INDUSTRY INTERVIEW: Derco Aerospace
Heinrich graduated from Marquette University in 1991 with a Bachelor of Science in finance and subsequently received his master’s in business administration from Marquette University in 2005.
Q: Please provide some background on your company and the company’s work with DoD in the logistics arena.
A: Derco Aerospace, a Sikorsky Aerospace Services company, has supported the C-130 transport aircraft and other transport and fighter platforms for more than three decades. Derco has evolved into a full service integrator of material, logistics and sustainment and has proudly supported the U.S. warfighter for more than 20 years by providing timely and best value delivery of aircraft, spares and repairs. Derco maintains a strong relationship with the DLA starting with the 54H60 propeller Virtual Prime Vendor program in the mid-1990s and is regularly looking for ways to enhance performance and provide the warfighter the right material and service at the right time and price. Derco also supports the Air Force, Army and Navy as a subcontractor on several integrated logistics programs.
Q: Please indicate the primary business areas of your company.
A: At the core of our business we stock quality spares from first and second tier platform and system OEMs and deliver in an effective manner to operators around the globe. What separates us from brokers and other distributors is the level of integration and value-added services we provide at both ends of the supply chain. To the OEM we aggregate demand and provide unparalleled global reach through our marketing channels. To the fleet operator we provide supply chain solutions, to include performance based contracts, sophisticated demand planning and replenishment models as well as continuous improvement solutions to process, reliability and performance of supply chains and aircraft. As a logistics partner, Derco designs logistics solutions around a simple goal, keeping the customer’s aircraft mission ready. Derco’s FAA-certified repair facility provides the best value and highest quality repair and overhaul of aircraft accessories and components.
Q: As a major player in the military logistics arena, how does Derco plan to focus on meeting key DoD logistics objectives?
A: We certainly recognize the challenges facing DoD program managers, maintainers and operators as they will be tasked with even more daunting requirements to “do more with less” in support of an everaging fleet operating at ops tempos far higher and longer than ever envisioned. Mirroring AFSO21 and other transformation initiatives Derco too is engaged in leaning and improving processes internally and offering a myriad of performance solutions to help our customers to not only simplify but also make aerospace more affordable. We no longer view our business as being transactional—based on a vendor role, but rather we take a bigger picture view and have positioned ourselves as a partner with our customers.
Q: What new programs is your company working on in partnership with DoD, agencies and the military services?
A: Derco has been instrumental in the Air Force’s transformation efforts at Warner Robins ALC [WR-ALC]. Derco is a subcontractor to M1 Support Services, a small, women-owned, veteran-disabled business contracted by WR-ALC to provide support of the material logistics process for the High Velocity Maintenance [HVM] initiative. M1 and Derco are utilizing many of the AFSO21 tools to streamline the HVM material integration process at Robins. M1 and Derco are developing processes, standard work, and documentation for integrating aircraft PDM material from existing government and contractor sources into point-of-use kits for the WR-ALC HVM program. With this kitting capability in place, material will be pre-positioned and available to the technician at the aircraft, shortening the amount of time aircraft remain in the maintenance process.
Q: What are the main challenges facing your company in meeting the needs of the 21st century warfighter?
A: Derco’s number one challenge in meeting the needs of the 21st century warfighter is data integrity for legacy platforms. While new weapon system platforms are being designed and sustained with sense and respond logistics systems, support of legacy aircraft becomes supremely challenging without data fidelity of time on wing, effectivity and other reliability metrics. The best demand models are only as good as the data fed to them. The lack of robust data fidelity makes accurate forecasting a challenge in meeting the warfighter’s enterprise requirement to have the right part, at the right place, at the right time, and at the right price. ♦
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