Is there more to Supply Chain, when it comes to Blockchain for Aerospace & Defence

Is there more to Supply Chain, when it comes to Blockchain for Aerospace & Defence

Blockchain technology has the potential to solve some of the government’s most complex problems. One promising area is the Aerospace & Defense (A&D) supply chain network—one of the vast and most complex in the world, with thousands of supply chain partners across the globe.

Supply Chain Challenges which can be addressed by Blockchain for Aerospace & Defence

  • No ‘single source’ for supply chain data among A&D organizations and their partners. Most of the entities manage their own records. This fragmentation of the data leads to a significant amount of error in tracking and transmitting, making it difficult for A&D organizations to optimize their supply chain processes by reducing costs, shortening times to delivery, and managing inventory.
  • A&D organizations have limited visibility into the data. This makes it difficult for them to track goods end-to-end through the supply chain. And it often leads to confusion and miscommunication among the various supply chain participants- aircraft manufacturers, airlines, and maintenance providers. The disintegration among parties across the A&D supply chain results in A&D organizations receiving wrong parts or wrong quantities, or multiple issues with shipments.
  • The lack of data transparency causes a lack of trust among vendors, carriers, and other supply chain partners. This often leads to a significant shortfall or oversupply of goods. It is difficult for aerospace and defence organizations to determine the amount and availability of the resources they need to maintain military readiness.

Blockchain for Aerospace & Defence – Powerful Solution for Supply Chain

Blockchain technology can address these challenges by providing a single source of truth—a shared, secure, and immutable record of A&D supply chain data.

  • With the manufacturer, shippers, carriers, and other intermediaries updating the supply chain blockchain, goods moving through the supply chain can be scanned at every step. This information gives A&D logistics teams the visibility into the accurate data they need to track goods and identify issues in real-time.
  • When a supply chain partner adds a record to the blockchain, it digitally signs the data using its private “key” —identifying who made the update. Once the data is added, it cannot be altered.

Optimizing the supply chain with Blockchain for Aerospace & Defence

  • An aerospace and defence supply chain Blockchain is accessible only to supply chain partners, unlike the public nature of the Bitcoin blockchain, where anyone can view transactions. Furthermore, sensitive details such as the type of goods, geographic information, origin, and destination, can be encrypted and made visible only to relevant parties.
  • Because of the increased accuracy, completeness, and transparency of supply chain data on the blockchain, A&D organizations can properly take ownership of the movement of goods and can estimate inventories with a high degree of confidence—reducing inefficiencies and waste.


Blockchain has the potential to significantly transform A&D supply chain networks. And aerospace and defence organizations don’t have to wait for a full transformation to get started. With the right expertise, they can pilot Blockchain-Based Solutions in parts of their operations and begin to realize the many potential benefits of Blockchain for the Aerospace & Defence Supply Chain.

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