THE AVIATION MARKET
The aviation industry is one of the most significant contributors to the growth and size of the world economy. Aviation has been instrumental in globalization and has helped economies and people come together. The need to travel is undoubtedly a core need to drive businesses globally. Also cargo transportation is extremely critical for import-export revenues for regions. The advancement of this industry has led to successful new business models, such as low cost carriers and one day deliveries.
Air transport has more than doubled in size every fifteen years and is set to continue to expand exponentially. With east meeting west faster than ever, the demand for travel has fuelled the demand for more flights, more destinations and, of course, more aircraft. With this the growth of allied services such as catering, airline parts manufacturing, training, engineering, Information Technology and many more such industries have thrived.
The worldwide commercial fleet – estimated at approximately 25,000 in-service aircraft – is forecast to expand to 35,000 over the next decade. Airlines, allied services and aviation banks have grown in scale with demand, which has attracted many investors and capital into the sector over the past decade. Moreover international tourists are expected to spend hundreds of billions of dollars in 2018.
The rise in the aviation industry, also brings about the growth of the suppliers that provide or cater to the aviation industry. A typical aircraft manufacturer today is likely to work with thousands of vendors and a diverse range of partners in multiple industries to produce the technologies, applications, platforms and services required for a modern aircraft. The list of suppliers is huge and includes an array of partners in training, service, parts and a host of other categories. Some of the prominent suppliers to the aviation industry are airline parts manufacturers, airline F&B suppliers, airline IT software and hardware suppliers, cargo operations and technology, ground operations and many more.
Today, transparency in the supplier buyer relationship is key. Purchasing departments have a crucial role in the company. They manage a portfolio of purchases valued at 40% to 80% of the company’s total turnover (even more in some industries), the buyer has a major and central role in the company since they are connected with suppliers. Making decisions on the right suppliers, only on the basis of price is not the right thing. Having knowledge of supplier financials, quality, and even intellectual property is also a strong need. Beyond the contracts, insurance and commitment to deliver, and trust in suppliers is critical to any supply chain. Today there is no central repository of data where buyers can access to find trusted suppliers based on financial strength, ethical dealings, quality and previous track record. There is a dire need for a solution which is an unbiased central repository that manages this complex supplier data.
Blockchain technology can provide a smart solution to these issues. It offers a decentralized, unbiased approach to data management for entities, and can do a similar job for the aviation supply chain. This can improve the transparency, speed and trust to these relationships in the following ways:
- Providing a central repository of supplier database management systems on the public ledger
- Timestamping, tracking and automating transactions and buyer-supplier agreements
- Introducing smart contracts (electronic agreements that self-execute according to predefined rules) which will ensure compliance and quality adherence
- Establish proof of quality, provenance, payment and performance to minimize counterfeiting and fraud
- Provide digital ID tracking of not just parts, but part manufacturing and expiry history, supplier details and much more
Blockchain proves to be a game changer for companies that need agile supply chains to keep up to their ever increasing demands.
Introducing Genesis Supply Chain
Genesis Supply Chain (GSC) Aviation will use Blockchain technology to ensure buyers and sellers related to the aviation supply part industry benefit from a well-organized system which makes their very stressful lives, much more comfortable. GSC creates a blockchain based decentralized platform where buyers and sellers commonly interact helping them to connect with each other. GSC’s decentralized Blockchain platform will help an industry which is waiting for a system like this. GSC’s interactive search module creates an indexed rating system with top-rated vendors shown first.
GSC creates detailed identity cards which are stored in GSC’s database to allow buyers to access information about each supplier. The procurement department does not need to waste time on trying to find details; instead, they can rely on GSC’s platform. The database is secure and tamper-proof thanks to the reliability of Blockchain technology. The traceability factor adds to the security guarantee for the buyers who spend heavily on certain aviation parts. The platform saves time on the countless hours spent in finding information, less capital spent on projects which do not meet deadlines, and fewer accidents thanks to the availability to search for new technologies.
The GSC Platform ICO pre-sale runs from July 1st through July 24th during which GSC tokens can be purchased at a significantly reduced rate. For more information read the white paper or light paper and to get in touch with the team or visit https://gscplatform.io for more information.