Realizing – The advantages of Inventory Optimization

Figuring out the perfect stock levels for Inventory in almost any Airlines / Aircraft operator or MRO isn’t an art but it is a science. For many companies, it’s generally a hopeless figures game.

Logistic managers are frequently confronted with the task of maintaining thousands of products, each using their own features, requiring intricate and time-consuming calculations. With no organized methodology and powerful analytical tools, the positive control over huge inventories becomes an improbable job, leading to fast growing stock levels coupled with serious shortages of spares.


Inventory optimization

Inventory optimization

Aviation MRO inventory generally include:

  • All maintenance spares stocked to provide unplanned breakdowns and scheduled maintenance.

  • The consumables required to keep your maintenance processes running.

  • Spares stocked by OEMs (original equipment manufacturers) to service the gear you’ve purchased in them.

Today, Aviation MRO Organizations with no enhanced aviation inventory risk over-compensated and under-performing assets.

To prevent pricy shortages,Store Managers of the MRO frequently choose to utilize caution with regards to figuring out stock levels. However that strategy has its own cons when it comes to costs. Inventory consumes space, could get broken, and often may become obsolete – that carries surplus stock is really a cost for an organization. Within the time, lots of of unused/obsolete stock means waste and loss.

Optimizing inventory means locating the seamless balance between supply and demand. The 2 main reasons that dominate optimization are risk and Return on investment. In simple term, Inventory optimization is useful to maximise return in a given risk level, in order to minimize risk for any given anticipated return.


It maintains an amount of spares inventory that almost eliminates out-of-stock conditions while improving efficiency and cutting inventory costs.

Any business that carries aviation spares inventory can usually benefit from realizing optimization practices and concepts. Enhanced spares inventory shows that an MRO organization is putting its investment where it ought to & if this should, without incurring unhindered future risks.

An enhanced inventory forms a continuing enhancement loop that creates tangible, sustainable results within the time period – driving asset performance, competitive benefit and positive bottom-line results.

To offer the business objectives discussed in the following paragraphs, companies require an approach that supports unique management needs of Aviation MRO Inventory, where couple of requisites that need considering are:

  • High criticality

  • Longer lead time

  • High cost

  • Infrequent and highly variable usage

  • Low data quality

Make No Mistake ! – achieving and looking after enhanced inventory is complicated and challenging. But, simultaneously it’s transformative.

This is exactly why very best in class MRO organizations go on – the advantages include, business transformation, elevated service and safety levels, declines in inventory hold-in and stock-out risk, far over-shadow the expense.

Using the precise tools and technology based on the best aviation Inventory processes and finest practices, effective organizations are earning the stated transformation and reaping substantial rewards.

Inventory Optimization Technology

Optimization involves frequently acquired data points and also the measurements involving these data points instantly, is needed in creating an enhanced inventory.

A smart decision support system that comes with guidelines, gives logistic managers a strong tool to handle their business objectives making their teams considerably more lucrative.

By leveraging most advanced technology tools, automated processes and finest practices in Inventory optimization a good thing-intensive organization can consistently produce results such as these:

10-20% decrease in funds committed to safety stock

8-20% reduction in write-offs of surplus and obsolete stock

15-22% less stock-outs, for improved availability and productivity

10-20% stop by administrative costs for replenishing stock

30-60% less resource time spent managing stores