Singapore Air Show

Aviall’s aftermarket now has global reach

 - December 4, 2006, 1:05 PM

Dallas, Texas-based aftermarket parts and services supplier Aviall (Stand A911) has launched Operation Global Reach, a program designed to showcase the company’s best commercial practices on material and supply chain management to the world’s military market. Services include forecasting, export licensing, reverse logistics, customer kitting and other supply chain management solutions such as certification document accessibility. The inventory includes replacement parts for a maintenance schedule and AOG incidents.

Aviall services, markets and distributes more than 650,000 aircraft and engine parts and chemicals from 220 OEMs to thousands of military and comm-ercial customers worldwide. The company runs 37 customer service centers in North America, Europe and Asia/Pacific.  

Operation Global Reach draws its lifeblood from support for Rolls-Royce T-56 turbine engines, which power the C-130 and P-3, and the Rolls-Royce Model 250 for military helicopters, according to company director of military programs Morris Brown. More than 60 countries operate Rolls-Royce T56- and 250-powered aircraft, for which Aviall serves as the exclusive parts distributor. Asia/Pacific operators include Singapore, Japan, Australia, Pakistan and New Zealand.

Aviall Represents Smiths

Aviall arrived here at Asian Aerospace already flush with new business in the civil sector. It most recently signed a 10-year contract for worldwide aftermarket rights from Smiths Industries worth some $2 billion. Under the terms of the deal, Aviall will assume its service provider responsibilities for the aftermarket after a transition period of several months. For this year, the company will receive a commission for civil product aftermarket sales during the transition period and will begin to report full revenues when it assumes full operational responsibility.

Aviall expects first-year equivalent revenues to range between $130 million and $140 million. As Smiths’ civil aftermarket provider, it will engage in inventory forecasting and management, field sales, marketing, product fulfillment and quality management.

Smiths products covered by the agreement include actuators, holdback devices, propeller systems, flight control systems, landing gear systems, thrust reverser control systems, flight management systems, power systems, modules, navigation equipment and supplemental power systems.

Other recently announced deals include Aviall’s partnership with Boeing on the Chicago-based company’s Integrated Materials Management (IMM) program, designed to manage spare parts and maintenance supplies inventories. The IMM program helps airlines avoid the cost of holding inventory, addresses problems associated with spare parts obsolescence and improves the productivity of materials management.

Aviall’s set of supply chain and logistics benefits includes order processing, stocking and fulfillment, automated inventory management, and reverse logistics to OEMs and other customers.

Aviall also has landed a revenue-sharing program (RSP) agreement with General Electric to exclusively supply a designated number of aftermarket parts for the life of the CF6 engine program, including the in-production CF6-80C2. Under the deal, Aviall will manage 11 vendors for GE to fulfill the RSP’s designated parts requirements. It will also contribute inventory forecasting and management product fulfillment and quality management.

The company plans to upgrade its quality standard from ISO 9001:2000 to AS9120 as part of the implementation. The contract marks Aviall’s first direct management of an OEM’s manufacturing supply base.