How does it work?

Indo Aerospace Solutions will be liable to keep stock on pre defined quantities of consumable material on behalf of the client. 

This stock is the property of Indo Aerospace Solutions and therefore the client can decrease its own stock accordingly. No cost is involved for the client. It is very important to note that the client and Indo Aerospace Solutions, through such an agreement, operate on a partnership basis.

Goals, advantages and steps

•  To define a consumable material stock listing with annual usage that will be held available at all time by Indo Aerospace Solutions for the duration of agreement.

•  Location of consigned material: if required some items could be consigned at the client’s premises and/or at Indo Aerospace Solutions premises. 

•  Compile a price list (valid for a calendar year) for the said consumable listing. This will ensure that the consigned stock will be economical (taking into account freight charges and location/availability). 

•  Process saving. No more time spent by buyers sending out RFQ to various suppliers as price list / availability are predefined for a calendar year.
•  Freight saving. Material on consignment is offered EXWORKS-Noida, India (Indo Aerospace Solutions facility) which can be consolidated on a weekly/monthly basis.

•  Cost rationalization. Your stock can be totally depleted and gradually taken out of your books as the consumable consignment stock does not belong to the operator. This also reduces the operator's taxation level (due to reduced stock).

•   As soon as you will draw material from the consumable consignment stock listing, Indo Aerospace Solutions will be responsible for invoicing/shipping/replenishing this stock. You will have more time to focus on core activities (such as repair, manufacturing etc.). Effectively, deliveries will occur on a just-in-time (JIT) basis to the operator.

•  Consumption report. The client will have to supply Indo Aerospace Solutions with a weekly or monthly report for stock consigned at the client premises. Indo Aerospace Solutions will then replenish this stock automatically and will invoice the client accordingly.

•  To prevent critical or AOG situation for consumable items, and therefore save time and money (due to grounded aircraft or additional freight charges). For the purpose of budgeting and financial planning, such an agreement facilitates the provisioning process, as all parameters are predefined at the start, and remains fixed for the duration of the agreement.

•  Flexibility, the consumable consignment stock listing can be amended and items could be added or quantities increased.

•  Liability, the operator has to buy all the agreed parts listed on the final consumable consignment stock from Indo Aerospace Solutions.