Sabena Technics Reduces Overstock by E2 Million in Two Years
Sabena Technics is the third-largest Independent MRO provider in the world. The group has extensive capabilities across an array of aircraft, from regional aircraft types such as ATR and Embraer through to narrow and widebodies, from the Airbus and Boeing families, as well as C-130, KC135 and Canadair waterbombers.
Sabena Technics’ qualified workforce and its infrastructures (over 200,000 m2) are an integral part of its success and it benefits from over 2,200 employees across 15 sites worldwide.
Sabena Technics has over 200,000 slow-moving part numbers that result in around €75M of consumable purchases per year. Their average stock turn is little over one year and each year the group depreciation cost is over €2M.
Sabena Technics run three materials requirement planning (MRP) processes (SAP & MOVEX & AMAIS) with very few updates regarding rules and alerts due to consumption diversities dominated by low and erratic behaviour. Their challenge was to reduce stock holdings but still maintain high levels of service, all this whilst making sure day-to-day business wasn’t affected. They wanted to achieve this with one central system for stock management and decision making.
The system needed the ability to help the supply team focus on stock management and implement a common KPI structure whilst being ergonomic and simple to use.
In 2012 Sabena Technics made the decision to centralise its supply chain team and to invest in inventory planning software Optimiza.
Optimiza enabled Sabena Technics to not only align their demand planning and supply processes but also maximise their service levels and project margins.Optimiza is now being used to execute all the planning of components across the range of 200,000 slow moving parts. This includes:
- Demand Planning, Policy Modelling, LT Analysis, Supplier Alternatives, Supersession Management, Shift Life Management, Ordering and Alerting including AOG component expediting
- The creation of Dynamic (k) BOM from historical repair history
- Target level translation through multi-level BOM
Currently Optimiza is used by 18 planners in Bordeaux, but ultimately Sabena Technics expects the number of users to be in excess of 100 once rolled out to the company globally.
With Optimiza fully integrated and taking over all MRP decisions, Sabena Technics began to see the benefits.
A result of using the software and off the back of refocusing their supply chain team, they achieved the following results in stock rotation improvement and trading development:
- Over a two-year period overstock decreased by €2M, from €7M to €5M
- Stock has decreased by €8M since 2012 and maintained stability despite an increase of 15 percent in activity globally
- Annual depreciation cost reduced to €1M from 2013 to 2014 and still decreasing