Aircraft consumables and expendables are the inglorious components with huge effects.
Airlines cannot survive without them. With millions of different part and model numbers, it get’s incredibly complex on how to structure consumption.
Should you stock items and risk having a shortage
or spoilage? Should you invest thousands of dollars for safety stock? Are you willing to spend money on inventory holding costs? Who should you procure from and how often? How do you handle AOGs for these items?
Your requirements cover thousands of low cost items that have a huge cost impact. Demand is hard to predict and who wants to spend the money shipping low cost items for urgent matters? With thousands of parts, high criticality, it gets costly to order and manage.
In a worst-case scenario, even a small part that’s missing can cause you to have an Aircraft on Ground (AOG). Aircraft consumable and expendable management is stressful with many unpredictable variables to consider.
An Airline Success Story
Aircraft expendables and consumables are the pieces to the aircraft that get no attention. They are like the water boy in a sport. They get no credit but the players need water or they’ll dehydrate and crash. It’s the same concept with an aircraft.
A VP of Maintenance for a mid-sized airline reached out to us when he decided that they had enough with their current expendable and consumable strategy. In order to get deeper we had to understand his situation, so we asked him, “What’s the biggest problem you face with your current strategy?”
He simply replied, “It’s entirely inefficient. Money and time is leaking from my operation at all angles. When I calculate the time and money we spend processing orders for repeat items and stocking without a core goal, thousands of dollars are wasted. This isn’t our strength and this isn’t where we make money. ”
It was a rather easy solution for us to fix as we work with such situations often. But for this VP, his biggest concern was wasting money and not being efficient. The VP then sent us all of their expendable and consumable consumption for the last 2 years. He also added their high usage items and we built a forecast with those items in mind. After everything was completed we built a mix of On-Demand and Just In Time material solutions. A monthly $ave By Consolidating shipment interval was set for select high usage items. We also built an On-Demand stock portfolio for other items that he could tap into as needed based on his predetermined consumption.
He didn’t have to worry about sending any more POs, RFQs, or back and forth correspondence, the items would just arrive to his facilities where he wanted items shipped to.
Through this collective focus he was able to regain $200,000 in the first year back into his operating budget. He was procuring and stocking less, but receiving expendables and consumables when and as needed for a fixed guaranteed price and availability.
Looking for more information?
For whatever reason, you're looking for more information. You may have a big project, or you're confused how to start, or you may even be wondering how this will impact your operation. Look no further. That's what we're here for.
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The Benefits to you
Our On-Demand and Just In Time consumable and expendable solutions will allow you to focus more energy and money on your most important activities. It will free up hundreds of hours of your time processing orders and it gives you a better way to predict and forecast costs.
You'll be able to predict costs more efficiently as pricing is fixed and guaranteed for 12 months.
Reduce Shipping Costs
Your shipping costs will be significantly reduced as we will utilize our $ave By Consolidating methodology and streamline the supply chain to your destination of choice.
Remove your PO & RFQ process
Never process a PO or RFQ again. This program is based on a 12 month or greater forecast and items arrive at your door as needed.
Our 24/7 AOG service is different. Your dedicated account manager is your point of contact at all hours. Work with who you know and know we've got your back.
Stop worrying about availability for various product lines, we guarantee stock so you can focus more on your core activities.
Spend Less Money
Less money will be wasted on stock and you'll retain more cash for operational objectives.
Reduce Need for follow-ups
Significantly reduce the time you spend on following up with orders as you'll know exactly what items you're short on and what items are being shipped to you for stock replenishment.
Every component you receive will be backed by our quality program.
GUARANTEED SERVICE LEVEL
AOGs are a thing of the past as you'll have guaranteed service levels for your most important items
Reduce Holding Costs
Holding costs pose problems to your free cash flow. With our JIT and On-Demand programs you'll reduce your inventory holding costs. That cost is on us.
Reduce Inventory Costs
Inventory is expensive and holding costs pose problems to your free cash flow. With our JIT and On-Demand programs you'll reduce your inventory holding costs, that cost is on us.
Dedicated Account Team
Do you like working with robots or someone new every time you speak to a company? We didn't think so, which is why you'll receive dedicated account management.We understand that trust is built on relationships.