Success Story 9

Background
Two business units of a multi-division industrial company wished to validate the advantages of combining their marketing and product development efforts to more aggressively pursue opportunities in the aerospace aftermarket.

Objectives
The objectives of this study were to uncover the following information about the market for aerospace parts:

Unmet needs relative to OEM parts
Current and anticipated future usage of non-OEM replacement parts (PMA parts)
Perceived advantages and disadvantages of PMA parts
Identification of airlines' current vendors of PMA parts
Satisfaction with current PMA parts suppliers
Criteria for selecting parts suppliers
Perceived benefits of a vendor that can serve as a "complete parts and service" supplier
Inclination to use long term agreements or partnerships with parts suppliers

Study Methodology
This study was conducted through in-depth interviews with engineering managers, shop engineers, material planners and purchasing managers at both U.S. and European airlines, as well as with FAA approved repair stations.

Results
The study uncovered initiatives to increase PMA parts usage at a number of major airlines. The report described prioritization of systems where PMA's were being sought and identified the key individuals responsible for the PMA initiatives. The report also detailed the market challenges for PMA suppliers. The client used the study results to develop a program that satisfied airlines' preference for working with suppliers that are able to offer a broad product line. In addition to combining their marketing and product development efforts, the two client business units sought strategic alliances with other PMA suppliers. The alliance participants benefited by saving the time and costs associated with selling to many geographically dispersed entities, and by associating themselves with a large, recognized industrial name. The client benefited by quickly gaining access to a broader product offering without waiting for PMA approvals from the FAA. The airlines benefited by reducing the time and frustration of locating and working with multiple PMA parts suppliers.