Dive Brief:
- FedEx plans to expand its use of an inventory tracking platform to further reduce its aircraft fleet's downtime and costs, according to a company executive.
- The logistics giant is using software provider Mojix’s platform in its U.S.-based warehouses to keep tabs on aircraft components at the item level, Bob Minford, VP of airline technology at FedEx, told Supply Chain Dive in an interview. This allows FedEx to more quickly locate and deliver parts necessary for repairs.
- After years of working together, FedEx is now aiming for an international rollout of its use of Mojix, Minford said. “We got to get it everywhere in the world, just like we do with every one of our systems.”
Dive Insight:
FedEx's increasing use of the Mojix platform coincides with the company's efforts to make its Express unit’s global airline operations more agile and flexible, helping it save costs over the long term.
There's roughly 8 million aircraft parts for FedEx to keep track of in its inventory worldwide, Minford said. With item-level visibility, the company can quickly locate and deliver the necessary components to a facility when one of its airplanes needs a repair.
"There are often times that we have 15 minutes to pull that part and get it to the mechanic on the ramp," Minford said. " ... We need all the efficiencies and reliability to deliver the right part to the right mechanic at the right time."
Faster fixes for aircraft means more time they can spend delivering goods, helping FedEx maximize the value of these expensive assets.
"It's all about keeping the airplane up in the air, back and forth, moving cargo," Mojix CEO Chris Cassidy said in an interview.
The Mojix platform works with RFID technology to keep track of FedEx's valuable aircraft parts. An RFID tag is generated for each part brought into the company's supply chain, with relevant data being sent to the Mojix platform.
The platform updates in real time with the item's location and process stage, and offers alerts on improperly stocked or non-stocked parts, in addition to parts not delivered in the required timeframe.
"We're physically counting the known devices that they're actually putting labels on to then track with the RFID and serialization," Cassidy said.
Tighter inventory control by leveraging RFID technology is helping FedEx minimize costs. The company has saved more than $7.5 million in found inventory since it began tracking RFID cost savings in December 2018, according to Minford.
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