Supply Market Intelligence – Increasing Procurement Efficiency and Cost-Saving Opportunities for Aircraft Manufacturers

Supply Market Intelligence – Increasing Procurement Efficiency and Cost-Saving Opportunities for Aircraft Manufacturers

SpendEdge’s supply market intelligence study on the identification of aluminum suppliers for a leading aircraft manufacturing company identifies the supplier profile, key service offerings, and offer supplier performance evaluation.

Market landscape for aluminum

Aluminum comprises of almost 80% of an aircraft’s unladen weight as it reduces the overall weight of the aircraft and the fuel consumption. Apart from aerospace industry, aluminum is also used by a host of other industries such as packaging, construction, household utensils, electronic appliances, coins, and automotive for different purposes. The supply market for aluminum is deemed competitive as it is one of the most abundant metal in the earth’s crust.  Manufacturing industries prefer aluminum because of its physical and chemical properties and its cost saving aspect. Aircraft manufacturers use aluminum either as a metal or alloy of magnesium, copper, silicone, or chromium. Variations of aluminum allow it to serve different purposes for an aircraft which ranges from high-strength to corrosion resistance.

The supply market intelligence study by SpendEdge on aluminum suppliers provides an in-depth understanding of the supply market landscape and the manufacturing sector. This market assessment also offers clients an extensive overview of the current supplier base, procurement models, supplier cost-breakup, and price negotiation strategies. The suppliers in the market are focusing on innovation and technological advancement to meet the demand for the high-quality aluminum metal and alloys.

Emergence of Low-Cost Carriers (LCC)

People are resorting to low-cost carriers (LCC) for their travel needs resulting in an increase in the frequency in air travel. Instead of opting for large aircraft, budget airlines prefer medium sized aircraft to serve multiple routes and operate efficiently. Ordering aircraft in bulk to reduce the overall purchase price is the latest trend among budget airlines. Also, technological advancements in aircraft design to improve aerodynamics and increase fuel efficiency has compelled LCC manufacturers to make frequent parts and spare purchases. LCC’s has spent millions of dollars in recent years to install winglets made of aluminum to reduce their burden on overall fuel consumption.

Solutions SpendEdge offer to businesses

SpendEdge’s supply market intelligence study for leading aircraft manufacturer provides insights into the supply market, cost components, supplier engagement models, cost-saving opportunities, and price negotiation strategies. The solutions offered includes:

  • Offer detailed understanding of supplier best practices and key offerings of the supplier
  • Provide an in-depth insight on supplier positioning, procurement models, and supplier performance evaluation process
  • Deliver an exhaustive breakdown of the current supply market landscape of the aircraft manufacturing
  • Provide a complete market overview of the aluminum supply market by listing out current practices in procurement
  • Deliver information on cost reduction levers, supplier profiles for long-term contractual relationship, and key supplier assessment parameters and benchmarking


Read our complete case study titled – Supply Market Intelligence Solution Helps a Leading Aircraft Manufacturing Company



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