The aerospace industry faces increasing challenges in managing complex global supply chains due to tariffs, sanctions, and evolving trade regulations. Companies must ensure transparency and compliance in the movement of components and materials across international borders, particularly as governments impose restrictions on imports and exports.
Supply chain and logistics management firm Cofactr is among the companies developing technology-driven solutions to improve transparency and compliance. The U.S.-based startup recently acquired artificial intelligence platform Factor.io to enhance its ability to track and log aerospace components throughout the global supply chain.
According to Cofactr’s co-founder and chief strategy officer, Phillip Gulley, companies must navigate multiple compliance requirements, including tariff estimations, duties, and taxes, while ensuring that materials are sourced from authorized channels. He emphasized the importance of having proper documentation, country-of-origin data, and accurate landed cost calculations.
Aerospace supply chains often involve multiple suppliers and international transactions, making full transparency across all tiers essential. Cofactr aims to support companies in managing supply chain visibility, particularly as manufacturers consider shifting production locations in response to tariffs. Additionally, businesses must keep track of lead times and pricing for parts to maintain operational efficiency.
Compliance and Risk Management in the Aerospace Industry
Ensuring that critical components are sourced from authorized suppliers is a key concern in the aerospace sector. Cofactr’s experience in the electronics industry has highlighted cases where components inadvertently ended up in restricted or sanctioned equipment.
Gulley noted that some manufacturers lack advanced tracking methods for compliance. He cited instances where critical defense-related systems relied on manually labeled parts rather than automated tracking. Changes in manufacturing locations also add complexity, such as when a supplier moves production from Taiwan to China, potentially affecting compliance status.
To address these issues, Cofactr has developed software to document and verify supply chain data. The platform links country-of-origin details with certificates of compliance to ensure companies maintain accurate records of their components’ history.
Digital Tracking and AI Integration
Cofactr assigns unique digital identifiers to components, linking physical parts to digital records in a company’s database. This tracking system provides real-time information on part locations and handling history. If a consignment is split into multiple shipments, the system generates new digital records while maintaining connections to original procurement data.
The company offers integration with existing inventory management systems and operates its own logistics facilities. Its New York-based warehouse collects data on materials in transit, and plans are underway to open a West Coast facility to expand operations.
One of the challenges in implementing comprehensive supply chain transparency is ensuring participation from all suppliers, particularly in multi-tiered networks. Cofactr’s approach requires coordination between prime contractors and their suppliers to create a standardized process for tracking materials.
To enhance efficiency, Cofactr is leveraging artificial intelligence to manage documentation associated with its tracking platform. AI tools can streamline the processing of export control documents and filter communications, reducing the workload for compliance teams.
Several aerospace and defense companies, including Stoke Space, Neros, Salient Motion, H3X, AnySignal, and Farcast, have adopted Cofactr’s technology to improve their supply chain compliance processes.
Your go-to source for supply chain logistics news updates: The Supply Chain Report. Enhance your international trade knowledge at ADAMftd.com.
#AerospaceSupplyChain #TechForCompliance #SupplyChainInnovation #RegulatoryTech #AerospaceLogistics #ComplianceSolutions #DigitalSupplyChain
