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Sky High Costs: Not Optimizing Aerospace MRO Expenditures Can Make Profits Crash

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Aerospace expenditures can be optimized better in the US
Insights
April 5, 2018

 

North America spends more on MRO than any other region and is forecasted to do so throughout the next ten years. The result for airlines is a general ledger filled with supplier expenses that are difficult to manage while focusing on their core business.

 

MRO is a complex mix of highly technical products and specialized services, so it can be difficult to understand and manage. Since it often entails a large spread of items over multiple categories, it can lead to unpredictable demand. While a large portion of MRO items are used once or twice every two years, many MRO items are also repeat purchases. This opens the possibility of negotiating contracts that incorporate incentives for the airline to commit to certain suppliers long-term. However, without access to industry benchmarks, it can be hard to know if they are obtaining the best possible rates and options that meet their actual needs.

Read the complete article to uncover how managing supplier spend can make expenses take a nosedive.

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