Cathay Pacific: Spare Parts Managing Process Article

Cathay Pacific cycles

They have one spare parts supervision process but it really has some drawbacks and problems need to be resolved to refine the process and also to increase its efficiency. Initial main stage is that these kinds of aviation replacement components is very pricey and thus provides very adverse effect on Cathay Pacific's balance sheet. They have satisfactory inventory of these spare parts although of which significant percentage of parts will be dead and inactive stock. They can't merely get rid of these parts mainly because for plane safety selected parts are necessary and can be needed at any time. The usage routine of these replacement components is highly capricious and thus, future demand predicting is another problem task pertaining to Cathay Pacific cycles. Aviation spare parts are mainly divided into two groups Critical and noncritical. Crucial spare parts companies are mainly dominated by the ORIGINAL EQUIPMENT MANUFACTURING (OEM) (Original Equipment Manufacturer) suppliers where as there are numerous suppliers intended for non-critical aftermarket and the moving over option can be bought. However , this kind of switching option is not recommended as these turning costs are very high. Cathay Pacific put it to use system to get spare parts supervision but they have no collaborative THAT system which in turn facilitates communication between Cathay Pacific and their suppliers. Cathay Pacific Airline needs a procurement process improvement to ensure the proper availability of spare parts at the extremely right time as well as the place in which the part is needed.


Global finding. This means reducing the number of suppliers and the choice of suppliers which are spread around the globe. The reduced number of suppliers and the sharing of IT devices will help to build the trust amongst these people and to build the long term relationship. Cathay Pacific already features its hubs in different prude. Selecting the suppliers' close to these hubs will be a very good move in the process of amelioration of supply cycle. This will help to lower the links in the existing source chain and reduce the...