The aircraft parts consignment experts help operators convert their spare inventory into cash and free up space in hangars and warehouses. The experts cover everything from accessories to avionics systems, instruments, propellers, and consumables.
Reliability
Using a consignment inventory program can help startup airlines and small fleet operators avoid the high upfront costs of purchasing and maintaining an airframe spare parts inventory. In addition, having the parts onsite minimizes shipping and courier costs.
An aircraft parts consignment program’s streamlined processes and reliability ensure that your freight will arrive safely at its destination on time. It is also easy to divert your freight if you need to send it elsewhere on short notice. Airplanes operate on strict schedules that make it fast and reliable to ship freight across the globe. This is the only way to get products to their destination quickly and reliably. This is one of the many reasons businesses ship their freight via airplanes.
Reduced Risk
Rather than a fixed cost for stocking spare parts, under an aircraft parts consignment arrangement, operators pay only for the specific part they consume. This also minimizes shipping costs by keeping the parts onsite for immediate availability. Owners should be sure that their chosen consignment program has back-to-birth commercial ownership traces on major components and life-limited parts (LLPs). This is important for reputational reasons and to protect them against export control infractions.
An operator should also ensure that the consignee carries adequate product liability and hangar keeper liability insurance. They should also inquire about the consignee’s marketing strategies and customer base and how often they update their inventory on parts locator services. This indicates how proactive the program is in managing its assets.
Faster Shipping
A key benefit of consignment inventory is that the supplier replenishes parts consumed, minimizing shipping time and aircraft downtime. Consignment inventories are often tailored to an operator’s needs and can include high-moving and no-fly parts. With a material portion of the global fleet still grounded due to pandemic restrictions, air cargo rates are higher than ever. As passenger flights increase and belly freight space becomes available, being a known shipper will help you reap the benefits of faster transit times and lower rates.
Lower Costs
Aircraft parts consignment can help operators save money and valuable storage space by turning unused, unwanted, or unneeded components into cash. However, selecting a consignment program that operates in your best interests and protects your assets is important.
For example, ensure your chosen program can properly insure your inventory from purchase to shipment and maintain the appropriate liability coverage to recover costs associated with teardown, storage, and repair. In addition, ensure your parts are adequately insured to cover any potential loss during transit, including cargo damage and theft.
Many airlines utilize spare parts pooling as an effective strategy to reduce the cost of stocking expensive aircraft components and ensure instant access to critical replacements. This leads to reduced Aircraft on Ground (AOG) time.
Increased Value
An aircraft’s value can increase dramatically with complete records showing prompt responses to Airworthiness Directives and other maintenance needs. An aircraft with up-to-date technology, such as new avionics, also increases its value. Aircraft consignment programs allow operators to extract value from their assets and turn dormant inventory into cash. When choosing an aircraft parts consignment program, look for one that physically maintains its inventory and provides 24/7 response to customer requests. Ask the program about its customer base, marketing strategies, and consignment history. Ensure that its inventories are listed in multiple parts locator services and that these lists are updated regularly.
