Inventory Optimisation for Aerospace Industry
In an increasingly competitive market place, product
availability is crucial to ensure maximum availability of aircraft.
Holding a large inventory of spares is often seen as the only way
of allowing immediate response for AOG (Aircraft On Ground) or
scheduled maintenance. With this in mind, Operators are becoming
increasingly aware that logistical operations previously managed
'in house' can now be provided in a more cost effective and
efficient manner by industry.
Historically, the management of aircraft availability has been
the responsibility of the MOD or Airline Operator, however, in line
with strategic objectives the transfer of this responsibility is
being passed to primary suppliers capable of combining support and
service contracts within allembracing integrated packages.
Maximising product availability by inflating inventories for
spares and repairs within pool stocks positioned in satellite
locations, rescheduling production or placing emergency orders only
results in the erosion of profits. The solution to meeting this
availability versus cost challenge lies in controlling the day to
day replenishment of those line items which make up the product
A New Approach to Inventory Management
A change to the approach in the way in which spares are
facilitated; moving away from make-to-order towards the provision
of contract service availability.
- Provision of a single point of supply and to manage other
materials suppliers as tier 2s.
- Build the capability to deliver such contract services and
integrated logistics solutions through the use of sophisticated
demand planning, inventory and network management and modelling
- Optimize supply chains with very long lead times to ensure
availability is in line with contract requirements.
Optimiza Inventory Management Software On Board
The unique appeal of the Optimiza software solution lies in our
ability to enable organisations to integrate best-practice
inventory management methodologies, using world class decision
support tools, and thus create and sustain inventory optimisation
throughout the supply chain.
By comparing current inventory management processes with best
practice, and leveraging off the unprecedented visibility provided
through Optimiza inventory management software, our customers have
been able to highlight areas of weakness, allowing them to realign
management processes, providing practical and effective solutions
well suited to the support of both civil and military support
Our Customers Agree - AgustaWestland
Our fundamental decision to adopt the Optimiza Software was
based on its ability to utilise both an event-driven system as well
as a time based one. The repair business we are involved with is
very low volume but at a very high inventory level. Optimiza's
ability to incorporate factors such as bills of materials and
expected programmes gave us a technique we were familiar with. This
allowed us to rapidly incorporate export repairs which had
previously been supported entirely separately.
One of the keys to supporting the proposed Integrated
Operational Support (IOS) projects is constant monitoring of actual
usage of parts supplied. Currently we are able to track sales but
not usage. The Optimiza solution will control the replacement and
supply of these parts with the aim of achieving the highest
Gerry Morgan, Technical Provisioning Systems Manager,