5 Factors for success in Aviation Logistics

Aviation logistics is very dynamic and constantly changing sector. There is never a dull day in aviation logistics as things can change very fast. A clear supply chain strategy towards aviation asset management is a must for success. We highlight 5 aspects to monitor closely for successful aviation logistics.

Asset Management at heart of KPIs

The aircraft is the biggest and most expensive asset and all efforts must be made to make sure the aircraft is always operational. Downtime should be planned much in advance and careful coordination must be established. This is only possible with common dashboard with KPIs that include Asset Management as the core objectives. Asset Management software/ERP software can be used to create a central platform to integrate the needs and plan accordingly. The KPIs must be shared between engineering, maintenance and logistics team so everyone has eye on the right KPIs. Logistics team’s focus generally is on costs or vendors rather than the asset management KPIs.

Clear Team Roles & Responsibilities

Team roles roll down from a clear and defined This is the single most important aspect to achieve success for the logistics. Each team member must know his role well and be trained to execute his role. 

Costs are important but not the sole metric

Too often supply chain or accountable managers set costs as the main parameter to measure success of their supply chain. However in Aviation, there are often cases when parts are required on AOG basis. Then availability trumps costs and often accountable managers will pay 2-3 times the logistics costs to get the parts to their warehouse. This throws all the cost KPIs out of the window. 

Clear Policy for Government Issues

This is most important aspect from an Indian perspective. With GST, Customs, Income Tax, DGFT, DGCA, BMC and other government agencies having significant effect on logistic operations, It is critical to have a clear policy for handling government matters. Most companies do not plan for these matters and end up fire fighting. This creates a lot of stress for employees as they have to deal with uncertain situations with government officers.

Keeping Buffers

Today’s supply chain extremely vulnerable to lot of factors. The volatile global markets affect supply chain. It is quintessential to have buffers for most critical elements. It essential to figure out (either by value chain analysis or time-cost analysis) which business functions/parts/ processes are key to the business and make contingencies for these. This way the team is mentally as well as operationally prepared  to handle disruptions.