Partnering flying logistics Lutz Quietmeyer – Airbus Commercial Aircrafts

November 2019

Agenda – who to make it fly

• The aeronautics industry – a few insights and key figures

• Logistics and general cargo transport

−Service requirements for flying parts

− Industry context

• What makes a good partnership in logistics

• What comes next

November 2019 Partnering flying logistics - Lutz Quietmeyer2

Novemeber 2019 Partnering flying logistics - Lutz Quietmeyer3

19,467Aircraft sold

60Produced monthly

25,000+Daily flights

12,334Delivered

An Airbus takes off

or lands every 1.4 seconds.

Data as of 30 september

Logistics and general cargo transportation at Airbus

• Strong European footprint with

specialized sites per aircraft

subassemblies

• Workshare requires logistics flows

adaptation

• Specificities

− > 200 000 references per aircraft

− Very high customization

− Manual and highly skilled labour

dominates assembly

− Performance (weight, aerodynamics)

dominate design

− All transport general cargo and logistics

activities outsourced to third party

logistics providers

November 2019 Partnering flying logistics - Lutz Quietmeyer4

November 2019 Partnering flying logistics - Lutz Quimeyer5

Safety first

• Strong safety and regulations

• All service providers are approved by Airbus and qualified for the work performed

• Logistics service providers work under Airbus Production Organization Approval given

by European Aviation Safety Agency (EASA).

• Quality processes give no flexibility, logistic should adopt to the Airbus way of working

and be at any time compliant to EASA part 21-G regulations

• Key element is good receipt with consequent checks from certified suppliers, approved

and qualified.

• Quality first to secure safety

November 2019 Partnering flying logistics - Lutz Quimeyer6

Rough Facts & Figures along the supply chain

Transport General cargo

240 000 transport requests

per year are answered by

120 trailers / day

Eq 2 A300 freighters / day

Eq 10 sea containers / day

50 Urgent shipments /day

Mix of ex-works / FCA /

DAP incoterms

Business model: 4PL with

central control tower

managing 25 strategic

carriers

Warehousing

15 major hubs and around

125 logistics stores close to

production facilities across

Europe

Overall >520 000 m2 surface

Inbound

5 millions movements

per year (good receipts)

VMI as part of supply

strategy

Outbound

33 millions movements

per year

Picking and kitting ready

to use

at production station

On-site plant

Internal transport and on-

site buffer management

Point of use delivery

Deployment of pull

distribution

Heavy handling of

sections (movements)

Business model: 3PL+

Suppliers

Assembly

Line

Warehouse Market

Place

Inbound

KIT KIT

Outbound

0.5Mio new tracking event lines per day = 110 Mio tracking events per year

managed by Flow Metrics cross SAP & External WM systems covering Inbound, Warehousing, Outbound

flows.

Hub strategy as Airbus initiative

November 2019 Partnering flying logistics - Lutz Quimeyer7

Partnering flying logistics - Key elements of success

Balances relationship:

• Logistics service provider

− Efficiently manages workforce through strong local footprint

− Generates service improvements and productivity within a

given frame of process / deliverables

− Analyses and engages common improvement initiatives to

generate benefits for both, levering (or not) on technical

expertise and best practices with other customers

• Airbus takes ownership on key logistics drivers

− Building footprint (show examples of Airlogs, Magauto,

SNZ, Hub Spain, Dradenau)

− Data availability and performance, including IS/IT (EWM

roll-out, FM)

− Process review and enhancement

− Internal improvements of the end to end chain

➔ Great opportunities ahead

8

Strong and resilient

passenger traffic

growth.

Airbus GMF 2019

Nearly 39,210new aircraft required by 2037.

A market value of

$4.9 trillionby 2037.

Passenger traffic growth

by 2037:

4.3% p.a.

We are in a growth industry.

• Projects with more logistics

• Extra long range version of SA family

• Insourcing of nacelle activity

• Transport scope extension (incoterm changes,

A220 scope)

Thank you