Supply Chain Management Control in the Aerospace Sector: An Empirical Approach

Gonzalo Torralba-Carnerero, Manuel García-Nieto, Juan Manuel Ramón-Jerónimo and Raquel Flórez-López ()
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Gonzalo Torralba-Carnerero: Financial Economics and Accounting Department, Pablo de Olavide University, 41013 Seville, Spain
Manuel García-Nieto: Financial Economics and Accounting Department, Pablo de Olavide University, 41013 Seville, Spain
Juan Manuel Ramón-Jerónimo: Financial Economics and Accounting Department, Pablo de Olavide University, 41013 Seville, Spain
Raquel Flórez-López: Financial Economics and Accounting Department, Pablo de Olavide University, 41013 Seville, Spain

Logistics, 2024, vol. 8, issue 4, 1-14

Abstract: Introduction : The aerospace industry has been significantly disrupted by recent economic downturns, underscoring the need for robust supply chain management. This is especially important given the complexity of aircraft manufacturing, the globalization of supply chains, and the requirement to meet stringent regulatory standards. While outsourcing is widely adopted to improve cost competitiveness, it also introduces risks, such as compromised product quality, inefficiency, and delays. Methods : This study explores how aerospace firms manage outsourcing relationships using control mechanisms. Data were gathered through seven semi-structured interviews with supply chain managers from contracting and supplier firms focusing on both formal and informal controls in supplier selection and relationship management. Results : Supplier selection is primarily guided by trust, past performance, and delivery reliability. Firms employ formal controls, such as KPIs and certifications, alongside informal practices, including embedding internal staff within supplier operations. This dual approach ensures quality, mitigates risks, and maintains compliance with regulatory standards. Conclusions : This study concludes that combining formal and informal controls is vital for balancing outsourcing efficiency with risk mitigation, offering valuable insights into supply chain management practices in regulated industries like aerospace.

Keywords: management control systems; supply chain management; aerospace industry; partnership selection; outsourcing; interfirm relationships (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2024
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