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End-of-Life Product Support
A large aircraft OEM was a
major commercial and military aircraft designer and manufacturer for many
years. Due to market conditions and a change of corporate direction, a
decision was made to reduce work effort and support of the commercial line
of business. However, agreements with operators left the need for support
of the remaining fleets.
In addition to support issues,
the OEM had large amounts of inventory, some of which was on the books at
full cost while occupying large amounts of warehouse space. Most of the
remaining inventory was large structural items that would be virtually
impossible to manufacture today – due to tooling and original suppliers
issues.
HTAS worked with the OEM and
developed an “end-of-life” revenue and sales forecast. With that
information, a contract was written and HTAS took over all sales, marketing,
parts support, purchasing and customer interface for the remaining
commercial aircraft for the OEM. Due to FAA obligations, the OEM retained
all of the design and engineering responsibilities under their type and
production certificates.
HTAS purchased the remaining
inventory and had it shipped to our Cincinnati warehouse, where we still
maintain that inventory for possible need.
The advantages for the OEM
are:
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Elimination of 60,000 square feet of warehouse space freed for other use.
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All
sales people reassigned to other higher profit projects.
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Material handlers and FAA designee responsibilities eliminated.
v
Contracts and purchasing people reassigned to other positions.
v
Inventory ownership transferred to HTAS.
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