The aerospace industry is characterized by a highly complex supply chain, beginning with Original Equipment Manufacturers (OEMs) and extending to recycling vendors and scrap facilities. An average commercial aerospace OEM collaborates with over 200 tier 1 suppliers and more than 10,000 tier 2 and tier 3 suppliers. This vast network underscores the challenges of sourcing and managing aircraft spare parts, where every component's journey involves significant logistical hurdles.

As demand for air travel surges—reaching passenger revenues of more than $700 billion in 2024—the Maintenance, Repair, and Overhaul (MRO) industry faces numerous challenges. These include securing critical materials, managing part deliveries, navigating staff shortages, and addressing the impacts of inflation and geopolitical crises. Each of these factors heightens the urgency for improved supply chain visibility and efficiency.

Despite the Industry's inherent circular nature —where parts can be reused, repaired, or recycled—traditional procurement methods often hinder transparency and agility. The reliance on paperwork and manual processes in areas such as quality assurance, certification, and logistics creates bottlenecks that slow operations. This inefficiency not only increases the risk of errors and delays but also undermines sustainability efforts.

In response to these challenges, the industry requires innovative digital models that leverage technology to enhance collaboration among stakeholders including recycling vendors. This article explores how Artificial Intelligence (AI) can elevate sustainable practices in procurement and certification, benefiting all players in the supply chain—from OEMs to recycling vendors.

Circulation in aviation MRO

As aircraft reach the end of their lifecycle, owners decide to resell or dismantle the aircraft for aftermarket purposes and recycling. The teardown process begins with cleaning the aircraft of hazardous materials and categorizing parts into reusable and non-reusable components. Reusable parts, such as engines, landing gear, and avionics, are disassembled and can be refurbished, recertified, and used in other aircraft. Non-reusable parts can be repurposed for various applications in different industries, such as automotive or housing.

Specialized end-of-life companies play a vital role in this ecosystem, ensuring that dismantled parts and raw materials are managed effectively while maintaining inventories for future use. These organizations act as brokers to maximize revenue from recovered parts and oversee the end-of-life processes for the remaining aircraft structure. However, the quality of recovered metals can often be lower than that of the original structure, influencing which industries these metals find a new life in. This comprehensive recycling approach not only supports sustainability within the aviation sector but also highlights the importance of efficient resource management across various industries.

How AI Empower Circulation Practices  

Functions of AI Contributing to Sustainability

• Optimizing Resource Use: AI algorithms analyze data to optimize material usage and minimize waste. By enhancing inventory visibility, procurement teams can reduce excess stock while staying informed about the real-time availability of parts from various suppliers. This streamlining of operations leads to reduced costs and improved efficiency.

• Digital Documents and Smart Contracts: The evolution of document management through digitization enables interactive, paperless communication. This innovation supports smart contracts and creates digital traces, leveraging transparency and quality assurance throughout the procurement process.

At ADO Aerospace, we are at the forefront of integrating AI and circularity in aerospace supply chains. Our AI agents facilitate sustainable procurement by:

• Digitizing Contractual Documents: Transitioning to paperless operations significantly reduces emissions across the aerospace supply chain.
• Enhancing Data Sharing: By promoting seamless communication among OEMs, suppliers, and freight forwarders, our AI agents encourage the reuse of existing parts, minimizing the need for new manufacturing and supporting on-demand production.

The Impact of Circular Procurement on the Supply Chain 

Changes to Traditional Procurement Models

Circular procurement shifts the focus from linear models to circular ones, emphasizing reuse, repair, and recycling. By leveraging digital traces, stakeholders can track parts throughout their lifecycle—from manufacturing to operation and eventual recycling. This comprehensive visibility ensures effective reuse of parts before they reach the end of their service life, ultimately supporting sustainability initiatives that are increasingly critical across various industries.

Potential Future Technologies and Practices

Looking ahead, digital certification is poised to become a significant milestone in the industry. at ADO Aerospace we are expanding our AI agent capabilities to assist regulators like the FAA and EASA in issuing digital tags for parts, enhancing compliance and airworthiness. This innovation will help shape regulatory digital standards for years to come.

Conclusion

AI agents will play a crucial role in promoting sustainability within the aviation sector, whether through driving paperless operations or enabling on-demand manufacturing based on real-time data sharing. By facilitating digital operations and regulating data sharing, AI agents foster circular practices, resulting in a reduced global footprint. This evolution not only shapes the future of aviation supply chains but also develops automated circular models for MRO stakeholders.

We invite manufacturers, airlines, and regulators to embrace AI agents that promote a more sustainable and resilient future in aviation. By collaborating and sharing insights, we can address the pressing challenges facing our industry. We encourage you to reach out to continue the discussion. Let’s harness the power of technology to enhance supply chains interoperability, reduce our environmental impact, and pave the way for a more circular aviation ecosystem.