Common forecast methods that work well for finished goods are often ineffective when applied to spare parts as demand for MRO spare parts and materials is often highly intermittent and erratic. This makes is difficult to forecast MRO and spare parts.
For production-based organizations, the failure of critical equipment can spell disaster. Production downtime causes supply shortages and potentially lost sales of finished goods. The impulse preventative action is to pad safety stock, especially for critical parts. However, doing so indiscriminately can explode the number of SKUs on hand, create an overage of high-cost parts, and raise carrying costs to unsustainable levels. Keeping low stocking levels with fingers crossed runs the risk of production stoppage.
A world leader in the design, manufacturing, and service of aircraft engines needed to forecast MRO and spare parts used in their enterprise maintenance plans.
They faced challenges such as their maintenance plans often including the sporadic need for spare parts, and they forecast demand for MRO and spare parts manually, which became overwhelming and prone to error.
Vanguard Software’s AI-enabled forecasting ensures their predictions are accurate and reflect statistical patterns in spare part consumption.
With Vanguard Predictive Planning™, they were able to:
- Automate MRO and Spare Parts Forecasting
- Reduce inventory while maintaining service levels
- Optimally price new maintenance contracts
Download this case study today to see how we were able to automate this process with Vanguard Predictive Planning for our aerospace client.