Client Situation

Our client operates one of the world’s largest and most successful C130 aircraft Maintenance and Repair Overhaul (MRO) businesses. To keep pace with rising demand they needed to accelerate aircraft Turn Around Time through their facilities. Our client had identified improved supply chain management as one of the key factors to reaching these goals

Through a short assessment phase Aczel identified a number of critical areas for supply chain improvement when compared to leading practice. At the same time, through analysis of 15 years of live data, we defined the potential benefits from implementing the required changes

Approach

We fielded a team with decades of supply chain expertise coupled with cutting edge analytics required to make sense of millions of lines of supply chain data going back 15 years

Over a nine month period Aczel implemented a new supply chain operating model and associated organisation design, management metrics and analytical tools. We ensured this new supply chain model matched the ERP environment the client was implementing at the same time

Key areas of implementation:

  • Early visibility of demand (including customer involvement in the process)
  • Aggregated demand/supply balancing
  • Strategic supply base management
  • Inventory management
  • Delivery of materials to point of use
  • Analytics with embedded machine learning

Results

Despite operating in a Covid environment with virtual workshops and occasional visits to our client’s facilities, results are dramatic:

  • Demand visibility of 12 weeks compared to the previous 2 weeks
  • Much better control over materials, reducing the need for expedited procurement
  • Planned inventory requirement lower despite the increased demand
  • Stabilised demand enabling better supplier negotiations

Summary

Our client now has a highly competitive supply chain. Investments in analytics and key organisational positions will yield further gains. With the new ERP system fully on stream the supply chain will be a significant differentiator when competing on the global stage

“Aczel has given us improved control over the supply chain — a major drive of operational success. Benefits are already accruing and we will continue to drive further gains”

Managing Director, MRO business

Your contact

Dean Gilmore

Director

dean.gilmore@aczel.org

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