DHL Supply Chain seems to have caught a big fish: The signing of a Letter of Intent with Etihad Airways Engineering aimed to enhance the Arabian carrier’s MRO business is a significant step, opening up new opportunities.
According to the pact, Etihad Airways Engineering will outsource its entire internal logistics functions, handing it over to DHL Supply Chain. This includes key tasks like running stores, manage
local transport movements and oversee associated supply chain planning at the EY Engineering hub located in airside areas of Abu Dhabi Airport.
The technical unit of Etihad Airways is the largest commercial aircraft maintenance, repair and overhaul (MRO) services provider in the Middle East.
Serving customers more efficiently
Jeff Wilkinson, Chief Executive Officer of Etihad Airways Engineering, said: "We see this agreement as a win-win opportunity not just for Etihad Airways Engineering and DHL Supply Chain, but also for our customers around the world who will be served more efficiently and cost effectively as an outcome of the partnership."
David Christmas, CEO DHL Supply Chain Middle East, Russia & Turkey, spoke of a “significant business win for DHL in the United Arab Emirates.” The manager went on to say: “We have a long-standing relationship with Etihad Airways Engineering, which will continue to maintain our aircraft. Our new partnership will build on and broaden this relationship, synergizing the unique strengths of each partner to maximize efficiency and profitability.”
Comprehensive range of tasks
By introducing logistics planning and control, DHL brings robust processes to Etihad Airways Engineering's supply chain to which aligned storage capacity planning and inventory policies compose a major element.
Response lead times will be reduced through efficient pick processes and performance indicators for every logistics and warehousing function, announces DHL. Apart from process optimization, the Deutsche Post daughter will also introduce several changes in the layout of Etihad's current warehouse, improving the space already available and setting up an external off-airport warehouse able to accommodate necessary inventory and part storage.
The supply chain performance and solution has a major impact on the effectiveness of any carrier’s MRO function.