Shipping Smarter- A Guide for Aerospace and Defense
Published by Maddy Bhatia on
May 19, 2025 7:47:34 AM
Shipping in aerospace and is high stakes, highly regulated, and highly complex. Critical aircraft parts, defense systems, and mission-ready components need to move fast—and securely—across global borders.
In this environment, traditional shipping processes break down fast. Manual work leads to compliance risks. Siloed data delays mission-critical deliveries. And poor carrier management turns simple parts replacements into grounded fleets or stalled projects.
When a grounded aircraft waits on a part—or when a compliance error triggers export violations—every second and every shipment matters. To succeed, aerospace and defense companies must ship smarter, not harder.
Here’s how leading enterprises are building more resilient, agile, and compliant shipping operations.
The Unique Challenges in Aerospace & Defense Logistics
Navigating ITAR & EAR Compliance in Global Aerospace and Defense Shipping
For businesses dealing with defense-related or dual-use goods, ITAR (International Traffic in Arms Regulations) and EAR (Export Administration Regulations) present a critical compliance challenge—especially when it comes to shipping.
Both regulations control the movement of sensitive items—even within borders. That means every shipment of regulated goods—whether it's military-grade electronics, imaging systems, or specialized components—must follow strict documentation, licensing, and tracking protocols.
With every touchpoint adding complexity, shipping teams must:
- Determine if items fall under ITAR or EAR.
- Generate the right export licenses and classification codes (USML, ECCNs).
- Ensure no unauthorized foreign national has access during handling or transport.
- Avoid costly mistakes like incorrect labeling, improper routing, or documentation gaps.
The penalties for non-compliance are severe—ranging from multi-million-dollar fines to revoked export privileges. In shipping, where speed is key, these regulations slow down processes unless compliance is built into the workflow.
Managing AOG Shipping with Speed and Precision for the Aerospace industry
In the aviation industry, every minute an aircraft is grounded (AOG) equals lost revenue, disrupted schedules, and soaring operational costs. When critical components like engines, landing gear, or electronics are needed, shipping must be immediate, precise, and compliant.
AOG shipping demands urgent coordination—parts must move across cities, countries, or even continents without delays. Missing permits, routing mistakes, or even minor handling errors can lead to major financial penalties, added diagnostic inspections, or worse, extended downtime.
Shipping teams must navigate complex logistics under extreme time pressure:
- Prioritize sensitive, oversized cargo
- Meet regulatory and customs requirements
- Secure specialized transport equipment
- Coordinate nonstop delivery through day and night restrictions
Without the right tools to automate parcel shipping processes, even a minor misstep can cost airlines hundreds of thousands of dollars per hour.
AOG shipping is mission-critical logistics where every second, and every detail, matters.
Tracking Serialized Parts Across Complex Aerospace and Defense Supply Chains
In aerospace and defense, every component—from a small sensor to an aircraft engine—must meet strict quality, safety, and regulatory standards. Ensuring full traceability of serialized parts throughout the supply chain is critical.
Today's supply chains are vast and layered, often involving multiple suppliers, subcontractors, and logistics providers across the globe. Without real-time visibility and accurate part tracking, risks multiply:
- Counterfeit components can infiltrate the supply chain undetected.
- Missing or inaccurate documentation can delay repairs, inspections, and deliveries.
- Non-compliance with industry standards like AS9100 or ITAR/EAR can result in regulatory penalties and reputational damage.
For manufacturers, MROs, and defense contractors, the ability to track serialized parts end-to-end—from production through installation, maintenance, and eventual retirement—is crucial. Yet many legacy systems and manual processes can't keep up with the complexity.
Shipping serialized aerospace parts also brings unique challenges:
- Every shipment must be paired with validated documentation.
- Chain of custody must be maintained across every handoff.
- Parts must be monitored for proper handling conditions during transit (e.g., temperature, vibration).
In a sector where safety, reliability, and accountability are non-negotiable, enhancing parts traceability is foundational to operational success.
4 Key Strategies for Aerospace & Defense Industry
1. Export Compliance: Automating ITAR and EAR Requirements
ITAR and EAR regulations are layered, evolving, and unforgiving. Missing a step—even unintentionally—can result in denied shipments, heavy penalties, or worse: exposure of sensitive technology.
To protect operations and reduce risk, export compliance must be built into the shipping process—not treated as a separate task.
How ShipERP supports built-in compliance:
- ShipDPS integrates directly into your SAP system to screen against government-certified denied party lists in real time—starting at sales order creation.
- AES filings are auto-generated and submitted through certified government portals.
- Export documentation, including ECCN (Export Control Classification Number) or USML (United States Munitions List) classifications, can be tied to the part master in an ERP system (like SAP) and can be set to automatically appear on shipping forms.
This level of automation ensures that shipments follow all regulatory requirements by default, while giving compliance officers real-time oversight and audit-ready records.
2. Prioritize AOG and Critical Shipments Dynamically
When an aircraft is grounded, every hour costs money and operational capacity. Logistics teams must identify AOG shipments immediately—and dynamically select carriers or modes that meet extreme delivery timelines.
What this makes possible:
- Automatically flag AOG parts in the ERP or WMS system
- Trigger expedited workflows and carrier selection
- Integrate direct-to-maintenance delivery options
3. Serialized Part Tracking: Enhancing Traceability from Source to Sky
Aerospace and defense parts are serialized for a reason—every component’s origin, movement, and usage history must be accounted for. But many companies lose visibility beyond Tier 1 suppliers or after shipment leaves the warehouse.
Every aerospace part has a story: where it was made, how it was shipped, who installed it. Losing track isn't just inefficient—it violates regulatory traceability standards.
To ship smarter:
- Integrate part serialization into shipment records
- Maintain full traceability from warehouse to aircraft installation
- Link shipping data with maintenance records for audit readiness
4. Embed Hazmat Compliance Into Shipment Planning
Shipping hazardous materials like lithium-ion batteries, specialized fuels, or aerospace-grade chemicals requires compliance with a complex web of international, federal, and carrier-specific regulations. A mistake isn't just costly; it can jeopardize safety and delay critical operations.
To meet regulatory requirements without disrupting shipping timelines, dangerous goods compliance must be an automated part of shipment planning.
How ShipERP strengthens hazmat shipping operations:
- Early identification of hazmat shipments at order entry.
- Automatic generation of required documentation, such as Shipper’s Declarations and CFR-based shipping labels.
- Segregation checks based on applicable regulations and carrier requirements help determine whether materials can be shipped together or need to be kept separate.
- Validating carrier restrictions and service requirements in real time.
By embedding ShipHAZ into shipping processes, logistics teams eliminate guesswork, protect their workforce, and keep high-risk shipments moving safely and legally—from production floor to final destination.
A Real-World Example: VAS Aero Services
Facing manual compliance checks, fragmented carrier management, and inefficient tracking, VAS Aero Services adopted an integrated shipping solution to transform their operations.
After implementing ShipERP, VAS Aero Services achieved:
- Real-time denied party screening
- Integrated major carrier access inside SAP
- Parcel freight invoice audit automation
- Streamlined hazardous materials management
Read the full VAS Aero Services case study.
Moving Aerospace and Defense Logistics Forward
Smart shipping in aerospace and defense is about control at every point of the journey—from compliance to carrier selection to final delivery.
By embedding aerospace-specific automation, real-time visibility, and compliance tools directly into ERP environments like SAP or Oracle, companies gain the resilience to scale global operations without compromising safety, speed, or regulations.
When every shipment matters, smarter shipping isn’t just operational—it’s strategic.
Explore More From the Shipping Smarter Series
Shipping challenges vary by industry, but the need for smarter, faster, and more resilient logistics is universal. Dive into more strategies tailored to your sector:
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