Solving Aircraft on Ground (AOG) Challenges with Vendor Managed Inventory

Aircraft on Ground (AOG) is a common and costly problem for an MRO firm.

In the case of an airline, each flight missed because a plane is not cleared to fly is revenue lost. There are also costs associated with canceling and rescheduling other flights that depend on the grounded airplane being in the air.

“Every single day that a plane is unserviceable at an airport is huge in both profit and business,” said Jamie Barron, Vice President of New Source Corporation.

With so much business at stake, MRO firms cannot wait for repair parts to arrive. Unfortunately, many must because they do not have the needed parts on hand nor do they have a supplier that can get the parts to them quickly.

“We maintain a large inventory. This allows us to be more agile and proactive in our approach when assisting customers with AOG challenges,” Barron said. New Source Corporation has processes in place to quickly deliver aluminum extruded products to meet even the most urgent AOG needs.

Overcoming AOG with VMI

New Source Corporation preemptively solves supply chain issues largely through its vendor-managed inventory services. Vendor-managed inventory services help an MRO firm resolve its AOG problems quickly by getting the right parts at the right time.

“Solving AOG challenges is about having a supplier that is proactive and has the knowledge and intuition to have the right parts in stock,” Barron said.

Though many suppliers of aerospace metals only stock enough materials to fill orders as they are completed, New Source Corporation keeps as much stock as possible so that it can ship parts quickly. New Source Corporation also stocks a wide range of product types so that it can meet any need.

New Source Corporation identifies parts to stock as part of its vendor-managed inventory services. “We see the value in holding these parts in stock,” Barron said. “We know that planning for unforeseen situations is important to keep your aircraft in the air.”

If New Source Corporation does not have an item in stock, it works with its supply-chain partners to get it and ship it immediately so that a grounded plane is cleared to fly sooner. It ensures that all parts meet quality requirements and exact specifications.

“Many repair shops call us and say they desperately need a part that day,” Barron said. “This is where our quick turnaround time saves customers money and business.”

New Source Corporation has locations along the West Coast and East Coast and ships parts fast to reach customers quickly. With a facility within just a few miles of Orlando International Airport, New Source Corporation has developed a reputation for quickly providing parts to MRO firms nearby so that AOG issues can be immediately resolved.

New Source Corporation also helps customers avoid waiting for parts by planning ahead to ensure that they have enough stock on hand. In using vendor-managed inventory services, New Source Corporation customers find that AOG becomes a less common and less costly problem.

Do you still have questions about vendor-managed inventory? Contact us today! New Source Corporation will be happy to assist you in finding the product that fits your needs.

November 17, 2021

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