CIMS(AU415) Xiaohong Pang Case Study:Aviation Spare Parts Supply Chain Management at Cathay Pacific Airways Limited (Discussed on Week 8) Supply chain management of aviation spare parts is characterized by stringent regulations,tight turnaround and lead time,and a large number of expensive parts. Managing spare parts in the aviation industry,thus,has always been a challenge for all airline operators.This case describes such a challenge facing Cathay Pacific that is reflected in terms of huge inventory value of all spare parts of at least US$350 million,as of December 2005.Moreover,substantial resources are consumed in the inventory management department overseeing over 380,000 line items of aviation spare parts and over 2,300 supplier relationships.This case gives a clear description of the supply chain issues of aviation spare parts operations from the perspective of an airline operator.This case also highlights the problems and challenges associated with managing supply chains of aviation spare parts. Study Questions: What are the supply chain management issues for spare parts operations that Robert and Paul need to consider in their recommendation proposal? What is Cathay Pacific purchasing power in aviation spare parts procurement?What are the possible alternatives for improvements in the procurement process? How does Cathay Pacific handle Shortage Management?What are the problems in each option? Which type of aviation spare part(s)is(are)suitable for procurement outsourcing? Why?What are the criteria for spare parts outsourcing? What are the advantages and disadvantages for Cathay Pacific to use 3PL partners for repair management and logistics management?What are the criteria for Cathay Pacific to choose her 3PL partners for repair management and logistics management? Your group should meet and discuss the above questions before coming to the class. Case discussion:In the class of Week 8,you will be called upon to talk about your thoughts of this case
CIMS(AU415) Xiaohong Pang Case Study: Aviation Spare Parts Supply Chain Management at Cathay Pacific Airways Limited (Discussed on Week 8) Supply chain management of aviation spare parts is characterized by stringent regulations, tight turnaround and lead time, and a large number of expensive parts. Managing spare parts in the aviation industry, thus, has always been a challenge for all airline operators. This case describes such a challenge facing Cathay Pacific that is reflected in terms of huge inventory value of all spare parts of at least US$350 million, as of December 2005. Moreover, substantial resources are consumed in the inventory management department overseeing over 380,000 line items of aviation spare parts and over 2,300 supplier relationships. This case gives a clear description of the supply chain issues of aviation spare parts operations from the perspective of an airline operator. This case also highlights the problems and challenges associated with managing supply chains of aviation spare parts. Study Questions: What are the supply chain management issues for spare parts operations that Robert and Paul need to consider in their recommendation proposal? What is Cathay Pacific purchasing power in aviation spare parts procurement? What are the possible alternatives for improvements in the procurement process? How does Cathay Pacific handle Shortage Management? What are the problems in each option? Which type of aviation spare part(s) is (are) suitable for procurement outsourcing? Why? What are the criteria for spare parts outsourcing? What are the advantages and disadvantages for Cathay Pacific to use 3PL partners for repair management and logistics management? What are the criteria for Cathay Pacific to choose her 3PL partners for repair management and logistics management? Your group should meet and discuss the above questions before coming to the class. Case discussion: In the class of Week 8, you will be called upon to talk about your thoughts of this case
