Etihad Airways Engineering, the largest commercial aircraft maintenance, repair and overhaul (MRO) services provider in the Middle East, has signed a Letter of Intent with DHL Supply Chain, the contract logistics specialist within Deutsche Post DHL Group, to outsource its entire internal logistics functions.
DHL Supply Chain will manage stores, local transport movements and associated supply chain planning at the Etihad Airways Engineering hub at Abu Dhabi International Airport.
Jeff Wilkinson, Chief Executive Officer of Etihad Airways Engineering, said: “We see this agreement as a win-win opportunity not just for Etihad Airways Engineering and DHL Supply Chain, but also for our customers around the world who will be served more efficiently and cost effectively as an outcome of the partnership.”
David Christmas, CEO, DHL Supply Chain Middle East, Russia & Turkey, said: “This is a significant business win for DHL in the United Arab Emirates. We have a long-standing relationship with Etihad Airways Engineering, which will continue to maintain our aircraft. Our new partnership will build on and broaden this relationship, synergizing the unique strengths of each partner to maximize efficiency and profitability.
“The supply chain performance and solution has a major impact on the effectiveness of the MRO function. Our expertise and services will help Etihad Airways Engineering to progress towards its vision and meet its strategic agenda effectively. Transforming the MRO logistics and warehousing solution will help them to remain competitive today and build capability for tomorrow.”
The supply chain will be scalable in order to respond to MRO sector growth and will be able to adapt to future operational requirements. By introducing logistics planning and control, DHL brings robust processes to Etihad Airways Engineering’s supply chain to which aligned storage capacity planning and inventory policies compose a major element. Response lead times will be reduced through efficient pick processes and performance indicators for every logistics and warehousing function. Apart from process optimization, DHL will also introduce several changes in the layout of Etihad’s current warehouse, improving the space already available and setting up an external off-airport warehouse able to accommodate necessary inventory and part storage.