The U.S. Aerospace & Defense industry is an global leader in the development, production and design of technically advanced aerospace systems, space vehicles and defense technologies. The main branches of A&D are Engineering & Science Technology Research (ESRT), Engineering & Technology Development (ETD), and Software Development & Research (SDR). Aerospace companies throughout the United States focus on several areas. They include, but are not limited to, aerospace design, programs management, systems engineering, systems integration, and aerial structures. Aerospace companies rely heavily on computer technology for a variety of purposes including flight control, management and software, data management, and automated control. They also use complex machinery such as vacuum tube welding, super-glue, and aluminum forging to produce components such as wings, landing gears, and rudders.
With such an expensive and important industry relying on complex and expensive materials, it is no wonder that the cost of supplies can put a strain on budgets and cause problems for the overall budgets of the United States. Therefore, the U.S. Aerospace & Defense needs to find innovative solutions to make the most of their expensive aircraft and systems. There is a growing trend for the aerospace & defense industry to outsource their procurement needs. Many companies have found that outsourcing saves them the time and money in creating and fine-tuning the designs for their aircraft. Outsourcing also helps the company focus on more important things such as developing new technologies for aircraft and building prototypes to help improve safety and efficiency. Outsourcing also allows the company to focus on what they do best – fly the airplanes.
Airframes and support structures are the next biggest expense for Aerospace & Defense. Some military agencies like the Army, Marines and Navy rely on full-scale aircraft carriers as their primary vehicles for transportation and long-term deterrence. Such carriers are often considered to be the largest and most expensive pieces of equipment that a government may acquire. Some other military branches like the Air Force have smaller sized ships that are used for transportation, amphibious operations, surface vessels and other war fighting purposes. All these platforms require extensive and expensive infrastructure investments to sustain the ships in good working order for years to come.
Next is the support structure for aerospace & defense. This consists of the engineers, technicians and support staff required to maintain and upgrade the systems of the aircraft. These personnel are needed all over the world and in many cases, they must be located in different regions to make sure that a problem does not arise even when one aircraft is going down the lane towards enemy territory.
The value chain for Aerospace & Defense revolves around three essential elements. This value chain starts with the customer or aircraft buyer. Customer acquisition includes evaluating the product, analyzing the client’s budget and analyzing the client’s needs. The second part of this value chain is to identify the vendors that would sell the aircraft to the customer. This vendor selection is done based on the aerospace & defense requirements identified by the customer.
The third and final section of the supply chain deals with the manufacturer of the military aircraft or other aerospace & defense vehicles. Maintaining a consistent and stable source of parts and materials for aircraft and repairing and replacing defective parts is part of the manufacturer’s responsibility in this supply chain. Failure to keep up with the manufacturer’s part and supplies may lead to a catastrophic event that would tremendously affect the capability of the entire system.
Aerospace & Defense application includes numerous programs and sub-programs that are vital to the functioning of the entire supply chain. Program management is necessary for the smooth operation of all of these sub-programs. In order to be a key player in this program management, Aerospace & Defense companies should deploy the best supply chain strategies. The strategies should integrate all of the factors such as cost, schedule, reliability and performance of the entire system.
It is important to note that the ability of an organization to maintain its competitive edge will contribute heavily to the overall success or failure of its aerospace & defense programs. The most effective and efficient strategic alliances will help to ensure the ongoing success of the aerospace program. These alliances must address every aspect of the defense program, including cost, schedules, materials, operations and technology. The strategic alliances must have the flexibility to respond to changes in demand, technology, economic conditions, and industry trends to ensure the system is always fully capable of delivering the maximum value to its customers.