A CLOSER LOOK
Being a helicopter business owner my-
self, and a student of the art of business, I immediately see that PAG has mastered the tool of leverage. Their business lever- ages people, technical skills, industry knowledge, inventory, geographic loca- tion, and capital strength in order to build a company that is nine operating units deep, with networks that span the globe.
INVENTORY STRATEGY Inventory and shipping are critical to
being a global supply chain leader. PHP supports 75 OEM product lines (which in- cludes fixed-wing aircraft and nearly every make of helicopter) and has over 4,500 cus- tomers in over 60 countries. Whether their clients fly Robinson, Bell, Sikorsky, Airbus, MD, or AgustaWestland, they must keep an adequate inventory of parts to handle planned maintenance requests, and be prepared for AOG support as well. Utilizing 185,000 sq. ft. of facilities, PHP consistently maintains a 75,000 line-item capability with an inventory value of $31 million. From gearboxes to gen- erators, from boost pumps to glass panel dis- plays—from tip to tail—there is hardly a part that they do not have and cannot get to an op- erator quickly.
LOCATION STRATEGY A proverbial key to success for restaurants,
real estate, and many businesses is location, lo- cation, location. However, as it relates to the ISMRO business of PHP, I did not at first con- sider the locations of its facilities as being re- ally important. Boy, was I wrong! There are several reasons why they located each arm of PHP where they did, but two are most impor- tant.
The first important reason is pretty obvi-
ous; go where the helicopters are located. Half the world’s helicopters are located in North America, so it’s no surprise that they have two locations in the United States alone. The company has focused like a laser on specific sectors of the industry, as evi- denced by the placement of one of its facilities in Louisiana, the heart of the offshore oil and gas support industry. Addition- ally, there are PHP locations in Canada, Australia, and most re- cently, Singapore. The second important reason as to where PHP establishes lo- cations is logistics. PHP shrewdly leverages every logistical
30 March 2014
benefit imaginable to save time, contain costs, and promote ef- ficiency. The best example of this can be seen at its Atlanta MRO facility and inventory warehouse. Atlanta is home to one of the busiest and largest international airports (KATL) in the world. Not only is the facility near KATL, but also it’s literally hundreds of feet from the airport boundary. So exactly how does carefully chosen locations help PHP’s customers? Think speed. With thousands of flights out of KATL
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