BOEING TO MANAGE PARTS LOGISTICS FOR BA

   Boeing Co. has signed a deal to manage British Airways’ supply chain for
expendable airframe parts, as the launch customer of a new Boeing logistics
service called Global Airline Inventory Network.
   Boeing plans to market the logistics services to all of its airline
customers. According to the service plan, Boeing will provide purchasing,
inventory management and logistics management for airline parts that are
discarded after use, such as fasteners, brackets, floor panels and airplane
skins. The airplane maker will use its network of seven regional
distribution centers to create a "single parts-distribution channel" for
all suppliers and airlines.
   Boeing said the plan is designed to reduce the inefficient duplication
of distribution channels and unnecessary inventory levels in the airline
industry.
   The airline industry worldwide consumes $7 billion a year in airframe
spare parts to support Boeing planes, and studies indicate that for every
$1 of spare parts inventory, airlines spend an additional 35 cents on
inventory and logistics costs, Boeing said.