3 simple ways to turn surplus inventory into cash

Feb 17th, 2012

The common purpose of aircraft parts supply chain is to procure the required part in due time at the most convenient location. The secondary objective is to implement the most effective parts acquisition management processes. However, nowadays the innovative aviation business models and the dynamic growth of passenger flows, especially in the emerging markets put forth the third no less significant objective: airlines are increasingly concerned with finding alternative ways to turn the surplus aircraft spare parts warehouse content into increased revenues.

“Due to re-developing aircraft fleets and ever changing circumstances airlines are often left with surplus aircraft spare parts and components. In order to solve these issues companies aim at completing the sale of the owned surplus spares as quickly as possible thus securing a healthy turnover,” explained the CCO of Locatory.com Vytautas Vorobjovas.

According to Mr.Vorobjovas, many companies stocking surplus aircraft parts are faced with several problems. Firstly, they do not possess sufficient resources to even identify which parts should be considered as surplus and which should be stored for a longer while. Secondly, some companies may obtain an aircraft part, component or package for USD100 000 and then receive an offer to re-sell it for just USD 5000. Thirdly, airlines often lack internal capabilities or fail to find the right niche for selling their surplus MRO parts.

It is only natural that everyone is interested in not only selling but also generating profits

In such cases airlines wishing to turn their surplus inventory into cash may choose from several solutions. They might sell that inventory to MRO companies or relevant suppliers that take on the role of brokers. They can also choose to sell the surplus package for a much smaller price. Alternatively, airlines may turn to the increasingly popular internet based solutions, such as aircraft parts platforms where airlines worldwide gather to find the required parts in due time at the most convenient location.

“It is only natural that everyone is interested in not only selling but also generating profits. With the help of specialized platforms, MROs, sellers and airlines can upload their entire surplus inventory and expect to receive the most competitive price. Such platforms are irreplaceable when receiving the required parts quickly is necessary for solving AOG situation thus avoiding costly downtimes,” says V.Vorobjovas.

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