5 Supply Chain Problems and How to Overcome Them
Today’s aerospace supply chain management is complex and more vulnerable than ever. New technologies have driven the A&D industry to develop competitive strategies to profit from the aerospace market. These strategies have given rise to the multifaceted processes and supply chain management. To learn more about the challenges plaguing supply chain companies today and how to overcome common challenges, keep reading.
1. Cost Control
New technology, rising labor costs, new regulations, and the increasing cost of energy can drive up charges for companies through the supply chain. And this means that operating expenses are under extreme pressure.
How can you solve this?
Supply chain managers need to learn how to manage cost challenges. Proper cost control depends on transparency. Every supply chain company should analyze their expenses and overheads in a centralized way for proper cost tracking and reporting. Merchants can link this report to financial metrics and offer cost leakage and other problems.
Also, creating a cost review process that includes manufacturing, sourcing, and logistics with proper accountability within the supply chain team can help solve cost challenges.
Although production has increased dramatically due to growing demand, there is a shortage of skilled workers. Training is not quick enough to improve the workforce’s needs, and there are insufficient skill sets in handling complex projects.
Advanced technology will remain at the center of Aerospace and defense industry growth. However, aviation and defense companies must hone their human capital on developing technologies that drive their industry.
3. Risk Management
Market changes like consumer demand, credit availability, new product launches, and global sourcing can cause major issues. These problems are enormous for one organization to handle. So supply chain merchants must have the appropriate tools and methods to alleviate these risks.
What’s the solution?
Build a centralized data repository, and use it to execute reports, monitor metrics closely recognize potential issues before they become uncontrollable. Use AI to analyze data, establish a baseline, and discover unusual patterns that may turn into showstoppers along the way.
4. Unforeseen Delays
Procuring products and materials might be easy, the delivery, not so much.
Several issues can cause delays: adverse weather, fluctuating availability of products, staffing issues, procurement issues, hold-ups in customs, and so much more.
And the solution?
Having buffer stocks on hand is essential to mitigating unforeseen issues after they’ve occurred. Doing this will help protect working relationships with clients that depend on companies to deliver as requested without excuses!
5. Digitizing and Automating Key Processes
With countless logistics/3PL solutions, businesses find it challenging to consolidate supply chain data in a way that keeps the companies nimble to change.
What’s the solution?
To manage these challenges effectively, you need the proper tools. Automating supply chain data through centralized supply chain software or solution provides the visibility and systems you need to minimize costs, eliminate risks, and maximize efficiencies.
At Action Electronics, we have the tools to help aerospace, defense, military, and government with procurement, kitting, mil-spec packaging, and inventory management. We make procurement easy. Contact us today to learn more about how we can help.