Supply chain is a crucial part of any business involved in sales of some kind. Aircraft manufacturing is no different to that. Without supply chain a business is simply unable to operate. Airbus and Boeing are the leading aircraft manufacturers in the aviation along with Boeing. Industry demand has led aircraft orders to increase and so both Airbus and Boeing plans to increase production. The question is if the supplier can keep up.In this paper I will analyse the supply chain of aerospace that affect both manufactures and how the increase in demand of airlines has affected the supply chain. I will do so by highlighting the key suppliers and how their reactions effect the entire supply chain. It will also focus on the importance of the SCM in a business for efficient daily operations.Fuel cost in every industry has seen a rise, especially in aviation. The increase in passengers in passenger travel has demanded more fuel efficient aircrafts. This has resulted in airlines changing -their future strategies towards manufacturing and design. In Europe Ryanair uses the most recent and fuel efficient aircrafts on the market, B737-800. Their strategy is to keep aircrafts for a maximum of 5 years before selling them on and ordering replacement, more advanced and efficient models directly from Boeing, the manufacturer. Ryanair’s whole model is based off this as well as their forward thinking in 2001. Many airlines across the world from North America to Europe to Asia are seeking more efficient models and seeking to buy them straight off the manufacturers. The two largest manufacturers of the world, Boeing and Airbus, will have to adapt their supply change to fulfil on all orders received from customer airlines and others.
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