Flying is no longer a luxury but an expected convenience among many in the U.S. and around the world. As such, the aviation industry is working hard to stay in front of consumer demands, technology trends, and operational efficiencies. But, in a business with – literally – hundreds of thousands of moving parts, it’s not easy.
Taking in the View
In 2017, the International Air Transport Association (IATA), a trade association that represents about 83% of all air traffic, commissioned a Future of the Airline Industry report to identify the top trends that are expected to impact the aviation industry, shape the direction of passenger aviation, and advise how airlines should begin to prepare.
From terrorism to oil prices, global aging to geopolitical instability, 50 drivers of change were identified. And of these 50 drivers, 13 were called out as expected to have greater potential. While you may expect that alternative fuels, cybersecurity, and extreme weather events made the shorter impact list, you might be surprised to see that “Level of integration along air-industry supply chain” was also included.
The report developed broader themes and included recommendations for industry leaders. For supply chain improvements, included in the “Supply and Flow” section, the report states, “Technologies such as blockchain have the potential to change how financial and other transactions are recorded, agreed and settled. … We suggest looking at the effect [blockchain] and other new technologies can have on the business relationships of its member airlines.”
Supply Chain Challenges
The outlook for the commercial aviation market and passenger travel is optimistic with about 753 million passengers expected to fly on U.S. flights this year, a change of almost 4% from 2017. Worldwide, over four billion passengers are projected to fly on commercial airlines this year. This number is nearly double the number of passengers just 12 years ago.
To accommodate increased airline travel, the aviation industry is building – and maintaining – more aircraft than ever. This trend is affecting all of aviation, including large military operations. These airlines must deal with the production, maintenance, repair, inventory, and product lifecycle management of airline fleets including all related procurement processes.
As an example of the enormity of the operational challenge, consider one of the most popular airplane models, the Boeing 737, which is manufactured using about 600,000 parts. That’s a lot of supply chain and operational logistics to manage.
While aircraft manufacturing requires raw materials such as steel and aluminum, electrical materials, and plastics and textiles, it is also critical that buyers secure the necessary precision aircraft systems and machine parts essential for operation. Avoiding supply chain problems with these parts is key to preventing aircraft delivery delays and a hit on profitability.
Take Flight with SyncFab
To help aviation companies simplify the parts procurement process, SyncFab smart manufacturing is the first network that directly connects buyers to precision parts manufacturing sellers using blockchain technology.
For an industry where procurement is complicated, and supply chain delays are costly, SyncFab is a sound solution.
Using blockchain technology, SyncFab adds value to any manufacturing supply chain for faster, cheaper, safer, and simpler procurement. The SyncFab platform gives buyers direct access to U.S.-based, pre-certified, quality accredited precision parts suppliers and CNC shops ready to do business.
The SyncFab Smart Manufacturing network enables buyers to track orders real-time during production and shipping and offers unmatched transparency for improved logistics, quality requirements, and overall supply chain efficiency. Suppliers are incentivized to quote faster with competitive pricing and, once parts quality is assured and goods received, payments are automatically received.
SyncFab is an easy-to-use, objective, and secure platform that delivers immediate trust among manufacturers and suppliers to do business. Learn more about blockchain can simplify your aviation supply chain.