asset management

One Huge Reason Surplus Inventory Is Toxic To Your Results

One Huge Reason Surplus Inventory Is Toxic To Your Results

Do you hold surplus inventory for your aircraft material needs? 

This unnecessary buildup occurs when you order inventory in preparation for near term consumption.

When that consumption never occurs. Voila! Surplus inventory builds up. 

If left unattended, Its like a giant weight, smothering your financial results. 

Retirement Plan For End Of Life Aircraft

There comes a day when aircraft get old and it’s time for them to retire. Their joints begin to ache, their bolts begin to fall out and their oil dries up.

end of life aircraft

If you have or know of such an aircraft that’s hurting and barely getting through its last days, we want her.

We’re looking for various teardown candidates who have reached the end of their life.

The current aircraft we want to put in on our retirement plan so they can feel happy and useful once again are:

Boeing 737-300/400/500

We've worked with Boeing aircraft for over a decade. The B737-300/400/500 aircraft is dear to our heart and we want to make sure that she gets the most out of her life. She is our short to medium-range twin jet narrow-body work horse.

Boeing 767

With an increasing number of clients utilizing this aircraft we want to make sure they're covered. This mid to large size, long-range, wide-body twin-engine jet has become a  popular choice and we would like to add more to our retirement plan.

Airbus A320

Another popular short to medium range, narrow-body aircraft that comprises a large amount of our maintenance traffic. Since she is popular by our clients, we would like to continue to add more of these aging aircraft to our retirement program.

ATR42 and ATR72

With the first ATR produced in 1984, these regional, twin-turboprops have been a major product line at Skylink. They are a unique blend of elegance and efficiency and as they age we want to make sure they go out peacefully.

Lockheed C-130 Hercules

A major player in the military transport field, this four-engine turboprop is a major transporter for the international Air Forces we work for. She is strong, yet aging. To continually support newer fleets cost effectively, we must be able to use pieces of aging fleets. We will evaluate any model available for tear down.

As you can see, we have a few aircraft that we want to continually add to our retirement program. These aging fleets deserve final days on green pastures and we want to grant them that wish.

If you have or know of one of these aircraft reaching its retirement point: CLICK HERE

High Turnover and the Inventory Dream

You sit in your office, wondering, waiting.

The mess on your shelves is a never ending doom of dust and debris.

You fight with yourself trying to figure out when it will sell or when it should be scrapped.

high inventory turnover through asset management

Aircraft component surplus is a common problem. A costly problem.

It’s a marriage problem.

Often times people feel married, dedicated to the parts.

A few years ago, more like 7, we decided to move to another location.

We had old Rolls-Royce engine nacelles lining the wall, several hundred feet of wings and struts hanging and consuming the outside perimeter of the warehouse.

Prior to the move I walked into the warehouse, with a deep sigh, and thought, what a bunch of junk.

The material had sat in the warehouse for over a decade and was deemed useless and costly to continue to sit. So we decided to scrap it.

Now, as an airline you have the option to consign the material to someone like Skylink but for us, at this time, scrapping was in our best interest.

For you, creating a strategy where you have high inventory turnover may seem impractical, but it may not be a so far from being just a dream.

Inventory turnover

Inventory turnover is defined as how many times a company’s inventory is sold and replaced over a period. This is a valid definition for someone like Skylink.

For you, inventory turnover is defined as the liquidation of unnecessary components to reduce cost and fund profit generating activities.

High inventory levels are unhealthy because they represent an investment with a rate of return of zero. It also opens you up to trouble should prices begin to fall. Another very big issue we see.

Often times airline surplus is still expected to get the same return from pricing 10 years old. Unrealistic and hard to achieve.

The best option to avoid this is to consign your assets to a trusted partner who specializes in the resale of aircraft spares. And it’s for this reason we have our Asset Management program.

By utilizing a skilled partner who does this day in and day you will ensure a higher inventory turnover than you experience now, it will cost you less to staff and facilitate sales, and reduce your overhead expenditure.

An asset management program is an excellent tool if you see your inventory levels rising and dust beginning to collect.

If you're interested in such an asset management program, Click here