COMPETING WITH SUPPLY CHAIN STRATEGY
RightChain ™ : Service Policy
**(EBIT Priority could be driven heavily by quarter)
Airlines / New Parts
Repair Shops/New Parts
(**Diff - is How much Revenue &Margin - EBIT)
(**Diff - is How much Revenue &Margin - EBIT)
Types of Orders
Aircraft Status Customer Part Types Order Profit
Types of Orders
Aircraft Status Customer Part Types Order Profit
A Orders
AOG (Airline on Ground) Deferred (on minimum equipment list (Airplane can still
A
EI (End Item) / LRU
High
A Orders
AOG (Airline on Ground)
A
LRU & Component LRU & Component s LRU & Component LRU & Component
High
B Orders
B
LRU Medium B Orders
Medium
Line Stop
B
C Orders
Pending Maintenance
C
LRU / Consumable
Low C Orders
Out of Stock - not an immediate
C
Low
D Orders
Replenishment Order
A,B,C
Low
OEM's
Military
(**Diff - is How much Revenue &Margin - EBIT)
(**Diff - is How much Revenue &Margin - EBIT)
Types of Orders
Aircraft Status Customer Part Types Order Profit
Types of Orders
Aircraft Status Customer Part Types Order Profit
A Orders
Line Stop
A End Items / Parts
High
A Orders
DPAS Rated Order
A
EI/Parts
High
B Orders
Contract Date
B
End Items / Parts
Medium B Orders
Ordered Inside of Lead Time Customer Date
B
EI/Parts
Medium
C Orders
C
EI/Parts
Low
Repair Parts Types of Orders
(**Diff - is How much Revenue &Margin - EBIT)
Aircraft Status Customer Part Types Order Profit
Priority Order Ranking 5 = AOG (4 hr service) 4 = Critical (24 hr service) 1,2,3 = 7 Day TAT
A Orders
AOG (Airline on Ground)
A
LRU & Component LRU & Component LRU & Component LRU & Component
High
B Orders
Line Stop
B
Medium
C Orders
Out of Stock - not an immediate
C
Low
D Orders
Replenishment Order
A,B,C
Low
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RightChain ™ : Maximizing Financial & Service Performance with Supply Chain Strategy © RightChain ™ Incorporatedl (All Rights Reserved) RightChain.com
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