create resilient networks, especially in the fast-growing sector of aircraft maintenance, repair and overhaul (MRO) activities. Today, an efficient MRO network is key to reining in costs and staying competitive in a continually changing marketplace.
Where will A&D companies find the necessary logistics and supply-chain expertise? Many are reaching beyond their organizations for help. They’re turning to third-party logistics (3PL) providers for help in solving key supply-chain challenges. Seasoned 3PLs combine regional knowledge with a full range of integrated services, including transportation, warehousing, global trade documentation, kitting and consolidating, shipment monitoring and regulatory compliance.
A strong partnership is more than a matter of supplying technical expertise and value-added skills, however. In today’s challenging environment, A&D companies are in need of problem solvers who can address their unique challenges through a truly collaborative relationship.
For an in-depth look at how to stay ahead of the shifts in the aerospace and defense supply chain, read this new IDC Manufacturing Insights Industry Brief, sponsored by UPS.
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