Thales has been awarded by the French Ministry of Defense a 10-year service contract, worth €977 million ($1.04 billion), for the creation of an aeronautical consumables supply chain.
The Paris-based company will devise and put in place a new supply chain organization covering the procurement, storage and transportation of 200,000 item references, such as tires, electronic components, cables and seals. The service is scheduled to be fully operational in September.
As a first tranche in the framework contract, Thales has received a €70 million firm order for this year. The amounts include the cost of the parts themselves.
To build an optimized supply chain for the French forces, Thales will use its expertise in big data analysis, airworthiness and obsolescence management. Recurring items will be dispatched to 47 sites within seven days.
Thales has to guarantee availability of the aeronautical parts stored in the state-owned warehouses.
"The logistics IT system based on intelligent algorithms, and our partnership with logistics provider Kuehne+Nagel, guarantee perfect stock management based on real consumption,” says Marc Darmon, Thales' Executive Vice- President, Secure Communication and Information Systems.