Maintenance supply chain teams all over the world have a problem. For every graduate with supply chain “skills,” there are six positions to be filled. And it’s only going to get worse. It’s expected to increase to nine to one soon. If you rely on purchasing high-value or large volumes of anything, this is a troubling statistic.
Inventory is costly.
If you don’t have the back-end support you need, you’ll want to keep inventory on hand. It’s part of doing business. It’s your risk mitigation.
But if you do have the support you need, then inventory just becomes a burden. It’s also costly. You could have millions of dollars tied up in inventory that isn’t producing revenue for you.
What if you have multiple APUs in stock? Worse, what if you have more than you need?
You can’t purchase an APU without knowing the quality and still expect good results. Quality needs to be discussed and evaluated before you purchase.
There are a lot of aspects to quality, and they dictate everything from how much you spend to how long your lead times are…and how much stress you add to your workday.
A failure to properly purchase your APU can cost you thousands of dollars and hours of your time.
Between the financials, the POs, the chasing, the follow-up and all of the small details, there’s a lot to processing your APU purchases.
So what’s the best way to process your next APU?
If the price is your only game, it’s a shame. Here's why.
Do you purchase aircraft material on a daily basis?
If so, you may have a habit costing you hundreds of hours of your own personal time and thousands of your operations dollars every single year.
In my last blog, I looked at the impact of information sharing on supply chain management and how the changing requirements of airline operators will need to be met through adaptable aircraft line maintenance processes in the future.
It considered how new flights, such as Qantas’ Perth to London route, will raise questions over appropriate build and maintenance planning for buyers and suppliers. This was further identified by a recent Boeing article discussing the future of Dreamliner construction and the rise of technology.
Getting the best price and product for your supply chain requirements
The aviation industry is experiencing tough market conditions. Many Official Equipment Manufacturers (OEMs) are finding themselves in a position where their gross margins have plateaued while suppliers are experiencing the opposite: gross margin increase.
This imbalance creates risk and disruption in the supply chain and organizations are now looking at best-practice solutions in reducing their aircraft line maintenance purchasing costs.
So, I remember when I needed to buy an INU for an aircraft maintenance project. But, I had a problem…
The d!@$ supplier never answered my call, my email, or my threats. Go figure. It was after we wired them the money. He disappeared. Gone. Vanished.
If you spend more than an hour a day sourcing aircraft parts, you're going to want to read this. Don’t postpone it. Sit back, drink your favorite coffee and absorb what I’m about to share with you.
Count the hours you spend sourcing aircraft parts. Is it an hour a day? Two? Over three hours? What if you could reduce it to 30 minutes a day?
Business is business. That’s the phrase that’s always thrown around.
But maybe it doesn’t have to be that way.
Even if it’s just saying hi to your employees on your way to the office, or asking them what issues they may be having in operations there is a human side to business. And that is the understanding that you’re working with actual people.
When you hire a supplier do you hire them for price? Or do you hire them because you actually like what their company puts out?
Is it all about money? Or credibility?
Fernando Maggiori from Air Panama shares his insight to the human side of business.