AEROSPACE\\\ >> 16


says Goedhart, a d d i ng : “ Cus t o m er


centricity is in their DNA and the ‘hypercare’ of sensitive shipments with 24/7 global support centres by a passionate team opens up a new and exciting market window.”


Certified hubs


Kuehne+Nagel has aerospace- certified hubs all over the world, with key sites in the US, Dubai, Amsterdam, Madrid, UK, Italy and elsewhere which fulfil the requirements of the KN EngineChain, KN SparesChain and KN InteriorChain solutions. Singapore is one key strategic hub with multiple KN- certified aerospace facilities. At the


airport freezone


Kuehne+Nagel has a regional certified aerospace hub (KN SparesChain), a dedicated KN EngineChain facility dealing only with engines and now, for the Singapore Airlines A380 project, a dedicated certified aerospace facility. Kuehne + Nagel was


recently awarded a three-year logistics contract for the A380 refurbishment project with Singapore Airlines for 14 of the giant aircraft. It will provide its customer with end-to-end digital support and manage the material from pick up at suppliers via all modes of transport


into a Singapore-


Issue 4 2019 - Freight Business Journal


certified aerospace logistics hub where the material is received, quality inspected, kitted and handed over


to


hangar maintenance in time and sequence. Goedhart explains: “The KN InteriorChain projects usually require separate storage and preparing the parts and systems to a shipset for one aircraft. That requires specific competences in relation to suppliers, kitting and packaging and project management. Once the shipset is ready and the aircraft is in the hangar, we will make sure the shipset of the new interior is next to it. Another option is for Kuehne + Nagel to take responsibility for the parts of the old interior coming back and dispose of them in an environmentally-friendly manner.” Kuehne+Nagel works


with major vendors and manufacturers of aircraft, engines, systems and parts. Goedhart continues: “We see a consolidation in the industry, which in turn creates the need for intense logistics partnerships. The same applies for MRO companies, whether part of the airline or independent. For production logistics, we support the OEMs’ on-dock dates (delivering the parts on time, not too late but also not


too early) in order


to enable effective aircraft production. We even bring the


goods into the aircraft on the production lines.” For MRO and airlines the


key measurement is AOG - the time aircraft spend on the ground. Goedhart states: “For AOG support we are proud to have Sterling Global Aviation logistics in our portfolio of services. Intense care and continuous communication with the customers here are supporting digitised workflows and automatic updates. The business jet segments of the industry in particular know how crucial this type of support is for their demanding customers and we expect that this will become a new standard in aerospace logistics. In fact we call it the Fourth service level.” Generally, in the sector, there


are routine, critical and AOG requirements, says Goedhart. However the word AOG is often used as a cliché and is not a real logistics definition, Goedhart considers. “Sterling provides the Fourth service level to serve the AOGs in the true meaning of the word – that the aircraft is on the ground and needs to be got flying again as soon as possible.” Goedhart says: “In such cases we say ‘Sterling it’ rather than just ship it.” While logistic processes tend


to be the same in every market segment, it is the dynamics of aerospace that are different. Automotive, for example,


is


Speed and attention to detail vital, says B&H


Aerospace commissions are mostly time critical, high value and require specialist attention, says Stuart Allen, chief executive of sector specialist forwarder, B&H Group. While other major forwarders do handle aerospace, he believes that B&H is the only substantial logistics company to specialise in the area. He explains: “Even relatively


small components can have a value of up to


£500,000 and


the engines that we frequently transport can have a value of £15 million.” The aerospace specific


solutions that B&H offers require staff that are highly trained to handle and manage high value aerospace parts to meet time critical


deadlines; specialist


equipment for loading and handling; and a dedicated IT product designed exclusively for the aerospace market called FirstTrac. He adds that while there are


some similarities with the high- end automotive sector in terms


of the high value of components, it tends to use airfreight less as road and sea freight are oſten more appropriate. For B&H, air Freight


predominates but: “We do use road for larger components or to facilitate time critical


17


key customers, listening, understanding and translation to innovations and digitization will determine the future key players in aerospace. “Logistics overall is still a


very segmented market and in aerospace the key players only have a few percent market share.


This will consolidate


high-volume, low-value while aerospace is


low volume,


high value. Boeing and Airbus together produce about 1,600 aircraft per year while a single automotive site produces thousands of cars a month or even a week. The value of one aircraft engine alone can now be up $30 million – more than even the world’s most exotic supercar.


Certified Aerospace Logistics


Kuehne+Nagel has now refined and developed its offering to the sector into ‘Certified Aerospace Logistics’, and now trains and certifies its own staff. It is meanwhile adding more


team members with a technical background or knowledge. Goedhart says: ”In our current strategic plan we will work together with major technical parties as we have now full focus on certifying the logistics sector to sustainably serve


shipments.” Use of sea freight is very rare, however. Aerospace is also a complex


area with myriad part numbers and a high emphasis on safety and security. B&H people tend to be high end logistics


the aerospace industry. In our view this will go all the way up to updating the relevant sections of the airworthiness regulations with logistics issues.” Some of the regulations for state


instance that engines


need to be stored ‘properly’ and transported ‘properly’. But what is the definition of ‘properly’? “For our KN EngineChain and KN InteriorChain solutions as well as production logistics, we do have certified staff or work together with respected companies that have the necessary licenses.” Kuehne+Nagel sees


aerospace as one of a select strategic segments for long term development. It is a promising as well as challenging arena. Goedhart points out: “One can do 100,000 shipments at top level service but


failing on a


single one will be remembered. We have invested heavily in aerospace and will keep doing so. Market leadership is never a given and there can’t be one day of complacency. Continuous interaction with


and by tuning solutions to the specific needs (like KN InteriorChain for Singapore Airlines and many others) and integrating business models, we will shape the future of logistics aerospace.” Key prerequisites to be part this future are of course


of


to have satisfied customers, which is the best basis for growth and for attracting new business, Goedhart believes. A global presence is also vital. Companies need to have their own offices and their own staff; agents should be used only if there is no alternative. Aerospace needs dedicated professionals who concentrate exclusively on the sector and who can ‘talk the language’. Being financially strong and


sustainable is also vital, given the huge scale of investment by aerospace companies and so is having a strong, global IT backbone. Goedhart sees development of aerospace solutions as a continuous process in close cooperation with customers. Paradoxically though,


says Goedhart: “The more digitisation is realised, the greater the dependence on top passionate people.”


staff who


are trained and mentored to manage and handle aerospace components. B&H works


with airlines,


MRO companies and spare part vendors and stockists. Allen adds: “The sector


is set to grow and we have ambitious plans


to capitalise


on opportunities. This is exemplified by recent investment in staff and resources across the globe – for example new commercial roles in Asia and Oceania, a new 24/7 control tower in Singapore, extended warehouse capacity in Miami, the new generation FirstTrac system (to replace On Track) and new offices in Frankfurt and Prague.”


B&H signs plane parts deal


Aerospace logistics specialist B&H Worldwide has signed a multi- year deal to provide aircraſt and engine components supplier AOG-247 with warehouse and inventory management services at


London Heathrow and


Frankfurt. It includes full inventory management at both locations and access to the B&H FirstTrac online portal.


B&H will initially be responsible


for managing UK-headquartered AOG’s commercial engine inventory from B&H’s Frankfurt warehouse. Chief executive, Stuart Allen,


says: ”As with all component suppliers, AOG-247 need to be very close to their markets and


by utilising space at both our Heathrow and Frankfurt facilities they are well placed to meet any of their own customers’ requirements while at the same time having the scope to expand their activities in the years to come.” AOG-247 managing director,


David Bradley, adds: “Over the past six months we have seen rapid growth in sales and taken advantage of opportunities to acquire multiple material packages and assets. The services offered by B&H will enable us to have a larger footprint in these markets both now and in the future through having our inventories located at these two strategic airports.”


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