Integrating accounting models with supply chain management in the aerospace industry: A strategic approach to enhancing efficiency and reducing costs in the U.S

Oluwafunmilola Oriji 1, * and Olorunyomi Stephen Joel 2

1 Independent Researcher, Irving, Texas, USA.
2 Independent Researcher, Dallas, Texas, USA.
 
Review Article
World Journal of Advanced Research and Reviews, 2024, 21(03), 1476–1489
Article DOI: 10.30574/wjarr.2024.21.3.0873
 
Publication history: 
Received on 17 September 2023, Revised 31 January 2024, and Accepted 1 March 2024
 
Abstract: 
This concept paper proposes the integration of accounting models with supply chain management in the aerospace industry as a strategic approach to enhancing efficiency and reducing costs in the United States. The aerospace sector faces numerous challenges, including complex supply chains, stringent regulatory requirements, and cost pressures. By combining accounting principles with supply chain management strategies, this approach aims to optimize operations, improve financial transparency, and foster collaboration among stakeholders. Key objectives of this initiative include streamlining financial processes, enhancing decision-making capabilities, and mitigating risks associated with supply chain disruptions. By leveraging accounting models such as activity-based costing, lean accounting, and performance measurement systems, organizations can gain insights into cost structures, identify inefficiencies, and allocate resources effectively across the supply chain. Moreover, integrating accounting with supply chain management enables real-time monitoring of financial performance metrics, enabling timely interventions and adjustments to achieve strategic goals. This approach also facilitates better coordination between finance and operations teams, leading to improved communication, alignment of objectives, and ultimately, enhanced organizational performance. In the context of the aerospace industry, where precision, reliability, and cost-efficiency are paramount, this integrated approach offers significant benefits. It enables companies to optimize inventory management, minimize waste, and identify opportunities for cost savings throughout the supply chain. Additionally, by fostering a culture of continuous improvement and data-driven decision-making, organizations can adapt more effectively to market dynamics and gain a competitive edge. This concept paper outlines the theoretical framework and practical implications of integrating accounting models with supply chain management in the aerospace industry. Through case studies, best practices, and implementation strategies, it provides a roadmap for organizations to embrace this strategic approach and realize its full potential in enhancing efficiency and reducing costs in the U.S. aerospace sector.
 
Keywords: 
Integration; Accounting models; Supply chain management; Efficiency
 
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