Inventory Management for
Aviation Parts
Welcome to our presentation on inventory management for aviation
parts. We'll explore best practices that ensure safety, regulatory
compliance, and cost efficiency in this critical sector.
MR
by Michael John Reyes
The Aviation Ind ustry
Landscape
$120B 13%
G lobal MRO Market YoY Growth
Total value in 2024 Annual increase in parts demand
3
Key Players
Airlines, OEMs, and MRO providers
Unique Challenges in Aviation Parts Inventory
Obsolescence Risk
High-value, slow-moving stock
Regulatory Complexity
Strict FAA/EASA traceability requirements
Extreme Diversity
350,000+ unique part numbers per airline
Types of Aviation Inventory
Rotables Expendables Consumables & Critical Spares
Repairable components like landing Single-use parts such as bolts and Fluids, seals, and emergency parts
gear that cycle between aircraft and filters that are replaced during kept on hand for immediate needs.
repair shops. maintenance.
Regulatory Comp liance Imp eratives
Certification Requirements AD /SB Tracking
FAA/EASA documentation for all Airworthiness Directives and
parts Service Bulletins
Traceability
Audit Preparedness
Full chain of custody documentation
Complete visibility of part histories
The Cost of Poor Inventory Management
Aircraft on Ground (AO G ) Inventory Write-offs Regulatory Penalties
Each hour of unplanned downtime Average airline faces $2-5 million in Missing documentation can trigger
costs airlines $10,000-$30,000. annual obsolescence losses. substantial fines.
Delays cascade throughout the Expired parts represent wasted May lead to operational restrictions
network. capital investment. or certification issues.
Inventory Control Methods
O verview
Just-In-Time (JIT)
Reduces stockholding through precise delivery timing
Min-Max Systems
Maintains inventory levels between predetermined
thresholds
KAN BAN Tracking
Visual signals trigger replenishment automatically
D emand Forecasting in Aviation MRO
Predictive Analytics Pattern Recognition AI Imp lementation Benefits
Advanced algorithms analyze Systems identify seasonal demand Machine learning reduces out-of-
historical flight data and failure fluctuations based on flight stock situations by 23% on average.
patterns to predict future needs. schedules.
Improves capital allocation through
Component reliability metrics inform Fleet aging metrics determine smarter purchasing.
stocking decisions. increasing repair rates over time.
O p timiz ing Inventory Turnover
Set Benchmarks
Target 1.5-2.5 turns per year for rotable components.
Establish performance metrics against industry standards.
Identify Slow Movers
Flag parts with no movement in 24+ months.
Develop disposal or exchange strategies for inactive stock.
Imp lement Pooling Programs
Join parts sharing networks to reduce individual holdings.
Leverage collective resources for less-common components.
Technology Solutions
ERP Systems Real-time Mobile
Dashboards Applications
Integrated platforms
like SAP, AMOS, and Visual management Hangar floor access
IFS connect tools provide instant to inventory data
inventory with visibility into stock reduces search
maintenance levels and locations. times and improves
planning. efficiency.
Automation & D rones in Warehouse O ps
Dro ne Cycle Counts Robotic Picking
Automated drones complete inventory verification 80% Automated retrieval systems reduce errors and improve
faster than manual counts. speed.
They access high shelves without lifts or ladders. They operate 24/7 without fatigue or safety concerns.
Supplier Collaboration & Parts Pooling
Global Pooling Benefits
Airlines reduce spare part investments by 15-30% through shared
inventories.
Industry Leaders
Satair and Lufthansa Technik operate successful parts pools serving multiple
carriers.
AOG Response Networks
Strategic partnerships ensure rapid access to critical components during
emergencies.
Cross-Operator Efficiency
Shared inventories optimize regional stocking for global operators.
O bsolescence Management
Lifecycle Tracking
Monitor long-lead and legacy parts throughout their useful life.
Proactive Reviews
Regular demand analysis identifies parts approaching end of service.
Timely D isposal
Set trigger points for redeployment, sale, or scrapping decisions.
D igital Twins
Virtual modeling forecasts when parts will reach end-of-life status.
Inventory Security & Counterfeit Mitigation
Authentication Protocols
Blockchain pilots launched in 2023 verify part provenance
PMA Risk Avoidance
Protocols prevent unauthorized Parts Manufacturer Approval items
Alert N etworks
Industry-wide systems share information about
suspicious parts
KPIs for Aviation Inventory Performance
Key Performance Indicators drive continuous improvement in aviation inventory management. Top metrics include fill rate
(target ≥95%), carrying costs, stock-out frequency, and AOG incidents.
Case Study: Major Airline
Turnaround
Delta's AI/ERP Financial Impact
Implementation
$200 million in documented
Five-year digital transformation savings over 5 years.
of inventory processes.
Reduced capital tied up in
Integrated artificial intelligence excess inventory.
with enterprise resource
planning.
Operational Improvement
30% reduction in Aircraft on Ground (AOG) events.
Enhanced reliability through predictive inventory policies.
Case Stud y: Low-Cost Carrier Innovation
Southwest's RFID Revolution
Complete warehouse overhaul using RFID technology to track
all inventory movements.
Integration with existing maintenance systems created
seamless workflows.
• Implemented in 12 maintenance bases
• Tagged over 100,000 parts
• Trained 1,500 technicians on new system
Measurab le Results
50% reduction in annual stock discrepancies.
Eliminated most manual counting processes.
Improved fulfillment speed for critical components.
Future Trend s in Aviation Inventory
Blockchain Traceability
Boeing/SkyThread 2024 pilot programs create immutable part histories.
Distributed ledgers ensure tamper-proof documentation.
Cloud -Based Management
AI-driven systems optimize global inventory placement.
Real-time analytics inform stocking decisions.
3D Printing Revolution
On-demand manufacturing reduces physical inventory needs.
Digital inventory models store designs rather than parts.
Conclusion & Key Takeaways
Balanced Ap proach Technology Adoption
Effective inventory Embracing digital solutions
management balances delivers measurable
safety, profit, and improvements in
compliance requirements. performance.
Cross-Functional Collaboration
Success requires coordination between procurement, maintenance,
and operations.
Thank you for your attention! We welcome your questions about
implementing these strategies in your organization.
