Airbus urges suppliers to carry extra stocks amid output snags

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Airbus laid down the law to its stretched supply chain on Wednesday, with a senior U.S. executive reminding contractors to meet timing and quality targets and recommending that suppliers shore up 'buffer stocks' of critical materials.

Charbonneau also suggested that suppliers would bear the burden of carrying extra inventory to smooth any disruption, saying it was "very important" that suppliers create "buffer stocks" of critical items.

"Ultimately, working capital in sub-tier suppliers could actually determine how many airplanes are going to get built," he said.a flatter build-up in production with its earnings on Feb. 16, after abandoning its 2022 delivery goals and encountering what it has described as widespread delays in its supply chain.

 

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