Methodology to mitigate supplier risk in an aerospace supply chain

Abstract

Supply chain design is frequently performed from the perspective of a single supplier‐customer relationship. However, as a supplier provides value to different supply chains, it becomes increasingly difficult to optimize each supply chain. Each supply chain has different requirements, procedures, and formats. A member may have requirements placed upon them by one member that contradicts another member. The competitive success of a supplier depends on its ability to participate in different supply chains. This, in turn, affects the competitiveness of each of the other supply chains. This paper presents a generic prescriptive methodology for mitigating risks in an aerospace supply chain and proposes five activities. The methodology provides a mechanism to minimize conflicting objectives. A hypothetical case study is then presented on how the methodology can be applied.

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