The Effect of the Supply Chain Issues in the Aerospace Industry

Ken Newton, the director of SCM Engine and Lease Management, has effectively driven changes to operations, and material management departments in Alaska Airlines. The Industry leader with his effective communication, collaboration, strategic thinking and negotiation skills secured invitations to speak at MRO, AeroEngine, and S&OP conferences.

1. What are some of the major challenges and trends that have been impacting the aerospace industry lately?

As expected, supply chain issues have had a huge impact on the industry.  One of the challenges is that tier 2 and 3 suppliers are having challenges and the tier 1 suppliers do not have enough oversight of the production at these suppliers. This is driven in part to some level of comfort we have achieved over the last 10 plus years as just in time inventory planning has worked fairly well. The supply chain issues are driven by a combination of a lack of workers and geo-political issues impacting raw materials. Combine that with the increasing demand for parts and services, due to the high level of demand as the industry picks up, and you have a recipe for major hiccups in the supply chain.

2. What keeps you up at night when it comes to some of the major predicaments in the aerospace industry?

As noted above, supply chain issues.  Everyone is playing a bit of a “whack a mole” game as issue pop up across the spectrum of the supply chain, from things like tape to available induction slots for engines.  The concern is that there doesn’t seem to be an end in sight yet because we don’t know how the war in Ukraine, China’s lockdowns and transportation challenges will get better.

3. Can you tell us about the latest project that you have been working on and what are some of the technological and process elements that you leveraged to make the project successful?

Unfortunately I do not have an example here as I negotiate contracts, recently finalizing a $900M engine services agreement.  We still analyze and negotiate these deals the old fashioned way, excel and word docs.

"Everyone is playing a bit of a “whack a mole” game as issue pop up across the spectrum of the supply chain, from things like tape to available induction slots for engines.  The concern is that there doesn’t seem to be an end in sight yet"

4. Which are some of the technological trends which excite you for the future of the aerospace industry?

From a services perspective, I would say predictive maintenance technology and better material forecasting tools.  Blockchain is also a very exciting trend and I am hopeful it can gain traction and develop standards that will move it into the mainstream in the aerospace industry.  From an industry perspective I think electric aviation and hydrogen technology are super exciting and I look forward to seeing how it impacts the industry.  From a non-technology standpoint, I am super excited about how ESG overlays with supply chain and sourcing decisions

5. How can bud and evolving companies reach you for suggestions to streamline their business?

They can contact me via my email, either ken.newton@alaskaair.com or Newtonapc@msn.com or they can reach out via LinkedIn.