Industry deep dive
In a conversation revealing the intricacies of aviation MRO supply chain management, Baptiste Miceli of Lokad and Rodrigo Pineda of MRO Holdings discussed the challenges of standardizing inventory planning across diverse operations. Pineda detailed efforts to harmonize procurement strategies and risk management for MRO Holdings, emphasizing the need for profitability in their standalone operations. Lokad's tailored software solutions aided in creating a unified material planning process, despite the volatility of demand in the MRO industry. Their event-based forecasting provided a clearer prediction model, leading to satisfaction and a commitment to ongoing improvement in managing the ever-changing supply chain landscape.
In a recent dialogue, Ricardo Alvarez Henao, Supply Chain Director at MRO Holdings, shared insights on the aviation MRO sector with Luciano Lisiotti of Lokad. Alvarez Henao emphasized the importance of anticipation and visibility in supply chain risk management, noting that inaccurate forecasts could lead to operational delays or surplus inventory. He also highlighted emerging trends in the MRO industry, including a post-pandemic bounce back, a trend towards partnerships, and the increasing complexity of demand. Alvarez Henao stressed the importance of embracing volatility and complexity, and the usefulness of probabilistic demand planning and forecasting. He concluded that while the MRO sector is more complex than the fast-moving consumer goods sector, the principles of leading a supply chain are similar.
Lokad is fortunate to collaborate with many significant clients across a diverse range of verticals. The challenges each client faces are unique and thus require tailored, programmatic, and automated solutions. Hear what some of our clients have to say about their quantitative supply chain solutions!
Effective MRO (maintenance, repair and overhaul) requires meticulous management of up to several million parts per plane, where any unavailability can result in costly aircraft-on-ground (AOG) events. Traditional solutions to manage this complexity involve implementing safety stock formulas or maintaining excessive inventory, both of which have limitations and can be financially untenable. Lokad, through a probabilistic forecasting approach, focuses on forecasting the failure or repair needs of every individual part across the fleet and assessing the immediate and downstream financial impact of potential AOG events.
Guillaume Adrien, VP of Supply Chain Design and Performance at Air France Industries, and Joannes Vermorel, Lokad's founder, discuss the complexities of aviation supply chain optimization. Adrien explains that the nature of the industry demands swift response to unpredictable circumstances, with safety being a top priority. The collaboration with Lokad and the use of predictive optimization technology has resulted in noticeable improvements in non-stock management and other supply chain areas. Emphasizing the ongoing transformation of Air France's supply chain, Adrien highlights the need for adaptability, curiosity, data-driven mindsets, and innovation in aspiring engineers. The goal is to create a digital twin of the supply chain for potential optimizations.
Joannès meets Fanny Kientz -the Vice-President of Engine Supply Chain and Assets at Air France Industries (AFI)- to discuss about the path of the maintenance/repair process and all the associated constraints. The challenges for aircraft supply chain are also talked through, with a focus on the balance between costs and operational efficiency or post-pandemic adaptation. Fanny highlights the important contribution of Lokad to release the potential from the data, allowing AFI to optimize the entire activity.
Aircraft components fail frequently and the costs of maintaining regular safety stock is prohibitive. What is the key to achieving the right balance between uninterrupted customer operations and having the right stock, at the right place at the right price? VP Assets and Outsourced Repairs of component division, Olivier Pelloux-Prayer, shares some advice on how to keep inventory at the best level while keeping customers satisfied.
More than 1000 flights from nearly 200 companies are able to take-off daily thanks to the repairs and maintenance carried out by Air France Industries. If you are curious to learn how such a complex supply chain program runs and how Lokad is coordinating efforts to optimize the process, Jacques Dauvergne- Senior Vice President Supply Chain at AFI- is happy to share all the aspects and insights of the story.
Patrice Fitzner decided a decade ago to translate his knowledge from the automotive industry to La Redoute, the second largest women’s clothing retailer. Patrice has been a major contributor in the creation and success of La Redoute’s ultra-modern logistics platform called Quai 30.
Exclusive interviews with Jacques Dauvergne (Senior VP Supply Chain); Fanny Kientz (VP Engine Supply Chain and Assets); Guillaume Adrien (VP Supply Chain Design and Performances); Olivier Pelloux-Prayer (VP Assets and Outsourced Repairs of Component Division); and Stephan Lise (Head of Prognos for Inventory).
While pricing and promotions sound as straightforward as offering the best price and maximizing margins, the equation becomes tremendously more difficult when factoring in the enormous size of the catalog, its diversity and seasonality.
As the second largest women’s clothing retailer, La Redoute’s teams manage a grand total of 18,000 references with a renewal rate of 70% to 80%. Pricing being the number one concern for online customers, the task of managing pricing policies for the entire catalog while maximizing margin is immensely complex if you factor in the evolution of legislation and promotional pressure.