Vendor Managed Inventory Case Study for Aircraft Components

This case study details the implementation of a Vendor Managed Inventory (VMI) program by Incora for an aircraft component manufacturer facing challenges in managing hardware inventory. The manufacturer struggled with forecasting, inventory carrying costs, and tracking critical parts, which hindered their competitive advantage. The VMI program aimed to reduce inventory costs, improve cash flow, and consolidate the supplier base. Incora's solution resulted in a 44% reduction in inventory carrying costs, improved stock turn, and enhanced on-time delivery rates from suppliers, increasing from 70% to 95%. The program also led to a 54% reduction in required staffing, allowing for resource redirection to higher value activities. Additionally, the implementation of smartphone scanners and inventory planning tools facilitated better data collection and consumption tracking, ultimately improving forecasting accuracy and operational efficiency. The case study illustrates how Incora's integrated approach provided significant cost savings and operational improvements for the manufacturer.