05:13
Faizan
Why do you spend millions on unnecessary inventory?
This questions riddles you with turmoil.
You dance with excess inventory to support your fleet, or gamble with an AOG because your component source dropped the ball.
Yelling and screaming gives you some relief, but you're still dancing.
And let's be honest, is dancing something you're good at?
If you're anything like me, dancing is not a pretty sight.
Millions of dollars are put into inventory to sit and gather dust just for "piece of mind."
It's either that or subject yourself to mediocre service levels.
So what are you supposed to do?
Aircraft component pooling
Don't worry, I'm not going to be your Wikipedia for pooling.
It's rather simple.
You need a part, you have immediate access to inventory that you didn't have to invest in, and you install the component on your aircraft.
That's a reduced definition, but you get the point.
Aircraft component pooling allows you to have access to an agreed upon inventory that you can tap in to at any given moment. Gone are the days of you having to invents millions in inventory.
Playing with inventory is not your strong suit and it's definitely not where you make money.
Aircraft component pooling has many benefits and since the average airlines spends 8x more than they have to to support their fleet, there's some serious strategies to reduce the inventory burden.
Time is money, and money is... money
How much is your departments time worth?
I'm sure once you get into the cost of time, the number is shocking.
Now add on the cost of inefficiencies and you'll get a real time picture of where the money is bleeding out due to operational inefficiencies.
Maybe it's chasing a supplier for shipment confirmation on a PO, babysitting an MRO for the OH of your units, or trying to resolve an AOG.
Whatever it is, everything has an opportunity cost.
If your department is spending too much time on processing orders there's something else they're missing out on.
What's their opportunity cost?
This questions riddles you with turmoil.
You dance with excess inventory to support your fleet, or gamble with an AOG because your component source dropped the ball.
Yelling and screaming gives you some relief, but you're still dancing.
And let's be honest, is dancing something you're good at?
If you're anything like me, dancing is not a pretty sight.
Millions of dollars are put into inventory to sit and gather dust just for "piece of mind."
It's either that or subject yourself to mediocre service levels.
So what are you supposed to do?
Aircraft component pooling
Don't worry, I'm not going to be your Wikipedia for pooling.
It's rather simple.
You need a part, you have immediate access to inventory that you didn't have to invest in, and you install the component on your aircraft.
That's a reduced definition, but you get the point.
Aircraft component pooling allows you to have access to an agreed upon inventory that you can tap in to at any given moment. Gone are the days of you having to invents millions in inventory.
Playing with inventory is not your strong suit and it's definitely not where you make money.
Aircraft component pooling has many benefits and since the average airlines spends 8x more than they have to to support their fleet, there's some serious strategies to reduce the inventory burden.
Time is money, and money is... money
How much is your departments time worth?
I'm sure once you get into the cost of time, the number is shocking.
Now add on the cost of inefficiencies and you'll get a real time picture of where the money is bleeding out due to operational inefficiencies.
Maybe it's chasing a supplier for shipment confirmation on a PO, babysitting an MRO for the OH of your units, or trying to resolve an AOG.
Whatever it is, everything has an opportunity cost.
If your department is spending too much time on processing orders there's something else they're missing out on.
What's their opportunity cost?
Posted in: business
