M.C. Gill Corporation is one of the world’s largest manufacturers of honeycomb, high performance floor panels, cargo compartment liners and original equipment for passenger and freighter aircraft.

Business Challenge Increase the sales of MRO (Material, Repair and Overhaul) products while managing inventory investment. The ability to deliver the same day to their customers with an AOG (airplane on ground) is their market goal. They were relying on forecast and safety stock to ensure high customer service. Despite this inventory investment they were plagued by stock outs.

Joe Moresco, Materials Manager: “Sales and Planning love it.” “Easy to use.” “Does exactly what it says it will do.” “Flexible, scalable.” “The best thing – IT WORKS!”

The Solution

M.C. Gill implemented Demand Driven principals and Replenishment+® software. They set individual buffer profiles for MRO products to maintain inventory inside a service range determined by their Sales group. The objective was to set the range at a level adequate to service multiple customer demands without stocking out. MRO products have incredibly high margins and service levels are critical to their reputation and future product sales in the market place!

The Results

Sales of MRO product increased by 10% over the prior year while driving even an even greater improvement in profit margin. Most importantly, M.C. Gill has achieved a same day fill rate of 100% despite a difficult and dynamic market place. The graph shows the number of items stocked out or below the red zone minimum target range for 70 MRO products over a 40 week time horizon. Once the program was implemented, they quickly reduced the number of items that fell below the minimum service target levels – the red zone. Their results continue to improve and stock outs are virtually non-existent. Inventory investment dropped 5% while service levels soared and expedite costs disappeared!