Aerospace and defence products are expected to last decades; the components that comprise these systems, however, have much shorter lifespans.
Balancing this imbalance becomes trickier as formerly cutting-edge parts become obsolete and their production runs end. While the parts are no longer being produced, the machines and devices that use them still need to be serviced and repaired.
Given the vast differences in lifespans, procurement teams in the aerospace and defence sector need to take a proactive and long-term approach to effectively futureproof their designs. By following a few simple best practices, they can build a robust strategy for uninterrupted sourcing.
Forecast potential lifecycle disruptions
Adjusting the design midway through its lifecycle to accommodate obsolete parts can work – and is sometimes even required – but it’s cumbersome and headache-inducing. Instead, companies need to evaluate market trends and component lifecycles from the start of the design process to foresee and prevent disruptions in the future.
Identifying these potentially problematic components early can allow engineers to adapt their designs and incorporate new technologies. The newer the components, the longer their production run and, subsequently, the lifespan of the system.
Procurement teams should collaborate with their supply chain partners to evaluate key components and determine how long each is expected to last on the market. Open-market distributors often have access to decades of market information and trends to inform their expertise; working closely with them early in the process allows buyers to anticipate potential disruptions and build long-term inventory-management plans to avoid them.
Stockpile critical components
Once production begins, procurement teams need to look beyond their immediate needs to build a robust supply of the key components. Supplies become increasingly limited over time, but the parts will still be needed well into the future for service and repairs. Building up stock early helps protect against the end-of-life and last-time-buy rushes that will inevitably come.
Buyers should also work with commodity experts to determine potential alternatives to key components so they can keep an eye out as supplies of the original part dwindle. With this additional reserve of viable components, aerospace and defence manufacturers can extend the life of a product well beyond the lifecycle of the original components.
Even with a robust stockpile, companies should not ignore last time-buy opportunities. As the end of the component’s lifecycle approaches, procurement teams should evaluate their needs and review their options to remain agile. Once a part ends production, procurement teams can work with commodity experts and their supply chain partners to build the longest runway possible for their production needs – if there’s one sector that knows the value of a long runway, it’s aerospace and defence.
Sourcing the parts is only part of the solution. They also need to be safely stored for future use. Companies can work with their supply chain partners to establish vendor-managed inventory programs, allowing the parts to stay safely stored in climate controlled facilities instead of taking up space in their warehouses. The parts can be scheduled for delivery in regular increments or on an as needed basis, ensuring production continues to roll.
Emphasise quality assurance
After components reach the end of their lifecycle, it can be difficult for inexperienced buyers to determine if the parts they’ve sourced are genuine and reliable. A trusted supply chain partner can help procurement teams navigate the open market and mitigate the risk of faulty or suspect parts. This process should begin with a careful sourcing plan to formally select, qualify, and continually evaluate suppliers’ ability to provide product that meets the rigorous requirements of the aerospace and defence industry.
Comprehensive testing and inspection should also be performed when sourcing obsolete parts from the open market. Third-party certifications and accreditations, such as ISO/IEC 17025, AS9120, AS6081, AS6171, and CCAP101 can provide verification that a partner’s processes, services, and products are maintained at the highest standards.
Broaden your supply chain
Franchised distributors and OEMs can help with existing components in the short term, but aerospace and defence companies also need supply chain partners who can acquire parts well after their production run has ended. An experienced independent distributor can develop comprehensive solutions to address the challenges obsolescence brings, ensuring the procurement team keeps production flowing throughout the system’s entire lifecycle.
By Tim McQuade Managing Director of Aerospace and Defence, Smith
This article originally appeared in the July/August issue of Procurement Pro.
