Suppliers in the aerospace industry know there are inherent risks that come with operating on a global scale. You could try to create a massive plan to manage every possible risk in the supply chain, but the cost would be equally massive, creating financial risk.
Instead, consider how to create a smart logistics risk management plan that puts your company in a position to balance cost vs. risk factors without compromising your operation and customer relationships.
1. Identify Your Predominant Logistical Risk Factors
Every aerospace supplier needs to strategize a unique risk management plan. No two suppliers are alike in terms of their size, location, product, or capabilities. Therefore, you need to take time to assess the risk factors specific to your operation.
Risk factors for suppliers include:
- Meeting the on-dock date for your customer
- Delivering your product without damage
- Completing last-mile delivery
Then, you need to identify what the typical causes of these risks are. The common ways that risks present themselves in the supply chain include:
- Production delays
- Carrier delays
- Space allocation constraints with the carrier
- Non-supplier related disruptions
Take inventory of your operation — both the risk factors and the causes of risk that apply directly to your company.
2. Strategize a Solution to Mitigate Risk
After assessing the risk factors that apply to your operation, develop a risk management plan to address issues throughout your global supply chain.
Where should you start? Proper forecasting. You need to leverage your data and the industry trends to proactively plan for each risk. You cannot rely on a reactive approach trying to scramble your resources to solve a problem or meet a tight deadline. It’s highly inefficient and costly over time.
Starting with forecasting will also allow you to build resilience and flexibility into supplier partnerships. A harmonious working relationship will reduce the presence and impact of risks in the supply chain.
Proper planning also allows for a transit time that utilizes low-cost transportation methods. When you plan ahead, you can deliver on-time at the lowest possible rate instead of adding significant costs for faster delivery.
3. Work With a Logistics Partner to Support Your Risk Management Plan
We recognize that aerospace suppliers are under a tremendous amount of pressure trying to balance cost and risk factors to meet deadlines and deliver on quality.
Our company offers superior service by shipping products through the most complicated and risk-filled global supply chains. We deliver certainty with a 98.8% on-time performance rating.
To achieve this performance rating, we follow a strategic approach that includes:
- Participating in forecasting for aerospace suppliers
- Offering multiple transportation options to manage velocity and cost in the supply chain
Through this collaborative effort, we help suppliers identify and anticipate risks before they materialize and to help control costs.
Work with our knowledgeable and experienced team to develop a logistics risk management plan that fits your operation. We look forward to delivering your supply domestically or internationally on-time and without damage. Because our reputation rides with your cargo™.