The aviation Maintenance, Repair, and Overhaul (MRO) industry relies on a complex, global supply chain involving airlines, parts suppliers, freight forwarders, and repair shops. Despite the interconnected nature of these stakeholders, sourcing, contracting, and logistics processes remain fragmented, with vital data distributed across multiple systems. Manual communication and paperwork-reliant workflows hinder real-time collaboration, while a lack of end-to-end visibility slows decision-making. This results in inefficiencies such as redundant data entries, stockouts, rushed orders, and increased costs. Improved data sharing could significantly enhance safety, reduce aircraft downtime, and optimize operational efficiency.

To overcome these challenges, the industry must adopt an open data-sharing model—a secure, regulated, and trusted data exchange framework. When procurement stakeholders can access a unified view of demand and supply activities across organizational boundaries, new efficiencies emerge. Dynamic pricing and negotiation agreements become digital, and autonomous operations begin to transform how spare parts are sold and sourced.

The Role of Data Sharing

Data sharing is crucial for unlocking the potential of the industry. By facilitating transparent communication between stakeholders, data sharing enables better decision-making, reduces operational costs, and enhances overall efficiency. One of the key ways it achieves cost reduction is by eliminating intermediaries, thereby connecting buyers directly with the actual owners of parts. This direct connection reduces the markup costs typically added by middlemen, leading to more competitive pricing and faster transactions. Additionally, real-time visibility into parts inventories streamlines processes, reduces lead times, and fosters innovation across the industry.


Addressing Reluctance

Understandably, many procurement and sales teams are hesitant to share sensitive company data openly due to valid privacy and security concerns. Additionally, legacy business models have long relied on maintaining information asymmetry between stakeholders to gain competitive advantages. However, the benefits of transparent data sharing can outweigh these concerns if managed correctly.

Distributed Ledger Technology as an Enabler

Distributed Ledger Technology (DLT) emerges as a powerful enabler for regulated data sharing across aviation supply chain partners. By distributing trust among ecosystem participants through blockchain-like networks, smart contracts ensure that sensitive data is securely accessible to validated users. This technology provides a transparent and immutable record of transactions, facilitating secure and efficient data exchange.

Real-World Applications

Consider a scenario where an airline can instantly share its spare parts requirements on the blockchain network, facilitating the procurement process. Suppliers can then automatically provide real-time quotes, allowing the airline to make informed purchasing decisions quickly. This not only speeds up the procurement process but also enhances operational efficiency. In an industry like aviation, we don't expect 100% autonomous supply chain contracts. The human element remains essential in supply contracts, ensuring oversight and strategic decision-making. However, we foresee automation and data sharing handling a significant portion of the workload for airlines in the future.

By overcoming traditional barriers and embracing transparency, stakeholders can unlock new possibilities and drive innovation. Distributed Ledger Technology serves as a key enabler, providing the necessary infrastructure for secure and regulated data exchange. It’s time for the industry to take a bold step forward and harness the power of AI and blockchain for a more connected supply chains.

Are you curious to learn more about how to automate your MRO supply chains? Reach out today and schedule a meeting with our team. We offer expert guidance on transitioning to automated data-sharing models. We are more than happy to support your MRO 0.5 transition.