How to Cut Supply Chain Costs

With material shortages and long lead times projected to continue well into 2023, it will be important for all aerospace-defense industry stakeholders to be as proactive as possible. Planning ahead can not only help you prevent production disruptions that drive up costs, it can also help you find new ways to actually realize cost savings. The right materials distribution partner can help you find ways to reduce costs as you make plans to order your aerospace metals.

Consider Customization

Working with a supply partner that maintains inventories of parts commonly used on aircraft so that they can be held and shipped as you need them is a great way to reduce production costs. “When you work closely with a supplier like us, you can often place orders ahead of production deadlines without the holding fees,” says Jamie Barron, Vice President of New Source Corporation. “In fact, because of the added value that a vendor-managed inventory offers our customers, stock can be held for orders through the end of 2024 and shipments scheduled on a regular monthly basis. That way, you are able to put them right on the line when they are needed.”

Taking advantage of the option to order custom parts is another way that you can save significant time and costs. “Working with a company that can customize an extrusion to the precise size you need makes it possible for you to buy parts and machine them,” says Barron. “In that instance, the only additional cost is the cost of the die. By doing this, you can also save additional legwork.” Today, many of the country’s largest defense contractors work with their suppliers to develop custom parts.

Leveraging the Value of High-Performance Alloys

Among the many new materials being employed by aerospace technology in recent years, aluminum alloys are leading the way. With their performance being superior to aluminum alone, aluminum alloys have the potential to make the parts that are built with them lighter and stronger and more resistant to corrosion. Although the cost of aluminum alloys is greater than pure aluminum, they deliver greater long-term value and cost savings.

The high-performance alloy inventory at New Source Corporation includes stainless steel, nickel alloys, and aircraft alloy steels, and titanium. When an order for a customized part has the potential for production with a specialty alloy, New Source Corporation, working with its partners, can manage the entire process – including custom solutions for your next project.

“With current supply chain challenges, the more you plan ahead, the more you can save,” says Barron. That’s why now is the best time to find new solutions that can not only help you keep production lines running, but also help you reduce costs. New Source Corporation stands ready to serve as a one-stop shop for the parts you need—including full finished parts and custom solutions for your next project.

New Source Corporation and partners work with customers to find the best solution, which often leverages multiple technologies. Working with a key contact like New Source Corporation can help ensure that you will find the best solutions for your aerospace needs.

August 18, 2022

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