A Vertically  Integrated Aerospace Contract Manufacturer

The reality of the current aerospace and defense supply chain is complex and ever changing. It can present sincere challenges to aerospace contract manufacturers. OEM’s and Tier 1 suppliers are ever assessing their manufacturing supply partnerships with a focus  on resilience, responsiveness and strategic fit. The contract manufacturers that recognize the challenge (and opportunity) and has the ability to  adapt and execute, will be successful. One of the keys to successfully addressing this supply chain reality is being able to offer  a high level of vertical integration. One of the major  attractions for OEM and Tier 1’s are  more vertically integrated suppliers  minimize and mitigate  operational and supply side risk.

Vertical integration can include a broad spectrum of definition. For simplification we are defining it as a single supplier providing most if not all manufacturing production stages, from sourcing raw material – to machining – to managing special processing – to inspection – to assembly (when applicable) – to providing documentation and shipment, all controlled under one entity. It’s value is that it integrates and controls this multi-step manufacturing process, which can provide  better quality, enhanced responsiveness, and improved lead-times.

Supply Chain Dependability

There are many potential disruptions to our modern supply chain; material scarcity, transportation bottlenecks, geopolitical tensions, that can have negative effect on vendor performance. All manufacturing phases are inter-related and can have tremendous negative impact where delays in one phase can cascade through the entire supply chain. Having a supplier offering internal control of the various key manufacturing stages (raw material acquisition, machining, inspection, and special process coordination), can greatly diminish dependencies, eliminate bottlenecks and solidify supply chain dependability.

Single Source Accountability

In aerospace manufacturing, higher levels of vertical integration offers enhanced transparency, increased efficiencies and makes  single-source accountability essential. Accountability and response becomes even more critical when the required manufacturing involves producing complex shapes to tight tolerances  With fewer manufacturing hand-offs outside the original manufacturing source, there is less opportunity for a breakdown of communications, misunderstanding of specifications, and provides quicker response to issue resolutions, should they arise.

Quality Control Compliance and ERP/MRP

Internal quality control is essential in a vertically integrated system. In aerospace, highly vertically integrated producers are likely to have  AS9100, ISO 9001 accreditation and if DOD parts are being produced, they are ITAR registered. At Intrex we have the above stated accreditations and registration. We operate a Epicor ERP/MRP system. It is fully integrated with our QMS (Quality Management System). We can track outputs in real time, make process adjustments in advance, and verify that all documentation meets regulatory and customer-specific needs.

Because of the high level of system integration and access into our customers forecasting portal, this allows for quicker levels of response to engineering changes, which helps our production planning and delivery scheduling.  Such responsiveness is vital in the high-mix, low-volume aerospace environment of today.

Conclusion

In the current era because of the complexities and challenges that are presented in the supply chain, higher levels of vertical integration and the associated accountability are a direction that the OEM’s and Tier 1’s have moved, or are moving. They are looking for strategic alignments with suppliers that can  provide operational clarity, program level support  and offer manageable solutions. At Intrex we address these issues. We have the ability to offer various levels of vertical integration, that can provide direct impact on program success and competitive advantage.

If you would like to find out more about what we offer, we would love to have a conversation with you. Please click here.