Boeing [NYSE: BA] and UFC Aerospace recently signed an agreement that will allow them to significantly reduce an airline's maintenance-related costs.
The contract arrangement is part of Boeing's Integrated Materials Management (IMM) initiative. Through this program, Boeing and suppliers such as UFC maintain an airline's inventory of maintenance supplies, including spare parts, and provide items only as needed. By reducing the airline's own inventory, IMM reduces an airline's cost of doing business.
"Boeing is excited to add UFC to the Integrated Materials Management (IMM) family of customers and network suppliers. UFC has the background and experience to help us further expand and improve the IMM service network with airlines. Our customers also benefit from this agreement as we continue to improve service and reduce maintenance costs through a more integrated supply chain," said Mark Owen, vice president of Material Management for Boeing Commercial Airplanes.
UFC Aerospace, a distributor founded in 1972, provides worldwide inventory management solutions including customized integrated supply programs, kit packaging and related inventory management services. In addition, UFC distributes a complete line of aerospace consumable products including fasteners, chemicals, seals and power supplies.
"UFC is committed to providing Boeing and the IMM airline customer network with a customized inventory management solution. We recognize our responsibility to Boeing and our mutual airline customers to continuously improve our integrated supply services in order to facilitate cost reductions, lean initiatives and profitability for our valued customers," said Doug Davis, president of UFC.
IMM is considered the next step in expanding Boeing supply chain services to provide value to both airline customers and supplier partners. Current customers for IMM are AirTran, All Nippon Airways, Delta, Japan Airlines, and Japan Transocean Air.