The aerospace industry is undergoing rapid transformation post-pandemic. In a race for survival in the new normal, MROs are fast adapting to the newer and latest technological advancements. A lot has changed in the MRO inventory management field pre-and post-pandemic. Jared Corey, Director of Supply Chain at AMETEK MRO explains how MRO supply chain has always been a challenging field, and how the industry continues to faceheadwinds of manufacturing capacity and labor shortages. He further discusses in detail the challenges faced and AMETEK’s expansion plans in an Exclusive Interview with Swati.k
Q – COVID19 pandemic completely changed the industry’s outlook towards inventory management. MROs are now well-prepared when it comes to inventory management. In AMETEK MRO what has changed as far as inventory planning goes, pre-and post-pandemic?
A– MRO supply chain has always been a challenging field, but the pandemic added a twist many of us have not previously experienced. Pre-pandemic inventory management models were based with an eye on the working capital impact and leaning on upstream manufacturers and parts distributors to reduce leadtimes and provide JIT type inventory services. AMETEK MRO looks now at more risk management, improved forecasting by commodity types, broadening and diversifying the supplier base, and extending the planning horizon.
Q – Can we safely say that Covid has actually given MRO parts management an opportunity to improve significantly?
A– There are still significant challenges to overcome in the near term. The industry continues to face headwinds of manufacturing capacity and labor shortages, which I expect to extend deep into 2022. AMETEK MRO will continue to drive operational excellence initiatives throughout our brands, from new product development and business sustaining solutions to improved inventory management techniques. Relationships with our business partners ― both customers and suppliers ― have always been central in aerospace MRO to build a supply chain that can adapt to the dynamic demands of the commercial maintenance cycle.
Q – Can you explain to our readers the importance of data in inventory management and how it helps to develop a strategic outlook and also to overcome market challenges?
A– Inventory Management revolves around data analysis, specifically accurate and timely data. This will be an even greater factor moving forward. The solid inputs of AMETEK MRO’s data will drive a plan enabling us to better predict future requirements and to reduce the risk associated with the inability to produce. Efficient data analytics develop inventory models that can help to optimize inventory, reduce costs, identify trends, provide efficiencies in the ordering cycle, and reduce risk to the business.
Q – Can you tell us one challenging situation that you have faced and how did you handle it?
A– The current state of the global supply chain provides daily opportunities as we call them at AMETEK MRO. Regardless of the situation, solid relationships with our customers and suppliers are always a good start. We are still trying to understand the full impact of how this pandemic has affected the manufacturing supply base. Managing through material shortages and growing manufacturing leadtimes will require thoughtful and strategic analysis and planning. Understanding requirements and communicating forecasted demand upstream will increase AMETEK MRO’s opportunity for success.
Q – Many MROs across the world are undergoing robust expansion to meet heavy customer demands. Any expansion plans on the cards?
A– Yes, AMETEK MRO is seeing heavy customer demand across its MRO segments. Besides PMA and DER development and increasing our capability lists, AMETEK MRO has multiple OEM heat exchange projects on the horizon. Additionally AMETEK MRO recently moved into a new wheel and brake facility in Paris, expanded its A350 repair capabilities in Singapore, was approved to sell PMA pyrotechnic parts in China, and in January AMETEK MRO signed an agreement to partner with Triman Industries to provide Triman’s military customers with a variety of MRO solutions. Yes, there is a lot going on.
Q – Any tips for our readers for effective inventory management?
A- It’s hard work. MRO folks are special people. This is a fast paced, solution driven industry. Everyday challenges are met head-on by establishing an understanding of the issues. There are no shortcuts to success.
Q – You currently are responsible for inventory control of our three North American businesses: B&S Aircraft, Drake Air, and Southern Aero parts. How do you manage to analyze the demand, forecast, and provision of materials? Are those the specific skill sets required to become an effective Inventory manager?
A– In the current atmosphere, it is essential to identify and mitigate supply disruptions, anticipate changing demand patterns, and constantly assess supplier performance. AMETEK MRO is constantly working to evolve our plan for every part (PFEP). I promote and rely on strategic thinking from my team so the inventory plan by line item is reviewed at every demand signal. Additionally, a strong SIOP process mates essential demand requirements from the customer with inventory acquisition and operational capacity. Understanding demand trends and supply limitations is the key.
Q – Any thoughts or suggestions to the youth who are currently pursuing their career in aircraft maintenance?
A– Aerospace MRO is full of great careers: Mechanics, Engineers, Finance, Supply Chain, Quality, Sales, Customer Service, and EHS. The people are great, and the work is rewarding.
