total material cost

A Failed Mindset: “No One Will Pay More For An OH Unit When SV Is Cheaper.” Who Won This Debate?

A Failed Mindset: “No One Will Pay More For An OH Unit When SV Is Cheaper.” Who Won This Debate?

I was on the phone with a supplier and wanted to argue with him. It took immense self-control.

We needed an actuator for a maintenance project, so I called the supplier for a quote.

The actuator cost between $15,000 to $25,000 depending on the condition.

He had one serviceable (SV) and overhauled (OH) unit.

He asked me what condition I preferred. I told him it depends on the tag date, but I prefer overhauled.

In a quick reply, he said he had both, but he’ll quote SV as why would I pay for OH when SV costs less.

5 Simple Hacks To Reduce Your Total APU Cost

5 Simple Hacks To Reduce Your Total APU Cost

A failure to properly purchase your APU can cost you thousands of dollars and hours of your time.

Between the financials, the POs, the chasing, the follow-up and all of the small details, there’s a lot to processing your APU purchases.

So what’s the best way to process your next APU?

The Painful Material Lessons of a Growing Fleet

The Painful Material Lessons of a Growing Fleet

Is your fleet growing? Do you feel prepared?

Scrambling to resolve AOGs, running out of money, and not having enough time to do everything are clear signs, you're having growing pains.

It's those pains you feel deep in your chest. Like a 2-ton brick pressing down on your core.

On one hand, it's great your fleet is growing. On another, it's causing you tension. I like to think of as a puzzle. You need to scope the landscape and then begin laying down your puzzle pieces.

The Top Trend Impacting Airline & MRO Material Procurement Results

The Top Trend Impacting Airline & MRO Material Procurement Results

How many decisions do you think you make in a day? 1. 1,000. 10,000. Think again. It’s estimated that the average adult makes 35,000 decisionsevery single day.

Combine that with all the options you have, once you’ve made your 35,000 decisions, and you’ve gone through 100,000 choices.

And that’s the top trend affecting airline and MRO material buyers. Choices. The dire onset of information overload.

The Easiest & Most Cost Effective Way To Manage Your Expendables

The Easiest & Most Cost Effective Way To Manage Your Expendables

Is processing your aircraft expendable orders like cleaning a toilet? 

It’s messy, time-consuming, and there are more productive things you could be doing. 

Likely!  

But whether you like it or not, these low value, high volume items are an important asset to your fleet. 

They’re crucial! 

Yet, they take up a ton of time. 

Why Are Expendables And Consumables So Hard To Manage?

Why Are Expendables And Consumables So Hard To Manage?

The email hits your inbox. 

You glance at the subject line and it reads “Need ASAP for XTY-123.” 

Maintenance is requesting material for this week’s project.

You anxiously open the document. 

It’s expendable and consumable material: 

  • 85 bolts
  • 950 pins
  • 247 o'rings
  • 5 switches
  • 6 quarts of sealant
  • An occasional rotable

The request is 100 line items. 

Some items you’ve never purchased, while others are high volume for you but your inventory level does not meet this maintenance need. 

And it’s not that you haven’t done this before. 

It’s just damn difficult. 

 

Price vs. Cost: The Unreliable Truth of Confused Definitions

Price vs. Cost: The Unreliable Truth of Confused Definitions

Price. How important is it to you? How often do you try and get the lowest price? I’m sure you’re thinking to yourself, “It’s incredibly important.” and “Every chance I get.” And that’s fair. It’s also common to ask how much something costs. Or to reduce the cost of something. We often use price and cost interchangeably. That’s a mistake.