Seattle Consulting, Inc.

Generating Aftermarket Services Revenue for Boeing Commercial Aircraft

As one of the two largest OEMs for commercial aircraft, Boeing also generates well over a billion dollars a year in the sale of spare parts.

In the late 1990's and early 2000's, airline customers were becoming increasingly dissatisfied with the traditional spare parts supply chain. Delivery performance was spotty and the airlines were required to manage and own tens of millions of dollars in spares inventories. Boeing also had over a billion dollars in inventory with a turn rate of under once a year.

Boeing Spares asked Seattle Consulting to work with Boeing to:

Improve service levels to airline customers

Reduce Boeing's inventory levels while increasing turns

Generate significant service revenue for Boeing, over and above spare parts sales.

Seattle Consulting worked with a Boeing / airline team to redesign the supply chain, from the mechanic to Boeing to Boeing's suppliers and repair stations.

The result was the creation of a 21st Century Supply Chain that powered Boeing's Integrated Materials Management (IMM) service offering. The results included:

Improving service levels to mechanics from the high 80% to the high 90%

Reduction in Critical and AOG order volume from 70% to less than 10%

Improved inventory turns at Boeing and the eventual transition away from inventory ownership for customer airlines.

The IMM service offering has generated over $500m in long-term service contracts for Boeing Spares.