Airline Inventory Management

 

Why Airline Inventory Management Is Needed?

 

Provisioning of inventory resources is one of the most significant factors in effective airline activities; anyway once in a while, it is one of the least comprehended.

Proper provisioning of inventory assets ensures adequate coverage in the assured eventuality of a maintenance event requiring a replacement part. These maintenance occasions can happen during day by day tasks (failure or damage) or during a booked support visit.

While different in nature, every one of these occasions shares the facet of disruption to aircraft operations. During the flight day, the interruption may incorporate a late takeoff or cancellation, and during a booked maintenance occasion, an evacuation could endanger the work process and timely return of the airship to service.

Provisioning, or Sparing as it is often called, not only takes into account the facts surrounding removal of a part, but also the maintenance cycle required to return the removed asset to serviceable condition.

The level of spares required for an activity relies on various components, including yet not constrained to operational or unwavering quality objectives, money related factors, removal rates for booked and unscheduled removals, fix turnaround time (TAT) at the seller or support office fixing the removed resources, scrap rates for the removed resource, renewal lead times for substitution resources, flight plans, cargo alternatives, and a large group of different elements.

Also, there are various strategies to get an extra expected to send a flying machine over into flight operations. These alternatives incorporate proprietorship techniques, renting from a supplier, obtaining from different aircraft, spot buy, spot rent, and trade of like things with fix or resource merchants.

 

Why Is Airline Inventory Management Important for Airline Operators?

 

Today, Inventory management has become vital for the survival of a travel organization. If you don’t have good control over your inventory, the day is not far when you will lose control of your profits. Try not to let inventory excess or deficiencies choose your future.

Invest in a good inventory management solution. Effective management of inventory helps in reducing costs which further keeps accounts and finances in check. Airline Inventory Management System provides real-time exchange of inventory data for complete point-of-sale control.

Flight inventory management solution causes you to actualize the most recent income and schedule management technology, utilizing propelled accessibility management strategies, dynamic client recognizable proof, and modern aircraft strategy controls. 

One of the main functions of inventory management is inventory control. Inventory control directs what numbers of seats are accessible in the diverse booking classes, by opening and shutting individual booking classes available to be purchased.

 

Airline Inventory systems management

 

Service parts are a significant cost for organizations in all divisions, one that regularly exceeds yearly benefits. The commercial aviation industry, for instance, holds an estimated $45 billion in spare parts worldwide.

A conservative estimate for the cost of holding this inventory is $6.1 billion dollars per year, more than four times the combined profits of the world’s airlines between 1995 and 1997, and even this is probably understated.

A decrease in inventory by operators could free up tremendous measures of capital and lessen working costs.

Maintenance and inventory control issues have been a center territory for some, who work in the region of aircraft activities inquire about; of specific interest is the use of quantitative strategies to control the expense of segment support, or repairable parts, and to improve by and large hardware use.

When concentrating research endeavors on airship segment support, airlines must decide the technique for fix required so as to lower cost, look after quality, and keeps aircraft use high.

Simply, when a flying machine part is expelled for support, it will normally be supplanted on the airship by a like segment taken from stock. Having the component in stock will allow the aircraft to be returned to service quickly but will cause the measurable cost to be incurred.

Whether from an in-house shop or a maintenance vendor, the quicker and more predictably the spares are repaired and returned, the fewer the component spares that need to be carried in stock while at the same time not incurring the probability of an out-of-stock situation.

The nature of the overhaul of assemblies and subassemblies dictates that 100% of all possibly required parts are available at the time the overhaul is started.

This may bring about an enormous number of parts being come back to stock later by means of specialized investigation and credit to the stock parity. Thus carriers that continue to manage their own spare-part inventories keep stocks as lean as possible to minimize carrying costs.

Inventory costs and supply are critical elements for airlines seeking to minimize expenses while adhering to leasing conditions and local civil aviation authority rules. Numerous little airlines have reacted by stocking just basic parts to meet the least equipment list prerequisites, MEL.

Demand forecasting is one of the most vital issues of inventory management Figures, which structure the reason for the arranging of inventory levels, are most likely the greatest test in the fix and redesign industry, as the one basic issue confronting aircrafts all through the world is the need to realize the transient part request gauge with the most possible level of precision.

The significant expense of present-day aircraft and the cost of such repairable extras as airplane engines and avionics comprise a huge part of the complete speculation of numerous airline operators These parts, anyway low in demand, are fundamental to exercises and their detachment can prompt over the top personal time costs.

Most airline materials chiefs manage irregular interest, which will in general, be arbitrary and has an enormous extent of zero qualities.

 

Flightslogic Airline Inventory Management

 

Flightslogic design and develop Airline Inventory Management which helps you to provide better customer services through fast delivery and low shipping charges, hence, meeting customer expectations.

Our Airline Inventory Management solutions use advanced availability management techniques, dynamic customer identification and sophisticated airline policy controls to automate flight schedules, codeshare agreements, re-accommodation, and seating.

This boosts airlines' system yield, expanding incomes and improving proficiency. It additionally guarantees airlines can separate high-esteem clients and react to competitor activities with speed and precision. 

Along with this Flightslogic also provides a comprehensive inventory management tool for scheduled and charter flights, with full GDS integration. 

Being a leader in the travel technology company, we are fully connected with universal GDS including Amadeus, Galileo, Sabre, Travelport, Apollo, etc.

Global Distribution System is a ticketing platform used by travel agents to access real-time inventory in one place for airlines. It is used for booking airline tickets in one place. This system is the essentials of all reservation and distribution systems used by online travel agents & travel companies across the globe.

GDS integration for flights enables your travel business to access a wide range of online sales channels and travel products, increasing your online sales strategy.

That’s why it is the preferred tool for travel agents as it is handy and fast. Our Airline Inventory System integrated with GDS helps to increases an airline’s distribution reach and makes it’s convenient for travel agents.

The customers can get access to the real-time inventory of airlines worldwide through connectivity to GDSs.

Flightslogic Inventory strengthens your airline’s competitive positioning through speed and automation. We offer your airline significant enhancements in ‘speed to market through automating the management of flight schedules, codeshare, re-accommodation, and seating.

Its unique customer value process also helps you to better serve your high-value customers. Along with this, it facilitates to make travel business more profitable by reducing the cost, sold and increasing the sales.

It helps increment accuracy, speed, responsibility, and versatility in every one of the tasks and procedures inside a business. Any size of business either it is small, medium or large can take benefit from inventory management by boosting efficiency in the supply chain and reducing costs.

 

Goals of Inventory Management

 

In its most crucial structure, the objective of airline inventory management is to give the most possible level of service at the least absolute expense.

This precept applies whether the inventory director is entrusted with boosting airship and system accessibility for a booked help traveler or payload aircraft, or contract tasks.

It applies whether the operator has a couple of flying machines or hundreds and it applies whether the operator is flying charter tasks immediately, point-to-point booked flights, or a complex system of household and global routes. 

While each inventory manager may face slightly different sets of operational characteristics, the goals of inventory management largely remain the same.

At a significant level, objectives run from preventing delays and cancellations by guaranteeing part accessibility and access for support faculty to guaranteeing that fill rates are satisfactory to guarantee that traveler accommodation things have sufficient stock so disappointments of things can be quickly addressed by maintenance.

The vital objective of aircraft inventory management is to forestall whatever number abrogation as could be expected under the circumstances by receiving a cost-effective stock provisioning, allocation, and the management system.

Cancellations not only result in a lack of service from the origination point but also impact subsequent departures, perhaps with catastrophic consequences for the daily schedule. Cancellations due to lack of parts quite often happen on No-Go things as huge as engines down to the littlest flight-basic part.

In addition to preventing crossing out of flights through the use of an inventory management system, an inventory manager tries to avoid as many materials related delays as could be expected under the circumstances.

This second goal is almost implied in the first, however, passengers are sensitive to delays, even short delays, as many schedules their flights based on connecting from one airline to another, or even inside a similar aircraft with short delays.

For point-to-point transporters, preventing delays is basic in maximizing airship accessibility for modern activities. A single short delay could cascade into a series of schedule havoc inducing delays and cancellations at subsequent stations.

For charter administrators, limiting delays is fundamental with the goal that aircraft accessibility is maximized during the day available to be purchased to clients.

For cargo operators, the considerations are equivalent to traveler aircraft. Although most cargo (with the exception of perishable things) is commonly not adversely influenced by delays, the cargo operator's timetable and airship use endure only equivalent to a traveler aircraft, and the cargo operator's transportation and getting human clients are positively touchy to an interruption in the progression of their cargo. 

The anticipation of the two delays and cancellations serves the airline by conveying aircraft into the calendar on a predictable premise.

For practically all planned help, airships free of maintenance issues are basic for productive activities, regardless of whether the airline conveys travelers, payload or both.

In the case of charter operators, the goal remains the same, and maintaining a high state of readiness is key to generating business when opportunities present themselves.

A typical third objective of an airline inventory manager is to accommodate the help level of parts accessibility to the maintenance capacity of the aircraft. Inventory assistance level or "Fill Rate" combined with effective support practices guarantees the airship is conveyed to the client in a high condition of availability.

Appropriately managed inventory additionally guarantees that the human capital of the maintenance workforce is proficiently used. Low fill rates can adversely affect operations and customer experience.

In the event that an airline has a poor fill rate on things regularly referred to as Minimum Equipment List or MEL, the activities of the flying machine can be seriously hampered.

An example would be passenger seats locked out due to damaged parts needing replacement, forgoing revenue and resulting in fewer passengers carried to their destination each day until the seat is repaired.

A few sections set on the Deferred Maintenance rundown or Maintenance Carry Over may incidentally suspend Extended-territory Twin-engine Operational Performance Standards (ETOPS) and will hamper the airplane tasks until the part is supplanted.

Other items may be passenger convenience items such as reading lights, or perhaps one lavatory is locked out for a flight, but these items will definitely impact the passenger experience and maybe bring about client hostility and contrarily affect rehash business.

An entirely different class of objectives is identified with financial targets. Financials often form the basis of inventory management. In the event that cash was no item, the activity of provisioning for aircraft tasks would be very basic, if not extremely costly and inefficient.

However, almost all operators impose some type of limitation on the annual spend for inventory purchases. Most airlines work under sometimes complex budget plans of inventory purchase, scrap, balance development, surplus objectives, and so on.

Often the inventory management will be tasked with a series of financial goals that seem at odds with the notion of providing a high service level.

For instance, a supervisor may be under financial strain to decrease inventory balance by every year consigning some bit of stock to excess, while at the same time extending activities into a few new universal stations.

 

Unique Capabilities of Airline Inventory Management System

 

Apply proven forecasting technology

 

Airline Inventory Management (AIM) incorporates sophisticated forecasting models that are influenced by year-over-year and week-over-week history, recent behavior, seasonal patterns, competitive fare positions, look-to-book ratios, and user-defined events.

It can apply those models whether your airline uses a leg, segment or O&D-based inventory strategy. Users are able to examine, modify, reconfigure, recalculate, and assign specific forecasts to flights.

Forecast analysis and accuracy tools allow for an in-depth examination of the information used to build forecasts for individual flight departures, as well as the accuracy of forecasts created by the system, over time.

 

Optimize every revenue opportunity

 

Optimization models have evolved to meet the demands of the airline industry – from the Littlewood EMR model, through several generations of EMSR models, and on into today’s price elasticity based models. AIM delivers all of these optimizers together in a single product.

This provides your airline with the flexibility to select the best optimizer for your particular situation, with the goal of maximizing revenue on every flight and throughout the network. Individual optimization variables may be configured at a system, market, or flight departure level.

 

Leverage multiple flight-level inventory controls in real-time

 

With holidays, new competitors, macroeconomics, political instability, and countless other variables contributing to constantly shifting market dynamics, AIM enables multiple ways to optimally control and report on inventory, while quickly reacting to such changes.

One such tool is the business rule utility which allows analysts to set class level allocations for any day prior to departure, and introduce automation without the risks inherent with traditional revenue management inventory control methods.

AIM also seamlessly manages revenue-critical flight decisions with time-saving tools integrated into the system, allowing users to query and action flights seamlessly with a click of a button.

 

Make data actionable in the moment

 

AIM opens the door to a multitude of rich data sources and provides users with the critical information needed to make allocation decisions.

Average fare, current seats available, total bookings, local bookings, connecting bookings, current revenue, remaining demand, forecasted boarding, optimal AUs, and real-time bookings by bucket are just a few of the more than 60 display options to choose from.

Other data available in AIM includes competitor fares, look-to-book statistics, tour operator data, OD crossing traffic, surrounding flights in the market, seasonal patterns, recent flight and market bookings build, effective and discontinued fare basis codes, and user-selectable graphs.

This allows you to rapidly play out multiple hypothetical scenarios more quickly and to view and make decisions on hundreds of flights simultaneously.

 

Customize data visualization

 

AIM delivers more than 100 powerful breakthrough reporting tools, making it easy to look at rich, integrated data in thousands of ways. With more elements to examine and more ways to customize reports, users can create, save, and modify reports, and export the results in a number of formats to convey critical business information.

Authorizations, availability, bookings, revenue, pickup, load factor, no-show, go-show, revenue per available seat km, revenue per revenue seat km, and average fare are just a few of the reporting elements that are available for detailed or summary reporting.

Leverage these tools to also determine the value of future bookings, not just the quantity, using a unique methodology that establishes the value of future revenues and gain the insights needed to adapt quickly to shifting market conditions.

 

Key Functionalities

 

Reservations:

 

• Online inventory maintenance 

• Overbooking management

• Online pricing

• Internet sales and credit card purchasing

• Flight cancellation

• PNRs

• GDS integration on request

 

Airport check-in/departure control

 

• Pre-check-in

• Automatic waiting list management

• Chance of equipment

• Excess baggage

• Class change

• Missing passenger search

• Luggage identification

 

Airport ticket office/city ticket office

 

• Reservations

• Sales

• Invoicing

• E-ticket compliant

• Refunds and exchanges

• Cash closing

• Accounting information

 

Reports

 

• Sales reports and analysis

• Overbooking

• Load factor

• RPK

• Yield

• ASKO

• User-defined queries and reports

 

Why Inventory Management is important?

 

There are generally three principle purposes behind gaining a well-constructed inventory management system.

1. If you wish to apply yielded, request based evaluating in your business, you should have an extremely clear comprehension of the sold seats and what number of areas yet accessible at any snapshot of time in your business channels.

In the perfect case, inventory control should be progressively overall business channels.

2. Professional inventory management is necessary to allow a specific seat reservation for customers.

Especially in cases where vehicles have different seat configurations, such as separate seat classes, two decks, or scarcely placed electricity plugs. Very advanced inventory management systems even offer options to up-charge more popular or convenient seats, a feature already quite standard in the airline business.

3. Selling seats crosswise over various sales channels suggests the risk of overbooking or unsold seats.

Overbooking happens when, for instance, a similar seat is sold twice on various channels. To maintain a strategic distance from that, operators frequently split their inventory among the various channels, which can bring about void seats and lost income. These issues, as well, can be deflected with proper, constant inventory management.