Planning towards an effective MRO supply chain
Two key words that suppliers, MRO providers and airlines should be taking note of is, “planning and communication” in reducing turnover time and sharpening cost management. These were the sentiments of Mike Cazaz, president and CEO of Werner Aero Services during the supply chain and logistics track at the MRO Asia event late last year, which focused on effective supply chain management. He was joined by Paul Richardson, VP sales for Asia and Pacific Region from AAR Aviation Supply Chain. By Syed Shah.
January 31, 2014
The panel circled around existing communications and visibility issues within the aviation supply chain. According to Cazaz the right planning and proper communication can ease the logistics process and see potential cost savings measures. There is also the need to help customers manage the reliability of components, which means getting involved in their day- to-day management.
The need to be as “close to the customer as possible” is important in understanding the customer’s needs because one needs to be able to help the customer project on their future plans for example: the expansion of their existing fleet or upgrading certain existing components. Cazaz stressed that this is needed so that turnaround time can be decreased dramatically.
Richardson corroborated further on this by mentioning of the need to manage customer demands. He said that there is a tendency to see companies better connected to their suppliers rather than their customers. Focusing on CRM is essential because it is possible to be focusing on a product or service that does not sit very well with customers. The only way to overcome this is to incorporate customer input in the push for supply chain excellence.
Some key trends in the market that were discussed are that integrated service providers are differentiating their offerings to airlines and this includes inventory support. The outsourcing model continues to play a major part, but by 2017 or so, we are going to see this model become defunct. This is because there have been a lot of fleet retirements leaving inventory trails which incurs costs in maintaining them according to customers. Considerations that need to be taken into account when measuring the trends in this business include the emerging new fleet and technology.