The global aerospace supply chain is a highly structured, multi-tiered global system that supports the needs of both civilian and military aviation sectors. With millions of parts involved in the manufacturing of aircraft and their various related systems, a clearly defined set of tiers that organizes types of entities is essential for operational efficiency and technological advancement. This blog will break down the three main tiers of the aerospace supply chain and explain how each contributes to the industry, so be sure to read on if you would like to learn more.
The aerospace supply chain is a globalized network of companies that design, manufacture, and deliver aircraft parts, components, and systems to original equipment manufacturers (OEMs) and others. This chain consists of three primary tiers, each of which plays a distinct yet interconnected role.
Original Equipment Manufacturers (OEMs) are considered to be at the top of the supply chain, as they are responsible for producing final aerospace products. These products may be as large as commercial aircraft, military jets, and space vehicles, or simply include the integrated systems that go into them.
OEMs integrate parts and subsystems provided by lower-tier suppliers, ensuring compliance with rigorous performance, safety, and quality standards. They also serve commercial airlines and military branches worldwide, with sales either being direct or through distributors.
Examples of Major OEMs: Boeing, Airbus, Lockheed Martin, Raytheon, Northrop Grumman, General Dynamics, and BAE Systems are all notable examples of industry leading OEMs.
Tier 1 companies are direct suppliers to OEMs, often being the ones that design and build major systems and modules that are integrated into final products.
Overall, Tier 1 companies act as the “pulling force” of an entire supply chain, dictating demand across lower tiers.
Tier 2 suppliers directly support Tier 1 companies by manufacturing complex components and subassemblies that are then used in larger systems.
Over the years, OEMs have increasingly engaged Tier 2 suppliers directly due to their specialized capabilities and cost-efficiency.
As the base of the aerospace supply chain pyramid, Tier 3 suppliers handle basic items like raw materials, small components, and standard services that directly feed into Tier 2 and Tier 3 outputs.
Although less visible than others, Tier 3 manufacturers are still indispensable for sustaining upstream production and innovation.
As all supply chain tiers are interdependent, smooth collaboration between them is essential for maintaining delivery schedules, regulatory compliance, and product performance.
As stated before, there are some cases in which OEMs bypass upper tiers to work directly with Tier 2 or Tier 3 suppliers, especially for highly specialized or cost-sensitive components.
As one can see, understanding the aerospace supply chain tiers and their distinct roles provides insight into how global aerospace projects are carried out with precision, reliability, and speed. Each tier fulfills a critical function, and a disruption at any level can have significant downstream effects. With this knowledge, you can now better approach the market yourself, equipped with all that you need to best find suitable project options and purchasing partners that meet your needs.
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