MRO supply chain management is critical for the effective operation of any organisation, as it involves the restocking of production materials, spare components, and consumables. Yet challenges in such processes are unavoidable. Over the years of supporting MRO businesses’ supply chain, Locatory.com, an aviation marketplace for aircraft spare parts and repair capabilities, was able to identify the main pain points in this supply chain, which typically include lengthy approval processes, complex supply networks, incomplete data, order backlogs, and inventory accuracy issues. By addressing these issues, organisations can ensure a more reliable and responsive supply chain that meets customer demand.
According to Toma Matutyte, CEO of Locatory.com, a family member of Avia Solutions Group, one of the most common pain points of the MRO supply chain is the complexity of the supply network. “As components and materials become increasingly global, the complexity of the supply chain increases due to factors such as sourcing, pricing, lead time, and availability,” she explains. “This leads to difficulty in tracking and managing the supply network, increasing risks for organisations, and creating additional barriers for effective MRO supply chain management.”
Incomplete data presents another issue in the MRO supply chain, as it can cause price fluctuations, inventory deficiencies, and operational inefficiencies. Toma explains, “Incomplete data can encompass outdated records, missing documents, inaccurate asset details, standard operating procedure errors, and prolonged order delays. Without precise and easily accessible data, operations are at risk of disruptions and excessive costs due to inaccurate or inefficient orders.”
Order backlogs can also become a significant concern for some organisations in the MRO supply chain. Toma points out, “Order backlogs can be a result of factors such as overbooking, inadequate forecasting, inadequate capacity to meet demand, or poor order planning and execution, and can often lead to ordering and delivery delays. This, in turn, increases manufacturing downtime and the risk of fines or penalties for missed delivery commitments.”
Finally, inventory accuracy problems can also hinder operations. The CEO of Locatory.com states, “Organisations may face difficulties in effectively monitoring and managing their inventory due to errors in stocking, storing, and ordering components and materials, or due to a lack of accurate forecasting and planning for future needs. This can result in overstocking or understocking, leading to financial waste and production downtime.”
By tackling these challenges and crucial issues in the MRO supply chain, organisations can attain a more streamlined and cost-effective supply chain. Toma Matutyte, CEO of Locatory.com, comments, “With the proper implementation of organisational policies, enhanced communication, data accuracy, and the selection of appropriate spare component procurement methods, organisations can achieve enhanced operational flexibility, while decreasing costs and boosting customer satisfaction.”