Aerospace and Defense Digital Supply Network Survey 2015

Accenture recently polled supply chain executives at 30 companies in North America, Europe and Asia Pacific to better understand their supply chain strategies and related digital systems investments. The companies surveyed in the Accenture Digital Supply Network Survey for Aerospace and Defense represented fixed wing and rotary aircraft OEMs, defense contractors, engine OEMs, aerostructures and electrical/mechanical systems suppliers.

1. Across the industry segments surveyed, 59% of respondents plan to increase their level of manufacturing outsourcing over the next two years. The rise is primarily due to limited in-house capacity (40%) and a need to reduce costs (24%).
2. In line with this general trend, more than half of those surveyed (55%) expect to increase their share of overseas sourcing during the next two years. This is largely because of the need to satisfy end-market industrial participation or offset requirements (64%).
3. Despite risk concerns, 59% of respondents have not seen their share of high-risk suppliers change over the past two years.
4. More than 75% of respondents expect that over the next two years, they will need to increase the amount of time their staff spend on-site with suppliers to support the introduction of new parts and to transition new suppliers.
5. Nearly half (47%) of respondents indicate that their top priorities are to improve the availability of supplier delivery data, and obtain better transparency into supplier operations to deliver aircraft and equipment on time.
6. The respondents to the survey expect that within the next two to three years, the greatest impact on supplier collaboration will come from digital technologies such as virtual product simulation, collaboration and analytics.
• Analytics is perhaps furthest along in terms of supporting supply chain functions, especially for supply chain execution, planning and forecasting. Analytics for supply chain execution is currently used or planned by over three-quarters of respondents. Analytics for planning and forecasting is currently used or planned by two-thirds of respondents.
• Additive manufacturing is making progress toward delivering on its promise of moving beyond prototyping and into certificated production, enabling bill of materials (BOM) consolidation and the ability to fabricate parts on demand. Aerostructures (26%), components/mechanical sub-assemblies (37%) and mechanical systems (33%) are the primary applications being used or planned for in-house 3D printing. Certification of process and parts remain the most daunting challenges to implementing 3D printing, with 40% of respondents citing this as a barrier to adoption.
• The use of mobility tools such as tablets, wearable and personal electronic devices to support supply chain functions is also set to increase. Mobility is used or planned in logistics and supply chain execution by approximately half of respondents; another 20% are discussing its use for logistics and 13% for supply chain execution.
• There are plans to use cloud technology across a wide spectrum of functions, with a strong emphasis on supplier collaboration. Cloud is currently used or planned by 34% of respondents and under discussion at an additional 30%.

Source: Schmidt, J., Brincourt, J-L, Gottlieb, C., Vanatsky, R., Glandieres, O., Consonni, P. 2015. Are You Playing Ramp Up Roulette With Your Suppliers?  Aerospace and Defense Digital Supply Network Survey 2015. Accenture Research.