preview

Logistics Of The Aviation Industry Essay

Good Essays

Logistics in the aviation industry is not limited to just airplane sales, production operations at the factory level, or parts distribution. It goes beyond to include pre-sale processes, storage, returns management, disposal of excessive inventory, and other supply chain concerns. Reverse logistics defines the course of moving products from end users to manufacturers for recapturing value or desirable disposal. In the aviation industry, a three-step reverse logistics approach may entail customer interaction strategies, transportation, and positioning initiatives, and value redemption plan. With the trend of e-commerce being so ubiquitous, the need for reverse logistics in the aviation industry is even more critical in today’s global world.

1. Reverse Logistics Analysis
Increased global demand for air travel has created raising demands for planes and their spare parts. The Global Market Forecast estimates world 's total passenger aircraft inventory to grow to more than 36,500 parts by 2032 (Terry, 2014). With such undersupply and limited time frames especially from clients in the Middle East, the aviation industry is forced to outsource for materials from geographically diverse suppliers, posing a significant challenge in the logistics departments. Since the advent of aeronautics, regulations have often stressed on continuous research and development of products, making manufacturing be an expensive exercise that most companies are not able to do alone. For such

Get Access