Aircraft Spares Supply Chain Management for the Aviation Industry in Zambia Based on the Supply Chain Operations Reference (SCOR) Model

Danny Milambo,Jackson Phiri

doi:10.4236/ojbm.2019.73083

Abstract

This research articulates the challenges faced in the Supply Chain Management (SCM) of aircraft spares in the Zambian Aviation Industry. The study was conducted in Lusaka, Zambia. It was discovered that some of the challenges faced in SCM were due to unreliable lead times, non-adherence to service level agreements between buyers and suppliers and the unavailability of local players in the industry among others. The sample size was purposively selected from the aviation industry in Zambia. Data were collected from one hundred respondents from public and private institutions in the Aviation sector which was later analysed using descriptive statistics. Based on the findings, it was concluded that the Supply Chain Operations Reference (SCOR) Model can be adopted to eliminate delays in procurement and delivery of spare parts and solve many other challenges found in the aviation industry in the Country. This can be ironed out using the model’s five management practices of plan, source, make, deliver and return. The model structure also provides four major components (People, Practices, Processes and Performance) to assess the status of any given situation. These elements ensure a smooth supply chain for products as they incorporate demand management, inventory management, and freight management among others. The study recommended the need to employ Enterprise Resource Planning for supplier-vendor management and the need to adhere to service level agreements. Furthermore, it stressed on the need to use supply chain techniques in improving efficiency in the SCM function to reduce costs.

Highlights

A key feature of present-day business is the idea that it is Supply Chains that compete, not companies and the success or failure of Supply Chains is determined in the marketplace by the end-consumer [1]
It was concluded that the Supply Chain Operations Reference (SCOR) Model can be adopted to eliminate delays in procurement and delivery of spare parts and solve many other challenges found in the aviation industry in the Country
There is need to carry out a study to identify the challenges faced by the aviation industry in procurement of the aircraft spares and come up with possible solutions based on the Supply Chain Operations Reference Model

Summary

Introduction

A key feature of present-day business is the idea that it is Supply Chains that compete, not companies and the success or failure of Supply Chains is determined in the marketplace by the end-consumer [1]. The arms-length types of relationships that have existed for years between buyers and suppliers with each party trying at every moment to guard their position in the business dealing without recourse to other stakeholders have affected the operational efficiency for decades [3]. Such type of supply chain management in the supply of aircraft spares has more often than usual resulting into delayed delivery of the spares in the Zambian Aviation Industry.

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Results

Conclusion