Air Transport World

Air Transport World

Student's Name

University Affiliation

Air Transport World

Introduction

The use of inventory has been on the decline over the years. In many airlines inventory usage is low compared to the increasing number transport aircrafts. The company supply chain system is faced with many problems. These challenges are being caused by regulations, unskillfulness, invisibility and increase of other players who try to command the costs. The lack of a swift tracking and tracing systems and equipment for repair leads to expensive time-lines on whole of the aerospace supply chain. The company is facing up springing cost pressures. There is an increase in demand for part repair and overhaul compared to direct part replacement (Ashish, 2011).

The company uses the MRO (maintenance, repair and overhaul) inventory supply chain system. This inventory system is characterized with late deliveries from the suppliers, long order cycle times and high hastened-freight costs. In addition, the inventory system is faced with low inventory turn rates, high capital which eventually leads to high inventory obsolescence rates (Sahay, 2012).

In order solve the challenges facing the company, there is need to streamline the logistics handling processes by automation of information capturing and processing and also improving collaboration through availing advance information. In addition also visibility should be improved by making available information of parts and also by ensuring that the information is complete and accurate (Ashish, 2011).

Conclusion

The company's MRO supply chain is face with many problems