Three years ago, helicopter engine manufacturer Turbomeca USA began implementing Lean processes in its maintenance, repair and overhaul operations in Grand Prairie, Texas. As the company improved the shop floor processes directly related to engine repair, it noticed that its warehousing and logistics processes weren't keeping pace. That, in turn, was slowing progress in Turbomeca's push for improvement.

"We looked at what happens in the warehouse as not as noble as putting engines together," said COO Larry Alexandre. "But we discovered that without world class support from the warehouse, we couldn't continue to improve our facility."

Too often, the warehouse or distribution center is an after-thought. But when an MRO operation like Turbomecca USA wants to implement Lean processes, it also needs strategies, processes and systems inside the four walls of a parts depot or warehouse to support that move.

Today, Turbomecca is working with a third-party logistics company to transform its warehouse operations to match its repair operations. Other MROs need to follow suit, says Joann Michalik, an associate partner at Oliver Wyman.

"Industries like high tech, automotive and direct-to-consumer, have been putting in place warehouse processes that allow them to reduce inventory and lead times for some time," said Michalik. "In the aviation industry, the MROs are only just now beginning to think of ways to link their inventory and warehousing processes to their demand and service level requirements."

When the two are aligned, Michalik adds, warehousing changes. "You need less storage space because you're receiving in smaller quantities and delivering more of it directly to the line," said Michalik. "The more progressive MROs are looking at the risk profiles of their inventory to decide what items they have to have on hand and which items can be pulled through the supply chain. They're then reconfiguring the space for a very active receiving and put away so they don't have as much on the shelves in inventory."

The benefit: "Done the right way, we can look at a 50% reduction in inventory," said Michalik.

Here's a look at three warehouses, ranging from a traditional facility to one transitioning to support lean manufacturing and maintenance, and how they support MRO activities.

U.S. Navy Fleet Readiness Center Southeast, Jacksonville, Fla. Traditional warehousing and continuous improvement.