Aerospace manufacturing is a uniquely demanding industry. A single missing part can lead to costly delays — or even compromise staff and customer safety.
Optimizing aircraft spares inventory management helps you track parts to make sure every plane has what it needs to take flight. Here’s a guide to the benefits of efficient aircraft inventory management, plus some best practices and helpful strategies. Or, jump to the end to learn how Fishbowl streamlines inventory management with precision.
Understanding aircraft parts inventory management
Aircraft parts inventory management ensures that workers can access spare parts and supplies when needed. This process prevents critical problems like overstocks (which take up valuable space) and stockouts (which delay repairs and cost you money).
Key elements of aircraft parts inventory management include:
- Inventory demand forecasting: Accurately predicting future demand helps you maintain optimal stock levels. Forecasting tools analyze data from historical trends, maintenance schedules, and aircraft usage to make these predictions and identify the best number of spare parts to stock at a time.
- Airline spare parts procurement: After predicting inventory demands, you can procure the necessary parts. If you’re an aerospace manufacturer, you may also produce spare parts on your own.
- Inventory control: Manage stock levels as you go with inventory control. Use real-time tracking tools like barcode scanners to create accurate, up-to-date records that reflect what you have and what you need. Due to fast innovation, aircraft parts can also become obsolete quickly, so keep track of product lifecycles and ages. Promptly remove obsolete parts from inventory to avoid safety risks and storage inefficiencies.
- Order fulfillment tracking: Effective order fulfillment tracking keeps aircraft maintenance parts moving through the supply chain on time and in good condition. By monitoring orders from placement to delivery, you avoid disruptions, keep maintenance on schedule, and procure the right parts for each job.
- Compliant documentation: The aerospace industry is subject to strict regulations that govern safety and quality. Keep accurate records for each part, including airworthiness certificates, maintenance histories, and part specifications, to enhance accountability and compliance.
3 benefits of aircraft parts inventory management
Here are three major benefits of managing inventory, whether you’re a manufacturer, carrier, or middleman.
1. Reduced costs
With strategies for timely procurement and overstock prevention, you lower the amount of capital tied up when holding inventory — also known as carrying costs. Effective inventory management also minimizes the expenses associated with last-minute orders or emergency procurement. This benefit applies to any industry, but it’s crucial in the aerospace sector because the costs of parts and downtime tend to be higher.
2. Better operational efficiency
Solid inventory management supports operational efficiency by keeping the right parts on hand, minimizing downtime and accelerating maintenance, repair, and production processes — perfect for meeting tight supply chain schedules. A smoother workflow also enhances overall productivity and avoids costly delays.
3. Improved customer relationships
The stronger your inventory management, the easier it is to meet — and exceed — customer expectations. It equips you to fulfill and deliver customer orders on time, which builds your reputation as a trustworthy supplier or partner. In the aerospace industry, reliability and precision are paramount, and strong customer relationships lead to repeat business and greater long-term success.
5 common mistakes in aircraft parts inventory management
Here are some tips for preventing or solving some common mistakes:
- Inadequate forecasting: Inaccurate predictions can lead to either a surplus or shortage of parts, which both increase overall inventory costs and disrupt operational efficiency. To improve forecasting accuracy, use advanced tools and regularly update plans based on current data and trends.
- Lack of proper labeling and tracking: Poor labeling results in misplaced or misidentified parts, creating confusion at best and dangerous misuse at worst. To prevent these issues, use labeling and tracking technology like barcodes and inventory management software that provides real-time updates.
- Ignoring shelf life and expiry dates: Using outdated or expired parts compromises aircraft safety and can lead to compliance issues — not to mention hefty legal fees. Monitor shelf life and expiry dates diligently by tracking lot or serial numbers, and establish processes to remove and replace obsolete parts.
- Inadequate supplier management: Lackluster supplier relationships increase the likelihood of shipment delays and quality issues, which can disrupt maintenance schedules and slow down operations. Use supplier relationship management (SRM) techniques like clear communication to enhance delivery reliability, quality, and timeliness.
- Overlooking inventory audits: Failing to conduct regular inventory audits can lead to discrepancies between your records and actual stock levels. As a result, you might have more or less inventory than you think — which throws a wrench in both planning and operations. To manage inventory levels accurately, schedule periodic audits that match inventory records to physical stock.
5 strategies for efficient aircraft parts inventory management
Need to optimize your inventory practices? Here are five strategies tailored to meet aircraft parts inventory needs.
1. Adopt just-in-time inventory practices
Just-in-time (JIT) is an inventory control system where you keep minimal stock in storage and order parts only as needed. By reducing excess inventory, you lower carrying costs and minimize the risk of obsolescence.
This approach can be tricky to implement because it requires precise demand forecasting and reliable suppliers — otherwise, you face inventory shortages. But when done right, JIT can significantly enhance efficiency and lower costs.
2. Use ABC analysis
With ABC analysis, you categorize inventory into three groups (A, B, and C) based on importance. “A” items are the most essential, usually the most profitable or highest-selling products you offer. “B” items are less valuable but still important to your brand. And “C” items are the least critical parts in your inventory.
Analyzing items this way optimizes resource allocation and inventory control. You avoid running out of critical components or overstocking less important spare parts.
3. Optimize warehouse layout
In an aircraft parts warehouse, you might have a wide variety of parts — some of which are many feet long. An efficient warehouse layout maximizes storage space without hiding any parts in inaccessible places, lessening the time it takes to find certain items and minimizing handling errors.
4. Invest in employee training
Well-trained employees make all the difference when it comes to streamlining operations. Provide comprehensive training on inventory procedures, best practices, and manufacturing technology to give your team the skills and knowledge they need to accurately track and manage parts. Training also helps employees handle equipment safely and comply with industry protocols.
5. Implement advanced inventory management software
No matter how well-trained your workforce is, human error is unavoidable. To enhance accuracy and efficiency, supplement their efforts with advanced inventory management software. The best aviation inventory management software integrates real-time inventory data, automated ordering, and detailed reports to maintain more precise inventory control and seamless operations.
Elevate your aircraft parts inventory management with Fishbowl
Looking for inventory management software that can take your business to the next level? Start with Fishbowl.
Fishbowl’s advanced inventory management solutions help you manage aircraft parts inventory with precision and efficiency. It provides real-time tracking, accurate reports, and seamless QuickBooks integration to control inventory — and all areas of your operations — with ease.
Experience the benefits of top-tier inventory control with Fishbowl today. Schedule a demo to learn more.