expendables

How Ad-hoc Expendables Are Killing Your Biz...& You!

How Ad-hoc Expendables Are Killing Your Biz...& You!

It happened again.

Maintenance requested more expendables for a routine task card and yet again, you haven't dealt with the material since 1999.

Now, you have to go source and purchase this material. And more than likely, maintenance needed it yesterday.

The Easiest & Most Cost Effective Way To Manage Your Expendables

The Easiest & Most Cost Effective Way To Manage Your Expendables

Is processing your aircraft expendable orders like cleaning a toilet? 

It’s messy, time-consuming, and there are more productive things you could be doing. 

Likely!  

But whether you like it or not, these low value, high volume items are an important asset to your fleet. 

They’re crucial! 

Yet, they take up a ton of time. 

How To Stop Losing Money With Inefficient Expendable Purchases

How To Stop Losing Money With Inefficient Expendable Purchases

Expendables and consumables. The inglorious material that gives you a headache. 

You know the feeling. You get a 100 part requirement. Or 200. Or 1,000. And your head wants to explode. 

Save $100,000 A Year With This Simple Purchasing Solution

Save $100,000 A Year With This Simple Purchasing Solution

Are you purchasing aircraft material daily? 

Like most airlines and MROs, it is important to complete projects, keep aircraft in the air and make money.

But what if, everything you thought about purchasing was costing you more money? The money you didn’t know was seeping through the cracks as hidden operational expenses. Money not on the POs you send, but hidden in everything that surrounds the PO. 

How To Easily Process Your 1,000 Line Item Requirement

How To Easily Process Your 1,000 Line Item Requirement

Your new requisition order comes in. You need to procure 1,000 aircraft parts. You look down at your screen and want to explode. You become stressed. You wonder how you and your team will get it done on time and on budget (a realistic budget that is). As you look at the list, you notice a mix of rotables, expendables, and consumables. Now, it’s even more complicated. What are you to do? How are you going to get this done?

 

The Brutal Truth About Expendable Inventory & What To Do About it

The Brutal Truth About Expendable Inventory & What To Do About it

Inventory holding strategies haven’t changed much in the past 30 years. Airlines still cling to the ‘just-in-case’ mentality. And because of that, excessive inventory is costing airlines $10bn per year (21% of total inventory value).

Be Ready for Hajj. Simple Material Tips to Plan for Demand.

Be Ready for Hajj. Simple Material Tips to Plan for Demand.

Having an AOG during Hajj is an expensive proposition. Over 2 million Muslims from 183 countries will descend on Mecca and the surrounding areas. Airlines from all over the world are hired to help achieve this logistical feat.

Your aircraft, the material and people who support it, and your entire supply chain must be ready for the spike in traffic. Looking at the big picture, having important conversations and planning are crucial to successful passenger transport during this yearly pilgrimage.

How To Set Up Your Vendor Managed Inventory

How To Set Up Your Vendor Managed Inventory

Your aircraft expendable inventory is like a child’s bedroom. Messy and out of control. You have stock on what you don’t need and you’re AOG for items you should have planned for. It’s a mess. You’re frustrated that time and money is wasted. All you want is for the craziness to stop. You want to stock the things you need and plan for the rest. And this is where aircraft inventory management plays a big role. 

What you need, is vendor managed inventory. It’s an aircraft expendable dream. Have what you want and only consume what you need. Once you hit a minimum stock level, an automatic shipment of replacements is sent to you. Easy! But how do you decide if it’s right for you?

Expendable Automation: 6 months, 500 parts, 0 delays

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Do you ever wonder how you can make aircraft consumable and expendable consumption easier? Or even automated? Expendable Automation: 6 months, 500 parts, 0 delays

No matter the price, no matter the size, no matter how many you need, even a small expendable can cause you to have an Aircraft on Ground (AOG). 

These are 3 words every procurement professional never wants to hear. These words raise your blood pressure, make you sweat, and keep you up at night.

AOGs are costly occurrences that thousands of airlines experience due to consumable and expendable problems. It’s often caused by the component being out of stock, but it doesn’t stop there.

These little things can cause AOGs because of capital costs / obsolescence, logistics, or even from a failed purchasing plan. 

How often does one of these create issues for you? Think about it. Once, twice, twenty times a week?

Now think of all the time and money you spend fixing these problems.  It gets messy fast.

It doesn’t have to be all that bad and is incredibly simple if the right strategies are applied.

Automating your expendable and consumable consumption

I’m a huge advocate of automating certain aspects of my life.

From social media posts and blog creation, to business development and automated ERP processes, automation can be found everywhere.

And most importantly, automation is handled by people who have a greater knowledge of certain activities. Or the opportunity cost for them to do a certain task is far cheaper than what you can do it for.

A good example is the company who cleans your office. The opportunity cost is much cheaper for them to do it instead of you. Make sense?

The same goes for automating your consumable and expendable consumption.

It’s as simple as 1, 2, and 3.

  1. Identify high usage components and / or components you use every year.
  2. Send this list to your consumable management partner
  3. They ship these items to you on a forecasted monthly consumption rate (JIT) or they keep them in stock for On-Demand delivery.

The benefit of automating is you get On-Demand component reliability through continuous replenishment. This significantly reduces your costs of AOGs, procurement, shipping, stocking components, and out of stock scenarios.

Through automation you get aircraft consumables and expendables when you need them, where you need them, and how you need them. Direct, automated shipments can be used for one maintenance hub or 15. It doesn't matter as the program automation is designed for your unique operation.

Think about it, how will automating reduce your costs and increase your reliability?

P.S. We  structure our consumable automation program around you. For more information on how we can support your needs through this program, simply fill out the contact form below!

Why A Last Minute Delivery System Can Save You Thousands

Have you ever heard of the dust thief? This thief is born in your warehouse and waits for the right time to attack. He attacks slowly, without notice. He waits for you to turn away and strikes without notice. JIT Inventory Can Save You Thousands

When you first purchase expendables for your aircraft maintenance needs, the thief is born. Maybe something changed where you no longer need the material you procured. After several months the thief gets older and begins to steal the cash value of your inventory.

The longer your inventory sits on the shelf, the more money you spend having to maintain it.

Nobody want's this dust thief in their warehouse, me included.

The less you spend on items that could be stowed away for years the more you'll have to fund your operations.

Now who wouldn't want more of that?

JIT Inventory, The Money Saver

Now imagine getting rid of all your unwanted, unused surplus material. You would free up inventory space for the components that matter most, free up staff having to maintain the unused surplus and reduce your holding costs.

The Just In Time inventory concept allows you to receive expendables as you need them. Since you'll be consuming the material immediately, you'll save thousands on unwarranted spending. Here are the 3 major ways you save:

1. Frees Up Your Inventory - If you have unwanted material taking up space then you'll either have to find additional space for new material or get rid of the excess. If you didn't have excess material taking up space you could down size your warehouse and save thousands on lease payments, mortgages and / or building maintenance costs.

2. Minimize Holding Cost - When you really sit down and think about it, how much does your unused material cost you? Think of the rent for the required space; equipment, materials, and labor to operate the space; insurance; security; interest on money invested in the inventory and space, and other direct expenses. Holding cost adds up doesn't it?

3. Eliminate waste - Now this can be the most troubling because the dust thief takes your expendables and literally throws them in the trash. Once your life limited expendables and consumables reach their expiration point, they're done. Wasted. The same goes for obsolete components. Once the manufacture comes out with an upgrade, the component is no longer of value to you, even on your shelf.

Managing inventory consumption is a strategy that can save you thousands if done right. Stock the important stuff and take in the expendables and consumables as you need them. The best way to do this is to utilize a JIT inventory system backed by the support of your competent suppliers.

P.S. Would you like to discuss the JIT solution we have ready for you? Click here