Airbus Managed Inventory proves it's worth at Avianca

Following a one year trial, Avianca S.A. of Colombia, has signed an agreement to fully implement the Airbus Managed Inventory (AMI) service provided by Satair Group.

AMI is an automated inventory management solution that supports Airbus customers in reducing their inventory holding costs. It captures material consumption information in real time and automatically triggers electronic replenishment orders within inventory levels set by the customer.

Rodolfo Perez, Account Director for Satair Group explained further: “AMI guarantees high-on-shelf availability for high-moving and non-repairable parts while decreasing the overall inventory stock level and reducing the cost of planning, ordering and shipping the material.

“Another benefit to the customer is that, if they desire, we can invoice all shipments on a monthly basis which significantly reduces the financial workload. Plus, we can offer consolidated shipments from different warehouses in our global network, including our new Miami location, where we aggregate all orders generated during, let’s say a week, into one shipment, which is a lot more efficient logistics-wise.”

Avianca operates a fleet of over 100 A320 family and A330 long-range aircraft and having trialled AMI for a limited number of parts, they gained confidence in the service, leading to the launch of the full service.

Rodolfo added: “We have worked hard with Avianca to set up a seamless integration between us and we have regular review meetings with the airline to analyse the performance of the service. Our aim is to grow the scope of the service so we also look at other expendable and consumables parts that may be included. All this frees the airline up to focus on strategy and core business while we perform this work behind the scenes.”

When the Avianca agreement was announced Paul Lochab, Chief Commercial Office for Satair Group, stated: “AMI is a prime example of how Satair Group provides world-class material management and supply chain services and solutions to world-class customers.”

With Avianca as the first Latin American customer for AMI Rodolfo adds: “Building on this success we are promoting this service to other Latin American airlines and expect another customer by year-end.”