1. Effective and Efficient Inventory Strategies
Moderated by:
Klaus Mueller Senior Advisor, Aerospace & MRO Practice  ICF International
Effective and Efficient Inventory Strategies
MRO Europe – 14 October 2015 – London, UK

2. Moderator: Klaus Mueller
Panel
Track Supply Chain & Logistics, Session 8
Wednesday, 14th: 11-12:00
Brad Sandford
Andy Schmidt
Boris Wolstenholme
Moderator: Klaus Mueller

3. Agenda Bios Brad Sandford Andy Schmidt Boris Wolstenholme
Director, Sales & Marketing for EMEA, UTC Aerospace Systems
Bradley Sandford is the UTC Aerospace Systems (UTAS) Regional Director of Sales and Support for Europe, Africa, and the Middle East. Bradley is part of the UTAS Customer Service Leadership team and is bsased in Charlotte, North Carolina. 
SVP, Supply Chain, AAR
Andy Schmidt, Sr. Vice President of Aviation Supply Chain, oversees Airinmar, an independently operated company of AAR.  Andy is also responsible for managing AAR’s external spend on technical parts and repairs, including developing and managing relationships with suppliers.  Prior to joining AAR, Andy was a partner in Oliver Wyman‘s Aviation practice
CEO, AJW Group
Boris joined AJW as a team member of the Sales Department. He progressed quickly into the role of Divisional Sales Manager and further to the position of Commercial Director. He was appointed Chief Executive of AJW in 2009, where he continues annual double-digit growth of the business and ensures continued flexibility and outstanding service for AJW customers.
Andy Schmidt
Boris Wolstenholme

4. future
More than Aircraft Ordered (8-9 years production) Fleet doubles to till 2035
„Stable planning base“
Backlog
>9 yrs production
Airbus
6.336
Boeing
5.739
400
W/B
2.766
N/B
10.321
RJs
920
Embraer*
515*
112
Irkut
175
223
Bombardier
338
Others
169
Source: Ascend, Airbus, Boeing, Bombardier, Embraer, COMAC; Irkut, * no Exec Jets included, September 2015

5. The battlegrounds
ICF believes there are three key battlegrounds that will determine the future of the Aftermarket
Who controls the operational data?
Who controls the workscope?
Critical to success in market participation and in gaining operational feedback for design and reliability improvement
Critical to success in driving parts choice and aftermarket margins
Who controls the assets?
Critical to success in growing integrated service market

6. Session Plan: 11.00 – 12:00 Not shown to audience
QUESTIONS
Not shown to audience
Session Plan: – 12:00
11:00: 5 min Introduction panelists and subject
1 min poll: Who in the audience is from an Airline? Who is operation an inventory stock?
11:05: min for Questions: Market Situation
11:25: After 20min: I will ask the audience for Qs?
11:30: min for Questions: Future
11:50: I will start to ask the audience for Qs?
All questions from me are for all panelists and can be answered be every one individually – if the positions are controvers – pls discuss !

7. Market Situation (20min)
QUESTIONS
Not shown to audience
Market Situation (20min)
Today
Market Situation: 75people; Compay and title list
Reviewing different options for inventory management and assessing airlines management of inventory and repair against total care programs.
What are the key drivers to optimize Inventory for Airlines?
Who takes the risk of Inventory? Airlines, MROs, OEMs?
What are the advantages and disadvantages of Total Care Programs?
Which are the key trends of inventory management?
Which are the key items of inventory an airline should have in their inventory? – LRUs? (Klaus to find airlines in the audience)
Are efficient logistic supply processes able to lower stocks?
Spare Qs (to fill the 20min)
Which products are at the market today? OEM driven, Independent driven and Airline Shop driven?
Is there a „golden rule“ of inventory management?

8. Commercial Aircraft Launches during 70 Years:
FUture
15 June 2012
Market Outlook 2012
Commercial Aircraft Launches during 70 Years:
Many new programs Entry into Service during this decade
Efficiency / Fuel / Noise, New National Entries
“Re-Engineing” ->
NEO-Generation
Consolidation,
Global Supply?
1950
1960
1970
1980
1990
2000
Aircraft
Develop-ments
2010
2020
EIS
A330NEO
737MAX
A320NEO
CSeries
MS-21
C919
A350
/-900
747-8
777X
An-224
CRJ1000
SSJ100
ARJ21
MRJ
E175-E2
E190/195-E2 17
Concorde
TU-144
TU-154
YAK-42
YAK-44
A300
DC10
L-1011
IL-76
IL-96
VFW614 11
A320
737 CFMI
757
MD-80
An-72
A310
MD-11
767
ATR, F100
BAe146 11
717
737NG
A319/A321
MD-90, An-74
A340, A330
777
Il-96, Tu-204
CRJ-100/200
ERJ-135/145
328
F70, RJ Avro 11
707
727
737 JT8D
DC-9
Trident
VC-10
BAC 1-11
/200
YAK-40
F28 9
A318
A380
CRJ700/900
E170/E190
An-148, 767-/ ER ER LR
A340-5/600 5
A380NEO?
757-MoM?
China/Russ. WB?
AI/BOE N/B? 5?
DC-8, Comet
Caravelle 3
Note: New airframe developments (bold) or major derivatives, In Service (green)

9. Future (1) (20min) Not shown to audience
QUESTIONS
Not shown to audience
Future (1) (20min)
After the 787, and the A350 the industry will introduce the large scale programs A320Neo and B737Max plus CSeries, A330Neo, EJets, MS-21, C919 plus 777X in So at least more than 8 programs in the upcoming 4 years:
How will Airlines / Carriers (LCCs, Legacy, Regional Operators) operate these new aircraft and what are the extended inventory requirements and where?
The OEM supply chain prepares for a higher delivery rate of more than 20% p.a. Is the MRO supply chain prepared to cope with more than 20% more aircraft, submodules, parts?
Will stocks grow in the same matter? Or do you see efficiency gains fort he airlines and MRO suppliers.
Does new data technology allow to track data better than in previous AC generations?
What is the impact on inventory and asset management?
Will we see new products? More FHAs for specific part number spectrums? Or standardized – for example ATA Chapter related – products?
Future

10. Moderator: Klaus Mueller
Q & A
Brad Sandford
Andy Schmidt
Boris Wolstenholme
Moderator: Klaus Mueller

11. Klaus Mueller Senior Advisor Aerospace and MRO
Thank You!
Klaus Mueller Senior Advisor Aerospace and MRO
Watling House
33 Cannon Street
London EC4M 5SB 
United Kingdom

12. Future (2) – Spare Qs to fill the 20min
QUESTIONS
Not shown to audience
Future (2) – Spare Qs to fill the 20min
The Aircraft OEMs moving towards a more SFE target? Is this a chance to reduce inventory levels and part number spectrums?
What products / contracts are needed in future to reduce cost and increase service and logistic support?
Big data is at everybodies agenda? Can the MRO industry gain benefit out of these information pool? For example to simulate and forecast scrap rates more accurate.
What do emerging technologies (Additive Manufacturing, CMCs, TiAl, composites) mean for the MRO industry in future? Will we print parts on demand in 10years at each station? How will AM change the supply chain?
Future