Aviation Logistics & Supply Chain

Aviation logistics plays a vital role in a globalized world like the one we live in today. In general, the aviation industry makes it possible to transport the necessary resources over long distances, thus enabling organizations to extend their operation across the globe. And this is not limited to goods or raw materials, it also means human resources with the capability of providing relevant services. All this makes the global economy grow, providing a better quality of life and increasing the living standards for us.

What is Aviation Logistics?

What does aviation logistics involve? It is that part of the supply chain management that plans, implements, and controls the efficient, effective flow and storage of goods and services to meet customers’ requirements. Point being, everything must come together on time and aligned, or the financial impact on the organization can be significant. I remember my time as a Vice President of Supply Chain at a major commercial aircraft builder. We received an order to build 50 commercial airliners. It was clearly stated in the MSA (Master Service Agreement), the first 5 aircraft had to be delivered on specific delivery schedules or else, the first aircraft off the line would have to be at no cost to the customer. Guess what? Yes, we were late on the first delivery of the aircraft due to some wiring issues with the supplier. So, we gave the keys for the first aircraft to the customer at no cost. Our financial loss was $245M. now, that does seem like much on the total order of $12B. but still $245M is a hard bullet to swallow. Lessons Learned: ALIGN-ALIGN-ALIGN & BE ON TIME.

What are the Main Components of Aviation Logistics?

The word aviation immediately makes you think about the main activity of air transportation which is flying, the reality is that there is much more in the logistics operations of the airlines. 

To make sure their business is thriving, airlines need to cover the following components of aviation logistics.

Customer Service:

This is common across companies and industries. However, for aviation logistics, customer service is vital, especially to guarantee there are no significant disruptions in the plans of their customers. Also, customer service involves ensuring passenger safety and comfort, integrity and safety of cargo.

Demand Forecasting:

This is a critical aspect of the aviation economy. And this affects the whole air transportation ecosystem. Predicting the flight demand is mission critical for better gate planning. Still, it is also useful to improve operations efficiency and cost-effectiveness. Having the proper logistics in aviation provides the ability to use the forecast properly to make better informed and smarter decisions that will result in higher sales with reduced costs.

Ground Support:

This aspect of logistics is sometimes taken for granted, but it is essential for air transportation companies. Ground support usually includes handling passenger luggage or cargo, dealing with permits required by the government or corresponding institutions, and fueling activities.

How Important is Logistics for an Airport?

Aviation logistics is essential for any company involved in the air transportation system, and airports are significant players in that system. Without proper aviation logistics, the general logistics of an airport are doomed to failure because the airport would lose its ability to provide a smooth experience to the passengers.

“The word aviation immediately makes you think about the main activity of air transportation which is flying, the reality is that there is much more in the logistics operations of the airlines.”

Therefore, airports usually have a department committed to working with air transportation companies in search of opportunities to improve aviation logistics.

Moving cargo by air has been growing rapidly in recent years, and it may continue growing for a long time in the future. In general, moving resources by air has proven to be a great business and even an essential aspect for any government trading aspirations.

Also, logistics has been an excellent source for jobs in aviation. Many employers are constantly in search of knowledgeable and trained personnel in the logistics area. If you search for careers in aviation, you will likely find many opportunities in areas such as customer service and support, computer software that is necessary for logistics, forecasting, revenue analysis, or just logistics management. And these jobs are usually very well paid.