Aerospace Supply Chain Dynamics

A major supply chain challenge in the commercial aerospace industry involves managing the supply of specific metallic alloys in a cyclical market. When the demand for new airplanes fluctuates, gluts and shortages of raw material may occur. As a result, several suppliers have been forced to rethink their business or to exit the industry. The impact on Boeing Commercial Airplanes is equally severe. Raw material shortages have increased expediting costs and have, in the worst cases, caused assembly line shutdowns.