How OEMs Are Addressing the Demand for Aviation Spare Parts
As the older generation of airplanes is gradually replaced by newer ones, the demand for Aviation Spare Parts also increases. OEMs often see this area as a high profit center, with up to 50% of sales coming from this segment. However, a lack of available information or alternate sources of supply can lead to late phase of new product introduction. To solve this problem, it is important to understand the various ways in which OEMs are addressing this issue.
The most obvious change in the aviation aftermarket is the increasing availability of surplus aircraft parts. According to IBM, the industry is worth over $3 billion a year and is growing at a 1% annual rate. However, a large portion of suppliers is unaware of the true value of their aircraft parts and are underestimating the costs of replacements. Therefore, the industry must improve its visibility to avoid the problems caused by non-availability of aircraft parts.
The availability of surplus aviation spare parts has also had a positive impact on the market. Today, the market for aviation spare parts is estimated at $3 billion a year and is growing at 1% annually. While many suppliers are unaware of the real value of their spare parts, the growing number of available parts has created new business opportunities for all industry players. With these new opportunities, it is imperative for manufacturers and suppliers to improve their supply chain visibility.
Despite the challenges in the aviation industry, the industry is growing at a steady rate. A study by IBM shows that airlines spend about $200 per flight hour on spare parts. A Research and Markets study suggests that airlines suffer from higher AOGs because of a lack of availability of spare parts. Furthermore, nearly two-thirds of respondents in a survey by the Aberdeen Group said that improving their visibility of their supply chains is a top priority.
A major challenge faced by the aviation industry is the lack of transparency. The aviation industry is notorious for not sharing its data with the public. As a result, it is vital to provide a detailed supply chain overview to consumers. By improving visibility, companies will be able to better manage the supply chain, which will ultimately reduce costs and increase service levels. And the results are impressive. By improving visibility, companies can reduce the cost of aviation spare parts and maintain higher profitability.
Aircraft-related spare parts are essential to flight safety and efficiency. The Air Data Computer, for example, calculates aircraft speed and altitude. It also measures TAT. Its information is transferred to the Air Data Computer. Receivers and transmitters ensure communication between aircrafts. The aviation industry faces a variety of challenges every year. Increasing capacity and demand have created a huge demand for Aircraft Spare Parts suppliers. So, how can suppliers better serve the aviation industry?
