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IPP grows strongly

News   •   Jun 23, 2015 15:45 CEST

Under IPP, Satair Group takes on the management of around 350 small/medium-sized suppliers of aviation spare parts providing a single and reliable point of contact for an airline or MRO.

Satair Group integrates the demand from end users and through this improves planning accuracy and product availability to and from suppliers compared to what single manufacturers and operators might be able to achieve on their own.

IPP is proving very successful and over the past two years up to 20% annual growth has been achieved. More than 100 airlines worldwide, operating varied aircraft types, are signed up for long-term IPP contracts, but many more airlines have bought IPP-originated spares from the Satair Group portal on an ad-hoc basis.

Jesper Scharling Sørensen, Director Competitive Business for Satair Group explains that IPP simplifies the structure of an airline or MRO’s supplier base. He said: “Usually 80% of the supplier base accounts for only 20% of the purchase volume. We look after the remaining 80% of the purchase volume to reduce the customer’s vendor interaction, saving time and cost.”

With Satair Group as the single source supplier, complexity is reduced for the customer. Accounting and payments are simplified and inventory costs are reduced as parts are stocked to meet demand from numerous airlines. Delivery performance is enhanced with a target of 95% on-time performance. Overall customer savings of between 5-15% of the cost base are normal.

For growing airlines IPP is a real benefit as the ramp-up of supply chain needs can be met easily through the programme without the need to recruit specialist staff.

Suppliers also benefit. With IPP they achieve better sales volumes through Satair Group’s strong airline connections, production flows are eased due to Satair Group’s improved order forecasting and 24/7 AOG coverage is provided at no extra cost.

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