INDUSTRY INTERVIEW: Aviall Services Inc.
Senior Vice President of Operations
Aviall Services Inc.
Q: Please provide background information on Aviall and its work with DoD in logistics.
A: Aviall, a wholly owned subsidiary of Boeing, is the world’s leading diversified after market parts services provider to the aerospace industry. It operates with 230 OEM suppliers and 30,000 customers in general, business, commercial and military aviation. Founded in 1932, Aviall invests in and remains strong in all market segments and is a GSA contract supplier. Aviall partners with Boeing in commercial aviation services and integrated defense systems. Aviall’s military customers in South America, Middle East, Africa, Europe, and Asia and the Pacific Rim accounted for about one-third—31 percent—of its global sales in 2008. For its DoD customers, Aviall increases OEM efficiency, extends its reach to every front, maintains a global distribution network, saves time and money with advanced technology and working capital reduction, and assumes risk and burden of demand uncertainty.
Q: Please indicate the primary business areas of Aviall.
A: Through its network of 38 locations around the world, Aviall provides shop forecasting, order fulfillment, marketing and sales, inventory deployment, warehousing, distribution, customer support, and global product and publication services. Aviall also operates FAA repair stations for wheel and brake, battery and hose assembly. It aggregates demand from customers around the world to provide steady demand for each OEM to enhance efficient production cycles. Its single-source, planned order systems improve capacity planning, scheduling and flexibility. Aviall’s technology advantage comes from best-of-breed software, including real-time integration of supplier systems and customer systems. OEMs and end-users benefit from product allocation, Web purchasing, inventory control, warehouse management and sales force integration. Aviall’s latest research reveals an average of 3,900 shipments per day with a 99.96 percent error-free shipping and 99.99 percent same-day shipping. The warehouse management system also provides part traceability, stock rotation and shelf life control. Aviall’s OEM list includes General Electric, Rolls-Royce, Honeywell, Pratt & Whitney, Smiths, Spirit, Champion, Saft, Michelin, Goodyear and Goodrich.
Q: As a major player in military logistics, how is Aviall helping DoD meet current key logistics objectives?
A: Aviall’s key programs include its T56 third-party agreement with Rolls-Royce and the U.S. Defense Logistics Agency. Service levels averaging greater than 92 percent have brought much recognition to RR from DLA and other DoD agencies. Aviall executes orders behind the scenes for thousands of T56 engines in service around the world, including application in the C-130. Aviall’s helicopter logistics contract with the U.S. Army integrates all logistics functions for the RR M250, including spares and engine support for the Kiowa Warrior. Aviall stocks Army-owned assets in segregated storage areas, shipping to the field JIT [just in time], and facilitates the repair cycle and maintains asset visibility. Aviall also supports the KC-10 engine for CF6 at Kelly Aviation Center in San Antonio. Aviall employees have received U.S. Army commendations for substantial improvements in mission capable rates. Aviall’s international programs include T56 and J85 support in Brazil, Chile, Greece, Spain, Austria, Thailand, Australia, Indonesia, South Korea, Singapore and Taiwan; T56 sales in Argentina; support through RRESO in Saudi Arabia, Egypt, Morocco and Tunisia; and T56 support in France and Portugal. Aviall also ships direct to the U.S. Navy and Coast Guard.
Q: What new programs is Aviall working on in partnership with DoD agencies and military services?
A: In 2008, Aviall contracted with the U.S. Army to provide spare parts for maintenance and upgrades of route clearing vehicles in Iraq and Afghanistan. The spares include bullet-proof glass, wheel and axle, transmissions and other major parts for these specially equipped vehicles searching for and eliminating IEDs. Aviall’s other new programs include DLA subcontract support with Polchem, wing replacement spare parts support for the A-10 Thunderbolt II [Warthog], spares and RSPL support for Boeing’s new aircraft P-8 Poseiden, and demand forecasting and spares support for the KC-135.
Q: How has the Boeing acquisition of 2006 affected Aviall’s ability to help support the 21st century warfighter?
A: Aviall’s partnership with Boeing allows the companies to leverage each other’s strengths. Boeing is the preeminent defense provider with outstanding resources and tremendous talent. Aviall maximizes Boeing’s strengths with its unmatched supply chain management. Together Boeing and Aviall provide a great combination of skills and services. Aviall’s service level is reinforced by its solid financial capacity and seasoned leadership. ♦