What's Happening?
Aviation component maintenance providers are facing ongoing supply chain challenges, impacting turnaround times for repairs. Companies like AJW Group and AAR are experiencing delays due to shortages in parts and materials. To mitigate these issues, they are increasingly relying on used serviceable material (USM) and substantial serviceable inventories. The extended service lives and delayed retirement of aircraft have tightened the supply of USM, but have also boosted the repair side of the business. AJW Group is investing in inventory and utilizing digital tools to predict demand and ensure better provisioning, while AAR is developing repairs and using USM where possible.
Why It's Important?
The supply chain disruptions in the aviation industry highlight the need for adaptive strategies to maintain operational efficiency. The reliance on USM and investment in inventory are crucial for keeping fleets operational amidst part shortages. These challenges also emphasize the importance of technological advancements in predicting demand and optimizing supply chain management. The ability to adapt to these disruptions is vital for maintaining service quality and customer satisfaction in the aviation sector.
What's Next?
As supply chain challenges persist, aviation maintenance providers are likely to continue investing in technology and inventory to enhance their resilience. The use of AI and digital tools for demand forecasting will become increasingly important in managing supply chain complexities. Additionally, the industry may see a shift towards more sustainable practices, such as increased use of USM, to address both economic and environmental concerns.
