Improving the Supply Chain Knowledge – Developing Predictive Behaviour.
Managers of supply chains are challenged when it comes to awareness of future needs, this obliges them to default to reactive behaviour which inhibits opportunities to develop cost saving strategies.
Organization which do not have an effective understanding of the supply chain are forced into knee jerk solutions which often deliver far higher costs, for example repetitive AOG (Aircraft on the Ground) purchases.
If the organization is able to take control of the Supply chain they can reap significant benefits, by developing appropriate stock level and re order levels, by reducing the down time waiting for parts and materials.
Typically everyone accepts the need for improvements to the supply chain, however the multiple challenges are not given sufficient visibility and sometimes there is a lack of data which is relevant to the need to optimize the supply chain process.
Inhibitors may include a significant lack of data, in appropriate timelines, data which is available but not in the best format for the purpose it is required.
Data disconnects what Is required, when it is required and how much is required is not delivered in a timely way, plus the variability which is introduced by third party contracts can deal a heavy blow to the supply chain system.
Often supply chain managers find that they are making “guesstimates” and if caught short meet the financial penalties. When the time available to procure diminishes to immediate both the material or part costs together with the delivery costs rise considerably. As time to procure diminishes opportunities also become restricted, which can have negative impacts on down time.
So what is the solution ? Synchronization of the Supply chain !
To deliver a management system that has an empathy for the supply chain, to maximize the order time, to work within windows, to set up an internal process, where poor performance is allocated costs and therefore quantifiable in the bigger picture, to ensure the maximum co ordination possible of process and procedures.
A significant first step is to understand as many of the supply chain issues as possible, then to explore a full understanding of we have these issues, followed by an analysis of the various proposed solutions.
Service Level Agreements can be introduced to promote internal discipline with the development of feedback and Key Performance Indicators “KPI’s” to measure effectiveness.
Optimizing the Aviation Supply Chain is a part of the advanced production planning course delivered by Sofema Aviation Services for details please see www.sassofia.com or email office@sassofia.com
Tags:
advanced production planning, advanced production planning course, Aircraft on the Ground, AOG, Production Planning, Supply Chain, Supply Chain Knowledge
