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.
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