Turning surplus parts into cash, Armando Filho features in the September issue of AviTrader

Director of Trading and Material Management, Armando Filho, features in the September issue of Avitrader sharing insight into how to effectively manage inventory.

For many businesses, inventory management can be critical to overall success. However, unlike MROs, demand for products can usually be easily managed and future demand accurately forecasted. Beyond that, inventory levels are not usually based on ‘worst-case scenarios’ and it is not usually a financial catastrophe if a part or product has to be put on back order with delivery due somewhere between two days and a week.

Armando Filho warns: “Companies need to consider OEM/supplier lead time, transit time, customs and other factors. If they don’t have the right tools to consolidate this information and control minimum/maximum stock and restocking levels, they are likely to experience shortages or excess inventory. While some deviations can be expected in any process these must be managed to minimise impact.”

Filho also advises on who would be best placed to sell surplus inventory “Airlines and MROs may not have an experienced team to manage such sales. If this is the case, it is better to have a consignment agreement with a specialist organisation like Vallair to manage such sales for you. This approach avoids diverting your team from their primary responsibilities for something that is already causing storage costs, instead of wasting time and money trying to manage the surplus inventory yourself. A specialist can manage the process on your behalf in a professional way.”

To read the full article, click here.

Article courtesy of AviTrader.