The trick behind turning slow-moving inventory into profit

2021-09-30 / 2 min

Sometimes keeping aircraft parts in stock to fulfill contractual obligations or seek opportunities once they arise, makes a valid business case for companies to pursue. However, if not done correctly the strategy can put unnecessary strain on cash flow and resources. Jevgenijus Petronis, Head of Product at Locatory.com, a leading online aircraft parts marketplace, provides some possible solutions on how to tackle this problem.

Manage parts differently

Different part numbers require different storage conditions. Just like milk has to be kept in the refrigerator not to spoil quickly, aircraft parts are subject to specific storage conditions. Not all items are consumed in the same amount of time, thus C category items cannot be held and handled like A items.

“For example, safety stock is a great planning strategy for fast-moving A category items, while the same cannot be said about B or C parts. For them, safety time is a better planning alternative to be used. When this strategy is used the average inventory is one-half the replenishment quantity plus the remaining existing inventory on-hand when the replenishment is delivered. By doing this, the organisations can keep much less safety stock and avoid the risk of scrapping the items due to excess inventory,” – comments Jevgenijus Petronis.

Sell off excess inventory

If by any chance the company has accumulated a large surplus of slow-moving inventory, there are several possible solutions to sell off the excess quickly.

Target the customer who may be ready to buy – develop a forward-looking model, where the contact list is based on historical orders, requests, equipment installed at their facilities, and possible future projects. This tactic is efficient and highly successful since, if researched correctly, it allows companies to stay one step ahead and move their stock effectively and quickly.

Explore online aircraft parts marketplaces – this practice is often called pooling, as the company provides access for interested parties to see the location, price, and quantity of a particular number. One of the most effective ways to enter large pools of such information is through dedicated online aircraft marketplaces.

“With more than 3500 buyers and sellers on the platform and 12.1 billion parts listed, it is easy to connect with possible clients and off-load stock quickly and effectively. With the added benefit of secure shipping services provided by our partners, the pooling and the final purchase process becomes easy, straightforward, and most importantly efficient and quick,” – added the Locatory.com representative.

By effectively managing and controlling the size of an inventory, it is possible to rectify the issue and turn slow-moving parts into a strong business model, and ultimately into profit. Whether it means a new planning strategy or new ways to connect with buyers and sellers, smarter stock management is an indication of a strong and versatile aircraft parts business.

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Future of fully electric flight

2021-09-16 / 2 min

If a jet were to use today’s batteries, 1.2 million pounds of batteries would be required just to generate the power of the jet engine it would be replacing. This weight would effectively need an additional eight jet planes just to carry that weight! About 200 kilowatts of battery power will be needed for liftoff, enough to power more than 100 average homes.

Due to the innovative engineering that made the modern jet engine efficient, it is difficult to replace with a battery-operated version. Electric planes use batteries to power an electric motor instead of jet fuel to power an engine. They need a motor that can turn electric power into mechanical energy and they need a battery. The modern jet engine has the highest power density of any machine, this is why jet engines are used in any aircraft.

The aviation industry is now looking for ways to integrate more electricity into certain functions of the jet planes while retaining the design of the jet-fueled engines. Short haul are much closer to going electric,  in particular if battery technologies become somewhat lighter. Smaller, short flight all-electric or hybrid planes might be available sometime in the 2030s.

The longer flights, however, would depend on significant innovation in battery technology, including necessary battery weight reductions. Aviation companies are also researching ways to introduce more electricity into the engine itself, replacing the gear box that drives the hydraulic pump, fuel pump and oil pump with electrical systems. Eventually, jet planes could evolve into hybrid vehicles, much like cars – with both a jet engine and an electric motor.

Electric airplanes could provide the scale of transformation required, and many companies are racing to develop them. Not only would electric propulsion motors eliminate direct carbon emissions, they could reduce fuel costs by up to 90 percent, maintenance by up to 50 percent and noise by nearly 70 percent.

According to Forbes magazine – Private companies like Tesla are also investing heavily in electric flight, hoping to become a big player, with Elon Musk claiming that the company’s batteries could achieve the needed power density for electric planes by 2023.

Source: www.forbes.com

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Trends In The Aviation Industry

2021-09-09 / 2 min

No doubt that the COVID-19 pandemic has triggered a technological advancement in the aviation industry. Given that air travel and overall aviation industry was affected in the previous year, the role of new technologies in revolutionizing air travel, cargo sector, global advancements in sustainability and autonomous transportation, in addition to new space services, satellite connectivity and much more, will play a vital role.

For this reason, many airlines have adopted innovative technology to maximize comfort and improve the travel experience. That said, here are some emerging trends in the aviation industry.

The big Move towards Sustainability

For some time now, the aviation industry has been experiencing the need for an eco-friendlier approach to air travel. Although leveraging sustainable approaches may require extensive research and development, fortunately manufacturers are creating more fuel-efficient aircraft frames, leveraging lighter materials, aerodynamic design changes, and alternative fuel sources.

Furthermore, aviation industry is reducing and eliminating emissions from aircraft ground operations in in the following areas: electric ground power units, electric passenger coach transportation, recycling and waste management. There are innovative changes beyond carbon reduction, new cabin crew and pilot uniforms made from recycled plastic bottles.

Cryptocurrency as a Payment Option

With Starbucks and Microsoft now accepting Bitcoin as a payment, should the travel industry be doing the same? Despite the fact, it is not yet legalized in the aviation sector, bitcoin and other cryptocurrencies show tremendous potential. The aviation industry loves innovative technology and will adopt those that show great promise. Leveraging this innovative payment option could make flight bookings easier since cryptocurrency payments are faster and incur fewer transaction costs as compared to credit card payments.

Contactless technology

The trend for a contactless passenger experience in airports has been underway for a number of years already, but the COVID-19 pandemic rapidly accelerated the adoption of contactless technology. The contactless experience has also reinforced changes to the way people shop at the airport terminal. The “Just Walk Out” technology offers shoppers an innovative and contactless walk-through experience that allows travelers to shop safely and contactless.

Digital health passports

The concept of health or immunity passports is not new, and has, indeed, been around for some time. The CommonPass project was established in 2019 after a partnership between the Common Project, a coalition of private and public partners, and the World Economic Forum. This platform verifies vaccination records and lab results by encouraging passengers to upload their results to their mobile phones. The COVID-19 pandemic has and continues to challenge the aviation industry, but the efforts that have been and continue to be made in terms of technology, like advanced self-service and biometrics, robotics & automation give hope for an optimistic.

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