To mitigate the risk of delays or grounding aircraft, airlines and MROs buy more of the spare parts they believe they may need, leading to excess spend and surplus inventory. This often results in significant capital tied up in inventory and yet target service levels are not delivered.
But is there a way to reduce inventory investment while actually improving service levels? Maintenance, repair and overhaul (MRO) inventory is defined by uncertain demand, complex operations and large scale planning for thousands of part numbers and components. The lack of comprehensive, “fit for purpose” planning solutions to address these challenges inevitably leads to reactive decision making, resulting in a steady increase in excess inventory over time.