Artificial intelligence is transforming aviation parts purchasing and supply chain management, which is crucial for balancing safety and profitability in the industry.
Fremont, CA: The aviation industry's unique feature that makes it very different from others is its dynamism and the demands made on it due to low-margin profits, complex organizational structures, and subtleties. Managing aircraft maintenance, repair, and operation in this complex setting proves too hard. These operations hinge on the critical necessity of timely acquiring needed supplies. Without this, carrying out some essential maintenance and repairs is simply not feasible. This paper investigates the state of the market for airplane parts acquisition and describes the traditional processes, the most important issues at play, and feasible alternative solutions.
Revealing an Ecosystem of Complexity
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
The aviation supply chain is a very special entity that forms the airline industry's foundation. The airline industry is very complex and capital-intensive, requiring high structural planning. Of all the commercial priorities, passenger safety is of utmost importance, calling for a great need for strict conformity with regulatory requirements. This maintenance is again prioritized into two categories: scheduled and non-scheduled maintenance. Both depend on material and resource availability, including intrinsic aircraft parts.
Logistic Roles and Traditional Procurement: The Old Ways
The procurement and logistics that ensure that all the needed supplies, including tools, ground support equipment, and aircraft spares, are in place form the lifeblood of airline operations. The procurement cycle comprises making a buy indent by the maintenance group, which is only one part; the process is not complete until and unless suppliers are eventually selected, considering lead time and price.
However, this well-tested practice has some weaknesses. Constraints, including a narrow supplier base, labor-intensive processes, and demanding resource requirements, worsen the challenges airlines and companies that provide maintenance, repair, and overhaul (MRO) face. Bulk buying also results in unnecessary capital, thus tying up inventory.
A New Dawn: AI Changing Procurement
The airline industry is slowly resorting to artificial intelligence to streamline the procurement process in response to these radical changes. AI stands at the threshold of a brand new era for the aircraft and maintenance repair industry, in that it has the opportunity to totally transform it using its ability to speed up procedures and supply support for strategic decision-making.
AI can avert delay and overrun in procurement by applying real-time data and analytics. Some of the leading-edge capabilities in this technological advance include the automation of quote analyses, the ability to place buy orders automatically, the ability to source from a considerably greater number of suppliers, and system integration.
