Embraer and Scoot, the low-cost subsidiary of Singapore Airlines, have entered into a contract for the Embraer Collaborative Inventory Planning (ECIP) program, a customised expendable spare parts inventory management program designed to help customers optimise inventory levels and reduce operational costs.
The ECIP agreement, combined with the Pool Program that Scoot has previously signed, will provide comprehensive support for Scoot’s incoming fleet of nine E190-E2 jets. Scoot will be the first ECIP customer in the Asia-Pacific region.
Ng Chee Keong, Chief Operating Officer of Scoot, said that the strategic arrangement with Embraer would help ensure operational efficiency as the airline anticipates the arrival of its first Embraer jet in the near future.
Embraer’s services and support in the Asia-Pacific region are centered in Singapore, where 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 centralised location within the region.
ECIP offers several advantages to customers, including minimising customer disbursement as most of the inventory investment is done by Embraer, reducing the investment usually carried out by airlines. It also 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 recommendations based on customer parts consumption. Advanced software, supported by dedicated stock to serve ECIP Customers in the region and Embraer Planning experience, are key to the efficiency of the solution. Additionally, ECIP customers can rely on Embraer’s material services management expertise and a global logistics network with best-in-class performance.
Carlos Naufel, President and CEO of Embraer Services & Support, said that Embraer’s wide suite of services is built on understanding and anticipating the needs of its airline customers in a dynamic environment. He thanked Scoot for their trust in Embraer as they work towards the operations of their fleet of E190-E2.