Strategic agreements with suppliers are crucial especially when supply networks are disrupted and cost pressures are high. Aftermarket specialists are still seeing supply-chain challenges within the industry, predominately from tier one and tier two suppliers feeding into OEMs, according to Mat Punter, vice president of repairs at AerFin. He believes this causes sporadic spikes in demand for specific rotables as repairs build up at OEMs, especially if they are still waiting for delayed material.
AerFin keeps close ties with its OEM network and stirs through these challenges by taking pre-emptive action. “We have ensured additional stock for repair prior to the material issues biting and are building our stock with tactical purchasing, thus ensuring we can provide a continued, seamless supply to our operators and meet their requirements efficiently,” he states.
AerFin uses OEM partners to secure long-term flat rate pricing agreements, with market-linked escalations agreed, thus allowing it some certainty in pricing for the foreseeable future and a solid base to build business decisions for long-term planning.
“In these unprecedented times, the close relationships that AerFin has built with our OEMs and supply chain partners have enabled us to steady the rudder and navigate through the choppy seas of supply-chain issues and escalating costs,” Punter adds.
Meanwhile, AJW is investing in more inventory, systems and processes to develop mutually beneficial partnerships with suppliers. “Our customers know that we are continually investing in increased inventory, we’re reliable and we deliver,” comments Scott Symington, chief commercial officer at AJW.
Symington says supply chain pressures and the increasingly cost-conscious environment led AJW to look to various regions to drive the supply chain. “We saw the need for more EU based locations and potentially for an increase in the Americas. We have increased our North and South American contracts and with an established office and support hub in Istanbul, Turkey, we’re growing and expanding our reach in these regions to best support our customers,” he explains.
The situation forced AJW to consider third-party supply, in some cases, rather than, or alongside, OEM supply. “We drive a sophisticated pooling strategy with inventory placed purposefully around the globe, allowing easy access and distribution to regional customers. We strategically developed our stock management and logistics solutions to meet our customers’ operational demands,” continues Symington.
AJW uses statistical and probability-driven internal inventory optimization tools to manage its inventory and should there be market movements in these areas that require amendments to the variables in its tools, these can be adjusted quickly.
The ongoing supply chain difficulties within the industry continue to create challenges when looking to source critical components. Symington reckons the ability to shift geographical component repair supply, to meet the demands of the different regions is a balancing act, but having strong support from strategic partners globally helps to continue providing a reliable logistical support.
