DHL wins €10.6 million aero parts deal
DHL Supply Chain, the supply chain arm of DHL has won a three-year €10.6 million contract to track and consolidate almost 25 million parts, worth an estimated €300 million, and their associated trace documents scattered over 100 locations around the globe. DHL will undertake the work for KPMG who are the administrators of insolvent UK […]
April 1, 2011
DHL Supply Chain, the supply chain arm of DHL has won a three-year €10.6 million contract to track and consolidate almost 25 million parts, worth an estimated €300 million, and their associated trace documents scattered over 100 locations around the globe. DHL will undertake the work for KPMG who are the administrators of insolvent UK firm Aero Inventory. Undertaking the contract also necessitates DHL expanding its Aerospace Hub in Singapore by 55 per cent to 6,500 sq metres. DHL Supply Chain will undertake to uncover, recover and consolidate inventory from places as diverse as El Salvador and China, as well as develop a proper ongoing sales channel aimed at enabling KPMG to maximise the sales value of the inventory, as well as give them the option of rebuilding Aero Inventory into a viable business. DHL will also establish three gateways in Canada, Hong Kong and Japan to consolidate parts released from Aero Inventory worldwide and then ship them to Aero Inventory’s single, global hub which DHL will run out of its Aerospace Hub – set up in 2007 – in Singapore to supply airline clients all over the world. The solution will also require the services of DHL’s Global Forwarding and Express divisions as well and leverages the company’s vast global network and experience, to withdraw all parts from customer locations. The Singapore hub was chosen based on warehousing and freight costs, operational and sales strategies and access to major air routes, the company said. DHL Supply Chain will maintain Aero Inventory’s global hub; DHL Global Forwarding will ship the parts in through its various gateways and DHL Express will send many of the components via Express service to airline customers. The hub started receiving inventory from January 2011 and sales will become operational in April. Under the deal, DHL aims to consolidate the entire inventory in Singapore by January 2012. This specialist aerospace facility will host one of the world’s largest inventories of aircraft parts, capable of supporting the major aircraft fleets of many of the world’s airlines and MROs. Aero Inventory was a company that up until November 2009 offered airlines and MROs such as Qantas, All Nippon Airways, Air Canada and Haeco, a unique service involving buying, storing, leasing and maintaining an inventory of various consumables and expendables for aircraft components such as airframe structures, engines, wheels, brakes, electronics and interiors. Aero Inventory purchased stocks of components from customer airlines and as part of a unique service offering in the industry, sold them back to the airline at the point in time when they were needed.