These best practices are fundamental to achieving the significant inventory reductions and substantial bottom-line savings that are the hallmarks of inventory optimization for Airlines , MRO ‘s and Aircraft Operators.
1. Demand Forecasting : Commissioning of additional spares may be projected to increase demand for certain catalogue items. Demand forecasting for Airlines , MRO ‘s and Aircraft Operators should include:
2. Lead Time Forecasting: Forecasting the lead time is a key factor in determining optimal safe stocks –
3. Issue- Size Forecasting: The number of units typically required for a maintenance activity (the issue size) is also a crucial factor in determining stock levels – a good inventory optimization solution will provide:
4. Economic Modelling: Economic modelling abilities need to allow for “what-if” modelling of inventory trade decisions:
5. Optimization Of Reordering Parameters: The reordering parameters i.e. minimum and maximum levels (MIN/MAX) used by the MRO & Airlines plays an important role in Optimizing Inventory Levels. An Enterprise level materials management system used to generate replenishment orders are the main determinants of inventory outcomes. Enterprises should consider optimization of reordering parameters periodically to reflect changes in usage, criticality, lead time & other factors. The optimization process addresses.
6. Inventory Segregation : Inventory segregation in MRO & Airlines provides a management framework for inventory that recognizes that a number of different management techniques which are required for various item profiles
7. Spares Risk Assessment: Some MRO’s & Airlines inventories will include a considerable proportion of spares that are high cost, high value, critical, have little or no predictable usage and require long lead times for receiving. Managing these items requires specific techniques:
8. Spares Pooling(Sharing): Significant reductions in overall safety stock investment are possible through the pooling or sharing of high value, infrequent items across various sites. To enable such arrangements, asset-intensive companies need to:
9. Knowledge Capture: Capturing organizational information relating to inventory items is an important business process in preventing errors; the inventory optimization solution should:
10. Reporting Inventory Key Performance Indicators (KPIs): KPI reporting for Inventory is important to allow improvements in the inventory to be tracked. KPI reporting should include:
BytzSoft has designed a software tool FlyPal, which effectively helps in keeping Inventory optimized. FlyPal Inventory module is been instrumental in successful inventory optimization for our 30+ customers. Enquire about our Aviation Inventory & Stores Management Software here which can be used by Airlines , MRO ‘s and Aircraft Operators.
BytzSoft Also offers: Crew Rostering & FDTL Software for Airline & Aircraft Operators Safety Managment Software for Airlines & MRO's