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