OPTIMIZING INVENTORY MANAGEMENT THROUGH DIGITAL TRANSFORMATION INTEGRATION IN THE INDONESIAN AIRCRAFT MRO INDUSTRY

Abstract

This study originates from the issue of substantial financial losses experienced by a Maintenance, Repair, and Overhaul (MRO) company in Indonesia in 2024 due to delays in the arrival of spare parts. These delays subsequently affected the timeliness of Return to Service (RTS) for aircraft undergoing C-Check maintenance, resulting in a high number of Aircraft on Ground (AOG) cases. This research aims to analyze the effect of digital transformation integration, represented by three main variables: Artificial Intelligence (AI)-based forecasting, Enterprise Resource Planning (ERP) flexibility, and Big Data, on inventory management optimization in the Indonesian aircraft MRO industry. A quantitative method was employed, with the analysis conducted using SmartPLS software. The study involved 120 respondents from the management level of aircraft MRO companies in Indonesia. The findings reveal that among the three digital transformation variables tested, only ERP flexibility has a significant impact on inventory management optimization. Specifically, the ERP feature that allows for user customization—which emerged as the strongest indicator within the ERP flexibility variable—has a substantial influence on inventory management optimization. Meanwhile, AI-based forecasting and Big Data did not demonstrate significant effects. These findings indicate that implementing digital transformation through ERP flexibility can enhance inventory management optimization, thereby enabling aircraft to return to service on time due to the availability of spare parts. This research is expected to serve as a practical reference for managers in the MRO industry in designing digital transformation strategies to achieve more effective inventory management.