Driving Procurement Savings and Inventory Reduction Through Supply Chain Optimisation for a Leading MRO Provider

The Provider is a leading aircraft Maintenance, Repair & Overhaul (MRO) business operating a multi-hangar network that services narrow-body and wide-body fleets for its parent airline group and third-party carriers. Its supply chain organisation manages procurement and inventory for thousands of rotable, repairable, and consumable parts SKUs across engineering, planning, and warehouse functions supporting base and line maintenance.

• Fragmented procurement across categories and hangars, with limited category strategy or spend consolidation
• High inventory levels across rotable, repairable, and consumable parts, with excess and obsolete stock tying up working capital
• Limited visibility into total spend and supplier performance across the procurement base
• Inconsistent purchasing practices and contract terms across sourcing categories, leading to price variance for similar parts
• Reactive replenishment driven by maintenance urgency rather than demand-driven planning

• Parts and materials typically account for 25 to 35 percent of total MRO operating cost, making procurement one of the largest addressable cost pools in aircraft maintenance (approx., industry benchmark)
• Excess MRO inventory is a common industry challenge, with aviation parts inventories often carrying 20 to 30 percent in slow-moving or obsolete stock when not actively managed (approx., industry benchmark)
• For a multi-hangar MRO operation, procurement leverage compounds with scale, as consolidating category spend directly strengthens negotiating power and supplier terms
• Left unaddressed, working capital continues to build in unproductive inventory while missed consolidation opportunities keep unit costs elevated

• Spend-Cube Analysis & Category Segmentation
• Category Management Strategies (Rotables, Repairables, Consumables)
• Demand-Driven Inventory Optimisation Model
• Supplier Rationalisation & Preferred Vendor Framework
• Renegotiated Contract Terms for Priority Categories
• Procurement & Inventory KPI Dashboard
• Phased Implementation Roadmap with Quick-Win Priorities

12–18%

Reduction in procurement spend across priority categories (approx.)

15–20%

Reduction in inventory value held across rotable and consumable parts (approx.)

30+

Categories consolidated under a formal category strategy (approx.)

2x

Increase in supplier negotiation leverage from consolidated spend (approx.)

20–25%

Reduction in slow-moving and obsolete stock (approx.)

100%

Category strategies deployed across all hangars post-implementation

Category management discipline and demand-driven inventory practice now connect procurement, planning, and engineering around a shared view of spend and stock, extending the benefit well past the initial savings captured. Consolidated supplier relationships and a live performance dashboard give the Provider a foundation to extend the model to additional categories and hangars.