You are on page 1of 2
Summary of Issues * Comply with different statutory regulations * Manage the right inventory level © Minimize inventory holding costs * Enhance quality level and component performance * Develop strong partnership with critical and non- critical suppliers, repair shops and outsourced 3PLs * Cope with the large amount of repair orders * Deliver spare parts to designated more cost effectively Recommendations © Tackle high demand variability — Alignment of maintenance plan and forecast * High inventory and slow stock turnover — Negotiation of return to supplier and form tender requirement — Clearance on dead stock to other airlines or maintenance companies —No stock keeping for slow moving and non-critical items © Cut down the number of suppliers by tendering and open bidding * Build up long term cooperation relationship with suppliers —PMA and consignment —Vendor-managed inventory (VMI) — Shared system for information flow with suppliers © Form a maintenance company to support more airlines to achieve economies of scale and better forecast