18 aerOSPaceManUFactUring | nOveMber 2009
While waste inventory in the supply chain
is undesirable regardless of the sector a
business operates in, such inefficiencies
in the aerospace and defence industry can
cause serious repercussions if you don’t
get the balance right!
Get the
balance right
F
or many, embracing a lean But whether or not it is possible to in the supply chain can really mean
approach by optimising achieve this in practice, whilst under the the difference between life and death,
and streamlining inventory constraints posed by the aerospace and and that’s something that just can’t be
management represents the first step in defence (A&D) sector, is debatable. compromised.”
the process of turning a cost centre into Demonstrating value for money to Ensuring customers get the biggest
a profit centre and exceeding customer customers and ensuring tax payers’ money bang for their buck without risking
demand. But identifying where the is spent wisely requires A&D suppliers service levels means weeding out
problems first exist presents a challenge, to eliminate waste wherever possible, but the waste and fine tuning the entire
considering the variables associated with security issues around obtaining long term inventory management process.
spare part provision and pre- and post- usage forecasts mean it can be a tough According to Graham Best, director
assembly line stock – not to mention the balance to get right. and co-founder of specialist consultancy,
obstacles unique to the sector. “The data needed for scheduling in an The Service Business, discovering
Inefficient inventory management A&D setting is often highly sensitive, how your business is performing and
can be disastrous for front line military which can make planning difficult identifying the areas of waste – and
personnel, so the need to streamline and often means meeting a variable benchmarking current performance
processes and operate a zero tolerance demand at short notice and under tight against the ideal – are the building blocks
approach to waste is more than just a deadlines,” explains BAE Systems’ head of tangible inventory optimisation.
‘nice to have’ – it’s a critical investment. of supply chain for support programmes, “It’s easy for businesses to get stuck
But is it possible to achieve this level of global combat systems – vehicles, in a rut when it comes to inventory
efficiency in reality? Does implementing Graham Gall. “Nevertheless, it’s an management and it’s sometimes difficult
the latest scheduling and optimisation essential part of the service we provide to see the wood for the trees when
software represent a quick fix or a long and, whereas in other sectors the you’re dealing with the same problems
term solution? consequences of an inefficient inventory day in and day out,” he states. “Taking
Having the right part available, at management structure will mean certain a step back and looking at the bigger
the right time and in the right place is products aren’t on the supermarket picture, questioning the efficiency
what the supply chain strives to achieve. shelves in time, in A&D, inefficiency of existing processes, people and
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