Procurement of Aircraft spares.

# Sources of Aircraft Components:

There are three basis sources from where operators can purchase aircraft Spares/
parts/ chemicals and tools.

a) Original Equipment Manufacturers (OEM)

b) Authorized distributors/ vendors of OEM

c) Suppliers other than OEM

Original Equipment Manufacturers (OEM) shall be selected directly from

IPC/CMM/ ITEM (illustrated tools and equipment manuals) and Service Bulletins
(SB). Authorized distributors / vendors of OEM are also treated as authentic
sources like OEM. Such authorization may be permitted through OEM’s website
or a certificate issued by OEM. Suppliers other than OEM are another source of
aircraft spares, parts, and components. Generally, CAA allows operators to
purchase aircraft spares only from approved suppliers. To be a supplier of aircraft
spares, a company must have proper certification (ASA, EASA, FAA, CAA etc. )
and approval.

a) Original Equipment Manufacturers (OEM): OEMs are specialized in

manufacturing specific parts or systems that are then integrated into a final
product. Generally, aircraft manufacturers assemble aircraft parts together to
build an aircraft, but most of them are manufactured by different companies.
Aircraft OEMs have long experience in research and development. They
also must have approval and certification to meet regulatory compliance. In
addition to appropriate facilities, OEMs must have a strong quality control
system. Safety is the number one priority for the manufacturing of aircraft
parts. GE, Collins, Safran, Honeywell, Thales, etc. are the magnificent
OEMs in the aviation world.

b) Authorized distributors and vendors of OEMs: Authorized distributors are

those companies that have the authorization to sell the products of OEMs.
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 Some manufacturers do not sell their products directly to the manufacturers
but rather authorize some distributors to sell their products. The main
purpose of this association is to use the supply chain of the distributors. The
distributors may be chosen worldwide or regionally. If an OEM has a single
distributor, it is called the sole authorized distributor. In the aviation world,
Satair and Aviall are the largest distributors of aircraft spares. Proponent,
AAR etc. are also giant distributors.

1. Suppliers other than OEM: Suppliers other than OEM are another source of
aircraft spare parts and components. The suppliers are the trading companies
that purchase aircraft spares from OEMs, distributors, and airlines and sell
them to the airlines. However, suppliers must have the certification to trade
the aircraft spares. ASA-100 or AC00-56b is the certificate that the suppliers
commonly hold to sell the aircraft spares.

# Conditions of aircraft spares:

The condition of the aircraft spares is very critical for aviation safety and
reliability. Aircraft spares, which include components and consumables used in
aircraft maintenance and repair, must meet stringent quality and safety standards.
These parts can generally be categorized into the following conditions:

New (NE): New aircraft spares are brand-new, unused, and unsold to any operator.
Some new items are also called factory new ( FN ) when they are the last batch
produced by the company.

New Surplus (NS): New surplus are those aircraft spares that were purchased by
any end user for use but found surplus due to aircraft phase-out of excess
inventory.

Overhauled (OH): Overhauled spares have been disassembled, inspected, repaired,

and assembled to a like-new condition.

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Repaired (RP): Repaired items are those components that have been repaired for a
specific reason.

Tested (TS): If any serviceable item goes through testing for the purpose of
meeting a regulatory requirement, it is called tested.

Serviceable (SV): Removed from an active aircraft in serviceable condition and

preserved for next use.

Modified (mod): components or parts that have undergone alteration or changes to

meet specific requirements. These modifications can be made for various reasons,
like performance enhancement, compatibility, upgrade, or customization.

Parts Manufacturer Approval (PMA): PMA parts are produced by companies other
than the OEM. These companies must adhere to strict quality and safety standards.
They also must have approval from the authority from which the OEM got
manufacturing approval. PMA parts are often seen as cost-effective alternatives.

# Selection of aircraft components for ordering:

Selecting aircraft components for ordering is a crucial decision for ASCM that
requires careful consideration to ensure requirements, safety, reliability, and
compliance with aviation regulations. The following are the key points for the
selection of aircraft spares:

i) Maintenance requirement ( Part number, name, quantity, color code etc. )

ii) Certification
iii) Lead time ( Shipping time )
iv) Price
v) Condition
vi) Location
vii) Warranty etc.

# Process for ordering of aircraft spares:

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The ordering of aircraft spares depends on the aircraft's maintenance requirements.
Generally, the ordering of aircraft spares is followed by the planning of aircraft
spares.

Before ordering, quotations are collected from the OEM, vendor, or supplier and
evaluated based on selection criteria and company policy. A quotation may be
collected through e-mail or FAX. In modern communication systems, most OEMs
maintain their own web portal for online price collection and ordering. After
evaluation of the quotation, a purchase order (PO) is submitted to the suitable
supplier.

The purchase order must specify full specifications. Description, the rate, and the
value correctly as per quotations or invoices approved by the indenting as well as
the approving authority, with reference to the supplier quotations to be endorsed on
the purchase order.

# Invoices and payment process:

An invoice is a commercial document issued by a seller to the buyer indicating the

details of a sale transaction. An invoice contains the following information:

 Company Name and Logo

 Invoice number and date
 Seller’s information
 Buyer’s information
 Description of the goods or services
 Amount (unit and total price)
 Payment terms, payment instructions, and mode of payment
 Terms and conditions

The mode of payment against any purchase order depends on the relationship or
agreement between seller and buyer. It may be a credit, letter of credit, or advance.

# Warranty of aircraft spares:

Warranties for aircraft spares provide assurances regarding the quality and
performance of the parts. Aircraft spares are critical components that need to meet

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high standards of safety and reliability. Here are some key aspects of warranties for
aircraft spares:

Warranty Duration: The duration of a warranty can vary, but it's typically specified
in terms of months or hours of operation, whichever comes first. Generally, new or
overhauled components come with a one-year warranty. The warranty on a
repaired item is lower, and most of the time it comes with 6 months.

Warranty Coverage: Warranties generally cover defects in materials and

workmanship. This means that if the spare part is found to have manufacturing
defects or if it fails prematurely due to such defects, the manufacturer or supplier
will repair or replace the part. Warranties may have exclusions, meaning they do
not cover certain types of damage or wear and tear that occur during normal use.
Exclusions should be clearly stated in the warranty terms.

Warranty Claims: If a problem arises with the spare part during the warranty
period, the aircraft operator or maintenance provider typically needs to submit a
warranty claim to the manufacturer or supplier. This claim should include
documentation of the issue and compliance with warranty terms.

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