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LFA AeroParts Supply Chain

LFA AeroParts Supply Chain

The LFA Aeroparts Supply Chain project provides the logistics audit technology of Logistics Field Audit™ for companies operating in the aeroparts industry. Implementation of the logistics technologies within the aero parts supply chain management enables essential cost reductions, making the business processes more effective, increasing the quality of services and consequently, increasing market share.

 Logistics Audit

Logistics audit uncovers hidden logistics value and creates a plan for optimization of the logistics function via improvements in functional efficiency and logistics system management, integration and the close co-operation of the supply chain parts. A logistics audit analysis is provided in a manner consistent with the way CFO’s and other corporate executives make investment decisions.

Logistics Field Audit™ technology is an effective management tool, widely used by leading global companies. It ensures a significant reduction in the time between gaining an objective assessment of the functioning of a company’s logistic system, developing recommendations and introducing innovations. It is achieved through the involvement of logitics-auditors into the supply chain management process.

 Supply Chain in Aeroparts Business

LFA Aeroparts  Supply Chain is a project aimed at implementing Logistics Field Audit™ technology within the aeroparts industry. While elaborating this project, special attention was paid to the peculiarities of the supply chain in aeroparts businesses:

  • Close control of aero parts safety;
  • large amount of SKU’s (more than 100 thousand);
  • variety of logistics parameters (size, package, weight, etc.);
  • identification difficulties and errors;
  • warehousing peculiarities;
  • singular piece orders picking;
  • irregular cycle of purchase, long-term delivery;
  • OEM quality control;
  • specific features of reverse logistics;
  • peculiarities of planning.

 Achievement of clarity in the Supply Chain
The LFA process studies the three major sources of uncertainty in the aeroparts business Supply Chain and allows for the determination of the optimization process of the logistics functions.

Supply uncertainty. This could result from poorly performing suppliers or an inability of a company to `order` aero parts efficiently. This can be evaluated by looking at supplier delivery performance, time series of aero parts orders placed, call offs, deliveries from suppliers, lead-times, supplier quality reports and aero parts stock time series.

Demand uncertainty. This type of uncertainty is associated with a specific customer in relation to schedule variability. It is an indication of how well the company meets its customers’ requirements. Developing a time series of customer’s aero parts orders, call-offs, aero parts deliveries and forecasts identifies this uncertainty.

Control uncertainty. This affects the company’s ability to manage its activities and to transform customer orders into supplier requests to deliver. It can be investigated via the time series of customer requirements for aero parts and supplier requests for aero parts to deliver to a workshop or a point of sale.

 LFA technology for Aeroparts Business
LFA Quick Scan
– is an intermediate cost effective logistics tool aimed at diagnosing an aeroparts company’s immediate areas for logistics improvement. The process takes about twelve days and logistics auditors involve themselves in understanding a general overview of the aero parts supply chain, logistics operations and logistics costs. At the end of the Quick Scan the aeroparts company receives a list of initial improvements to be implemented and LFA can put these into practice.

LFA Full Audit takes the investigation of an aeroparts company’s logistics operations to a higher level. What is unique about LFA is that the LFA logistics experts are incorporated into the client’s supply chain management structure for between two and three months. Through this methodology the full picture of the aero parts supply chain within the structure can be evaluated, including hidden logistics costs across departments and hidden logistics value added. At the end of a Full Audit it is expected that far-stretching efficiencies and economies will be put in place, of immense value to the running of the client’s operations and costs.

LFA Warehouse Perfect – a complete set of solutions for optimal management of aero parts stocks. LFA-experts can assist in designing an optimal aero parts warehouse structure, developing warehouse operational schemes, developing requirements for warehouse equipment and its suppliers, and installing warehouse management systems. In addition, they can help to create organizational charts, to develop and to document the functional responsibilities of staff, and to monitor the launch of warehouse operations.

LFA Complete IT Solutions. LFA experts offer aeroparts companies assistance in choosing optimal logistics software (Russian solutions, adopted Western systems, integrated logistics blocks of ERP system), and assistance in developing the requirements for creating customized in-house logistics software solutions.

 Effectiveness in Aeroparts Supply Chain
The implementation of LFA technologies will result in increased effectiveness of the logistics function of an aeroparts company:

  • increase of effectiveness and flexibility in «supplier - consumer» interaction on the basis of self-control, using SCM-technology and the logistics standards;
  • Minimization of manufacturers, suppliers and consumers costs, integranted into the supply chain;
  • forming the system of aeroparts after-sale service through the logistics providers development;
  • effective supply chain management of aero parts by the methods of logistics audit, diagnostics and certification.

Supply Chain management should be carried out not only by the technical production specialists, but also by the logistics specialists, managing the integrated materials flow.

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