Extending the Aftermarket Supply Chain Crucial for Optimal Performance-Based Logistic Performance

Significant Performance-Based Logistics (PBL) benefits will only be realized when all members of the aftermarket supply chain, from first-line maintainers to prime PBL contractors, and all their sub-tier vendors “sing from the same song sheet.” To meet this goal requires real-time access to data, total asset visibility, performance metrics and automated decision-support tools. In a recently published white paper by Frost & Sullivan entitled “Extending the Aftermarket Supply Chain for Optimal PBL Performance”, the importance of real-time PBL decision-making is discussed.

A myriad of internal organizational and external economic factors are driving the need for supply-chain visibility within the PBL paradigm. At present, suppliers from sub-tier vendors to primes/systems integrators typically lose sight of their products once they are delivered to the prime and then on to the ultimate end-user (e.g. airline or military user). This has led to a situation where vendors have no real-time access to status information on their products, or advanced planning tools with which to make proactive decisions.

Frost & Sullivan believes that an organization must have visibility of their goods within the PBL contractor and in the operating fleet. In order to achieve this goal, there must be a tool in the middle, or middleware, to link the information islands. The industry is now moving to fill this gap with initiatives such as those announced by Miro Technologies, Inc. and the TFD Group at the recent PBL 2007 Conference. Miro has significantly extended the supply and maintenance management capabilities of its GOLDTM product line by introducing GOLDespTM (Enterprise Services Platform).

If you are interested in receiving the white paper entitled “Extending the Aftermarket Supply Chain for Optimal PBL Performance”, custom research or white paper services conducted by Frost & Sullivan, please contact Vanessa Quezada – Corporate Communications, at vanessa.quezada@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the requested information via email upon receipt of the above information.

These middleware solutions would link manufacturing and logistics information and update in as close to real-time as possible from anywhere in the world. The consolidation of this information becomes a powerful tool for the PBL provider as well as its sub-tier suppliers, who can then better forecast production demands based upon mean time between failures (MTBF), battle damage and condition information. This goal is to attain the ability to conduct advanced planning, ranging from the PBL provider to the parts supplier.

Most of the information required to achieve improved PBL already exists, but is contained in stovepipe systems that do not provide the necessary data sharing or broad visibility. This situation is beginning to change. For example, the US Air Force uses its Recoverable Assembly Management Process System (RAMPS) to electronically distribute a broad range of base-level logistics performance data to PBL contractors. While the accuracy of this data is sometimes questionable, even questionable data is often a gold mine for PBL contractors. Given the success of this program, it’s quite likely that the other military services and civilian consumers of logistics support will follow suit with their own programs.

Frost and Sullivan contends that good planning and visibility are of little value if they do not result in effective actions. Planning and modeling tools can provide effective analyses, but they are seldom linked to mechanisms that implement their recommendations. This separation of planning and execution is expected to evolve into a system that provides the user a straightforward interface to approve recommendations, which are then implemented without further interaction. Given the myriad of planning and execution systems, a standardized interface between them would be extremely helpful.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

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