Embraer and Scoot, the low-cost subsidiary of Singapore Airlines, have signed a contract for the Embraer Collaborative Inventory Planning (ECIP), a tailored expendable spare parts inventory management program designed to assist customers reduce operational costs by optimizing inventory levels. The ECIP agreement, coupled with the Pool Program that Scoot has earlier signed for, will provide comprehensive support for Scoot’s incoming fleet of nine E190-E2 jets. The airline will be the first ECIP customer in the Asia-Pacific region.
Mr Ng Chee Keong, Chief Operating Officer, Scoot, said, “Our continued partnership with Embraer is testament of our commitment to deliver optimal performance with the new E190-E2 fleet. As we anticipate the arrival of our first Embraer jet in the near future, this strategic arrangement will help ensure operational efficiency.”
“Embraer’s wide suite of services is built on understanding and anticipating the needs of our airline customers in a very dynamic environment,” said Carlos Naufel, President and CEO, Embraer Services & Support. “We thank Scoot for their trust in us as we work towards the operations of their fleet of E190-E2.”
Singapore is the center for Embraer’s services and support Asia Pacific operations. In addition to personnel based in Singapore, the Company has a Regional Distribution Centre within Changi Airport’s free trade zone. The Regional Distribution Centre provides round-the-clock spare-parts provision and support for Embraer’s customers from a centralized location within the region.
ECIP offers multiple advantages to customers. It includes the minimization of customer disbursement as most of the inventory investment is done by Embraer, reducing substantially the investment usually carried out by airlines. Also, it covers fixed yearly pricing for the items covered on the ECIP scope, allowing customers to have cashflow predictability under agreed levels of service. The operation is data-driven, with weekly ordering recommendation based on customer parts consumption. Advanced software, supported by dedicated stock to serve ECIP Customers in region and Embraer Planning experience are key to the efficiency of the solution. Additionally, ECIP customers count on Embraer’s material services management expertise and a global logistics network with best-in-class performance.
