total cost of ownership

Learn How To Be An Effective Aircraft Material Buyer In 5 Minutes Or Less

Learn How To Be An Effective Aircraft Material Buyer In 5 Minutes Or Less

Do you purchase aircraft material like it was 1995?

You throw out an offer ($$$), cross your fingers, and hope for the best.

You say to yourself, I know it’s 5% of the quoted price but let’s give it a good ‘ole try.

And try you do...

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. 

Price vs. Cost: The Unreliable Truth of Confused Definitions

Price vs. Cost: The Unreliable Truth of Confused Definitions

Price. How important is it to you? How often do you try and get the lowest price? I’m sure you’re thinking to yourself, “It’s incredibly important.” and “Every chance I get.” And that’s fair. It’s also common to ask how much something costs. Or to reduce the cost of something. We often use price and cost interchangeably. That’s a mistake.

5 Quick Tips to Purchase Aircraft Material with a Total Cost Mindset

5 Quick Tips to Purchase Aircraft Material with a Total Cost Mindset

Do you purchase your aircraft material based on price? Of course you do. It seems logical. Many purchasing departments do. The better your price the happier you’ll be. But it doesn’t end up that way. 

Price and cost are different. Price is the money coming in, or your direct cost. Cost is the money going out, through your aircraft materials life cycle. As a purchasing professional, it’s important to purchase for total cost of ownership (TCO). It’ll help drive down operational cost, make you and your team more efficient, and give you the opportunity to make good decisions.