Risk Management Strategies For The Aftermarket

By Robert Trebilcock
Source: Aviation Week & Space Technology

•Bring the risk in-house. If there is only one source of supply, an OEM or MRO may consider investing in or buying that supplier to insure their viability. “I've seen organizations vertically integrate a critical supplier into their business to reduce their risk,” says Sawchuk. “We have also seen instances where a company has invested in a competitor to insure a second source of supply.”

Companies taking such steps will have more smoothly running operations and experience less down time. The key is understanding the risk that is most important to your organization. “A lot of folks start in the middle without understanding what their supply chain is all about,” says Sawchuk. “That's why I urge them to go back to the beginning and understand what is it they are trying to protect. You want to build capabilities that align with your business.”

Tap the icon in the digital edition of AW&ST for a case study in the importance of tracking metrics to supply-chain risk management, or go to AviationWeek.com/mrrisk

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