The Effect of “Internet of Things” on Aircraft Spare Parts Inventory Management

Abstract

Aircraft spare parts inventory management is crucial for airlines as it directly impacts fleet availability and customer satisfaction. Internet of Things (IoT) and big data analytics could decrease the risk of unavailability and the inventory costs for airlines. This paper aims to highlight the role of IoT in aircraft spare parts inventory management. According to Klipi et al. (2009), four generic practices are used by airlines for supplying spare parts: in-house sourcing, ad-hoc, cooperative pooling, and commercial pooling. The implications of IoT in these four strategies are assessed. The business model of KLM engineering and maintenance department provided by (Van Rijssel, 2016) is used to elaborate the application of IoT from four perspectives of component and reliability; airlines engineering and maintenance; logistics arrangement and market.