Enhancing Security and Traceability in Aerospace Supply Chains through Block Chain Technology

Abstract

This study explores the impact of blockchain technology on aerospace supply chains, focusing on mitigating risks such as supply chain disruptions, counterfeit parts, and regulatory compliance challenges. A mixed-methods approach was employed, combining quantitative and qualitative analysis using data sourced from publicly available databases, including the Federal Aviation Administration (FAA), the Aerospace Industries Association (AIA), the International Air Transport Association (IATA), and reports from blockchain technology providers. Descriptive analysis identified supply chain disruptions (M = 3.74, SD = 1.17) as the most significant risk, followed by counterfeit parts (M = 3.34, SD = 1.20). Structural Equation Modeling (SEM) demonstrated that part authentication and provenance tracking had the strongest impact on improving traceability (β = 0.40, p < 0.001) and transparency (β = 0.38, p < 0.001). A Cost-Benefit Analysis (CBA) revealed a positive return on investment, with cost-benefit ratios up to 2.31. Blockchain adoption was also found to reduce CO₂ emissions by up to 25%, while improving operational efficiency through shorter procurement lead times and lower administrative costs. However, regulatory misalignment and interoperability challenges remain barriers to full adoption. The study concludes that blockchain is a transformative tool for enhancing traceability, security, and sustainability in aerospace supply chains.

Keywords: Blockchain, aerospace supply chain, part authentication, counterfeit parts, regulatory compliance