Boeing provides supply chain service for Japanese airline
Boeing Co. said it plans to reduce inventory costs for Japan Transocean Air, a subsidiary of Japan Airlines that provides domestic service to Okinawa, under a logistics outsourcing arrangement announced Friday.
The airline will only pay for parts as it orders them from nearby Boeing and other supply houses. Boeing will be responsible for purchasing parts, inventory management and logistics. The just-in-time parts delivery process is designed to reduce inventory carrying costs and spare-parts obsolescence.
The program builds on an existing parts management program Boeing has with Japan Airlines.