Supply chain management in SMEs within the defence / aerospace Industry - a case of simplification or increased complexity?

This paper presents an overview of the rapidly changing nature of the European defence and aerospace industry. In particular the paper identifies a number of key issues associated with the dynamic of supply chain management in respect of Small to Medium-sized Enterprise’s (SME’s) at the 2nd, 3rd and 4th tier levels. A number of issues are raised concerning the current/future relationships between SME’s and prime contractors. Particular emphasis is placed on buyer/ supplier power and the development of SME strategies in response to the industry changes. The paper suggests a number of areas that need to be researched to investigate the developing view of strategy and strategic options for SME’s in light of the industry re-structuring within the context of the concept of strategic fit and