Embraer and Horizon Air signed a contract for the Embraer Collaborative Inventory Planning (ECIP), a customized expendables spare parts inventory management program. Embraer says the program is designed to help customers reduce operational costs by optimizing inventory levels. The agreement guarantees support for 41 E175 from Horizon Air fleet operating at the company hub in Portland, Oregon. The contract also includes nine E175s to be delivered, totaling 50 aircraft covered. All the jets are flown by Horizon Air under the Alaska Airlines flag.
“We are very pleased to welcome Horizon Air to the Embraer Collaborative Inventory Planning. ECIP was designed to help our customers gain efficiency and reduce inventory costs in all operations. This is even more important for airlines with large fleets and fast growth like Horizon Air,” said Carlos Naufel, president and CEO, Embraer Services & Support.
Embraer says ECIP offers several advantages to their customers. Most of the inventory investment is done by Embraer, reducing the investment usually carried by airlines. Fixed yearly pricing for each part allows customers to balance costs more precisely at guaranteed performance levels by Embraer Services & Support. The operation is data-driven, with a weekly ordering recommendation based on customer usage and stock level data that is created utilizing software and Embraer Planning experience shared collaboratively.