Community Research and Development Information Service - CORDIS

Integrated materials management system

The objectives and results of this project are simply to introduce an enabling information technology (IT) facility to the airlines procurement processes to reduce the investment in spare parts which has accumulated through compliance with vendor recommendations and inadequate collaboration over a number of years. This involves: attacking the problem of redistribution of surplus and excess by providing the facility to actively buy and sell within the industry as a routine part of the procurement process; setting standards for the definition of excess/surplus with agreement of the Arab Emirate Airline (AEA) members and introduce subroutines into each IT system to act as a catalyst to isolate appropriate parts; establishing guidelines for the prioritising and pricing of such parts; establishing procedures and facilities to manage the processes and share procurement where possible through a central facility to achieve the benefits of economies of scale and buying leverage.

This system can be extended throughout the AEA members and in the process have a single operating procedure in the area of redistribution of spares. As this is a managed system it is possible to add to the functionality to exploit the benefits by allowing a progressively increasing degree of outsourcing for each airline to the business which will have been created. Later non AEA airlines, original equipment manufacturers (OEM) and traders can participate and develop this system. There is no new technology involved in this project, the key technical achievements being the facility to maintain current data on available stocks through automatic subroutines, and provide access to this data as part of routine procurement. The creation of Sales Order Processing facility for third party procurement on the Internet is a further enhancement, allowing exposure to the world market for these materials.

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National Avionics
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