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Leading practices in spares forecasting

The utilisation of an aircraft depends on the availability of the right spare parts, in the right place and at the right time. Because aircraft are enormously expensive capital assets, spare parts planning is one of the highest value activities in the aircraft value chain. However, the process of spare parts forecasting is far from optimised and, as a result, the MRO supply chain requires high levels of working capital to compensate for its shortcomings.

 

Continuous monitoring and Big Data hold the prospect for much better forecasting, but these techniques require the collection of relevant information. While OEMs, MROs and operators all have aspects of this data, not all the information has the same relevance. Different information has been shown to have a high, medium or low correlation to spare parts forecasting, with the data being inconsistently used within the industry. The data is often used qualitatively, providing a greater opportunity for quantitative analysis. Additionally, the data is not consistently shared across the value chain, which could greatly enhance its performance.

 

PwC’s Spares forecasting industry study included a survey and analysis of spares forecasting data and processes. Following are key findings and recommendations from the study:

 

Key findings

 

  • Successful spares planning and forecasting needs more effective collaboration and sharing of information (fleet data, engineering change orders, part reliability, service bulletins, and so on) across the supply chain.
  • The adoption of leading practices for spares planning bills of material (BOM), demand aggregation, but software enabling capabilities shows a low maturity level. This is impacting both internal and external key performance indicators across the service value chain.

 

Key recommendations

 

  • Focus on high-value data and special-factor drivers to reduce data-sharing cycle time, improve the quality of the information, and remove barriers, including:
  • Aggregate fleet data
  • Macroeconomic indices
  • Engineering data drivers
  • Consider the following leading practices to improve the overall maturity of the spares forecasting value chain:
  • Use monthly Sales, Inventory, and Operations Planning (SIOP) process to integrate the overall customer demand
  • Employ forecast spares planning BOMs to improve integration and management of changes over the planning time horizon
  • Use procurement release time fences (the boundaries between different periods in the planning horizon) to improve supply chain communication and reduce risk

 

Stakeholders across the value chain should take a fresh look at their spare parts forecasting processes. We recommend that they:

 

  • Identify the most relevant data and work collaboratively across the value chain to fill data gaps
  • Take a more quantitative approach to data analysis. Consider weighting the data based on its correlation to forecasting
  • Consider software tools to automate the process

 

Companies that take these steps can improve customer service while reducing working capital investment.

 

For more information on these issues as well as examples, please see PwC’s Spare forecasting paper.

 

 

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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01/08/2015 04:23
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"Cyber Monday," referring to the "Black Friday" after the first Monday,ED Hardy Outlet is the United States one of the most popular Kate Spade Outlet shopping day of the year. On this day, many merchants in the online stores offer considerable discounts to attract customers. "Cyber Monday" was started in 2005,Michael Kors Outlet by the National Retail Federation's Coach Outlet Shop site first, because United States Cheap Jordans businesses found that more consumers are choosing the Monday after Michael Kors Outlet Store Thanksgiving shopping online. "Cyber Monday" (Cyber Monday) term began five years ago,Coach Handbags spent the Thanksgiving holiday means describe the people back on the job, will try to buy gifts online to give back during the holiday season of family and friends. Therefore,Coach Factory on the first Monday after Thanksgiving is the major online retailers compete for Oakley Sunglasses customers and the crazy times, have sparked a round Kate Spade Outlet of shopping spree. In 2008,Tory Burch Outlet the authority specifically tracking online retailing Web site Shop. Org's survey Longchamp Handbagsshows that about 37. 3% United States adult consumers Louis Vuitton Outlet in the "Cyber Monday" Internet consumption, 16 more than in 2007. 6%. Most visited retail site on this day followed by Amazon, Wal-Mart, target, best buy and Sears department stores. In 2009, according to Core MEtrics network analysis of San Mateo,Michael Kors Handbags California company said November 30 United States online retail sales last year,Coach Outlets Online an increase of 16%, e-commerce website attracted 4 million ED Hardy Clothing visitors per minute on average, peak of 7.67 million per minute. In 2010, according to the National Retail Federation and the Shop. Survey is expected to Org2, 2010 in 1? 6.9 billion Americans in "Cyber Monday" shopping online than in 2009 increased by 10. 8%. The survey also Michael Kors Handbags shows that in order to attract the growing number Coach Purse of shopping tourists, 88. 2% United States Kate Spade Handbags businesses are making shopping online marketing,Air Jordan this percentage has been increasing since 2007. Survey shows another trend is that more Michael Kors Store and more customers opt for mobile Coach Factory Outlet phones in the "Cyber Monday" shopping online. In 2012,Coach Online Store according to the United States, the newspaper reported, United States more Oakley Outlet and more Chinese people are no longer Tory Burch Shoes interested in waiting through the night, "Black Friday" sales,Longchamp Outlet but tended to "Cyber Monday" with your mouse to complete holiday shopping.In contrast, the Web is a more attractive place not UGG Boots only can compare prices, you can also avoid commuting,UGG Black Friday one-time necessities, electrical appliances,Moncler Black Friday clothing, cosmetics and so on all close at your fingertips. But "Cyber Monday" comparable Red Bottom Shoes to the price of "Black Friday" competition, if you don't like fun people,Christian Louboutin Shoes or on the Internet find their heart goods more cost-effective. Because a lot of shopping bargains may not be what you want,Moncler Jackets you can't run in one day more than the market.

United States throughout North Face Outlet the most popular online shopping day known as "Cyber Monday". According North Face Black Friday to industry projections, 2013 United States scale Cyber Monday online shopping will reach $ 1.8 billion,Kate Spade Black Friday equivalent to 11 billion yuan, only domestic Alibaba "double 11" one-third of sales a day. United States Los Angeles market research firm IBISWorld predicted that in 2013 to Cyber Monday, sales of us $ 1.8 billion,Moncler Outlet compared with growth of 13.1%. However, the 2013 forecast growth will be lower than last year's 21%. From 2010, the United States Cyber Monday online shopping scale has been the high double-digit growth.In 2013, just past the "double 11",Coach Factory the home alone by Alibaba Group's Coach Handbags Taobao and the cat network, achieving sales of 35 billion yuan. Comparatively, United States Cyber Monday online shopping scale, it is estimated that only a fraction of domestic, China's fastest-growing online shopping,Coach Black Friday is far more than the United States. Although Cyber Monday shopping scale high growth, but for Americans, the crazy Christmas season Shopping Festival,Kate Spade Outlet is still the day after Thanksgiving "Black Friday" sales achieved in the day, eight times more than doubled on Monday, is expected to be a network. United States American Express said more people are willing to Cyber Monday online North Face Jackets shopping, rather than visit the store on Black Friday. Cyber Monday has surpassed Black Friday as United States most popular shopping day. Although more and more people offer Cyber Monday shopping, but only Black Friday Cyber Monday sales of 15%.

Packers and Movers Bangalore
25/08/2015 17:30
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Scott Thompson
PricewaterhouseCoopers’ US Aerospace & Defense Leader

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