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Automating Logistics

Steve Drummond

Case Study: How To Deliver A Windshield

We all know how frustrating airports and air transportation can be especially when there are delays involved. It is enough of a hassle to get through the airport and onto your airplane, but no one wants to see their airplane be delayed or grounded once they are on it. On average, it costs $150,000 every hour an airplane is grounded. This makes it imperative for airlines to get the parts needed for repairs as soon as humanly possible.

Breaking Down An AOG

If you want to make money with an airplane, you have to keep the airplane in the air. Every time an airplane is grounded it is extremely costly for the owner or airline.

AOG (Air is a term used in the Aerospace industry when a mechanical problem in an aircraft makes the plane unsafe for flying. According to a recent study, smaller airlines dealing with AOG situations can lose north of $20,000 a day, while larger airlines in Western countries with AOG’s often can cost up to $150,000 an hour.

The current cost for a new Boeing 777 fluctuates from $261.5 Million to $320.2 Million depending on the model that you choose. The average dry lease (only plane without crew) cost for the Boeing 787-9 ranges between $1.1 Million and $1.25 Million a month or over $36,000 a day. This does not take into account the cost of maintenance/parts or the revenue airlines are missing out on from customers.

As you can see, the Aerospace industry is a high stakes game and getting whatever part that is keeping the plane on the ground to the air plane as fast as possible is of the highest importance.

Automating How Logistics Works in 2017

In today’s ever-changing world, time is money. This can be seen in your daily life and the business world. We’re moving to a more automated society, whether it be self-driving cars, self-checkout grocery shopping, or ordering from a computer screen at McDonalds. Examples of automation are becoming more and more prevalent. By implementing the latest technology and software, people are saving significant amounts of time, and are able to make important decisions quicker than ever before. This decreases chances for error, and in the end saves money.

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