ANALYSIS OF SUPPLY RESTRICTION OF BASIC MATERIALS DURING FAVORABLE ECONOMIC PERIODS FROM THE PERSPECTIVE OF AN AIRCRAFT MANUFACTURER

Abstract

The aircraft manufacturers share suppliers among themselves and with other industries. In favorable economic periods, the productive capacity of the supply base can operate close to its limit, generating disputes (although indirect) among customers for limited resources of suppliers. The research aimed to understand this problem in the case of basic materials and identify which strategies can be adopted to face it. To this end, it was conducted a case study on Embraer. It was identified that seek the guarantee of supply through a formal commitment (contract) is necessary, but not sufficient. It must also, in addition, seek an informal commitment, built on good relationships with suppliers. The information sharing about future demand is critical for suppliers to have more security in decisions about increasing their production rates and the need for investment. The risk management associated with supply restrictions of basic inputs should be performed by a process replicated along the chain, as points of vulnerability may exist in different layers. The results point to the concern with the issues surrounding the integration among supply chain members. This research hopes to contribute to the understanding of the challenges faced by an increasingly strategic function in aerospace industry: the purchasing function.