With OEMs under pressure to deliver 38,000 new aircraft over the next 20 years, suppliers need to be on top form when it comes to aircraft production. And unless the activities of suppliers and OEMs are managed properly, the delivery of these new aircraft may be significantly delayed.
OEMs often make demands on suppliers that are not manageable, but the potential for a new contract means suppliers may not want to turn it down.
For example, in aerospace, OEMs are shifting design responsibilities onto tier 1 suppliers who don’t often have much experience in this area.
This triggers various issues for suppliers, including their need to invest in new machine tools and labour in order to meet these design requirements. But what if they don’t have the money to do this? …
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