Best Practices for Managing Aerospace & Defense Supply Chain Risks
One of the most critical components of any Aerospace & Defense (A&D) company is effective and efficient supply chain management. This will help A&D businesses meet all their financial goals and strategic initiatives.
Aerospace & Defense supply chains are complex global and wide-ranging systems with different tiers of suppliers, including original equipment manufacturers (OEMs) and maintenance, repairs, overhaul (MRO) providers, and more. The agencies that rely on them also need to meet strict regulatory and compliance requirements.
Luckily, through innovations in custom process and product management, Cre8tive Technology and Design can alleviate the threat of risks in the supply chain through powerful, effective enterprise resource planning (ERP) integration.
Navigating Fluctuations in the Aerospace & Defense Supply Chain
The A&D industry is undergoing economic, cybersecurity, geopolitical, and other rapidly evolving changes that add to the complexity of the supply chain. Utilizing ERP software can address many of the challenges that warfighters, contractors, and other industry leaders encounter every day.
With the intricacies of the Aerospace & Defense industry, users need more than a cookie-cutter system that’s installed and left with instructions and nothing else. Each implementation process needs to be continuously revamped to create an optimal solution that handles rigorous requirements and meets superior design, build, supply, demand, performance, and delivery constraints.
Supply chains issues in A&D can arise from a range of challenges, like dealing with suppliers and customers across different geographical regions, a lack of materials to make parts, shortage of transportation resources due to lack of labor, trucks, or shipping containers, adherence to ever-changing regulations, and disruptive technological advances, among others.
Let’s take a closer look at a few of these A&D supply chain issues:
Sole Source Providers
The A&D sector has a massive reliance on specialized suppliers, vendors, and third parties. A problem at just one of these suppliers can upset the entire supply chain and put a stop to production.
Cyberattacks
A&D companies are some of the most-targeted organizations by cybercriminals, especially through the supply chain. Threats to supply chains are evolving rapidly, even with advanced cybersecurity and awareness of the supply chain cyber risk.
Compliance
An A&D supply chain involves thousands of entities in a complex global ecosystem. Aerospace & Defense companies must strictly adhere to compliance within their supply network, or they could face severe penalties.
Your Trusted Tool for Managing Supply Chain Issues
Supply chain risks can be mitigated by utilizing the power of a quality, end-to-end, tailored ERP system. This can help A&D companies of all sizes grow by leveraging innovative tools that synchronize each aspect of the supply chain.
Optimizing the supply chain not only helps A&D companies improve efficiency, control costs, and reduce risks, but it also allows them to deliver value to their customers. Aerospace & Defense companies can increase supply chain resilience with a quality ERP solution that creates value for all by collaborating on business processes, sharing data, and focusing on clear strategies across the chain supply system.
In addition, unexpected benefits can be garnered with a custom ERP solution; examining existing procedures and identifying missing pieces, what should be added, and what data should be collected. With the assistance of an experienced integration partner, A&D users begin to clearly see how a quality ERP system, implemented with proper guidance, can become more effective than unaligned and outdated programs.
Article by Cre8tive Technology & Design
Cre8tive Technology & Design are an Epicor partner specializing in aerospace & defense ERP solutions.
For more information about the services Cre8tive offers, visit www.CTND.com
Cre8tive is a Gold Vendor Member of the Epicor Users Group. The EUG do not endorse or recommend any software or service and it is up to members to ascertain the suitability of a product or service for their requirements.
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