PTC > Case Studies > The Embraer Program: EMBRAER FLIES HIGH WITH NEW SERVICE PARTS STRATEGY

The Embraer Program: EMBRAER FLIES HIGH WITH NEW SERVICE PARTS STRATEGY

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Company Size
1,000+
Region
  • America
Country
  • Brazil
Product
  • PTC Service Parts Management
Tech Stack
  • ERP
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Customer Satisfaction
  • Productivity Improvements
Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
  • Aerospace
Applicable Functions
  • Logistics & Transportation
  • Procurement
Use Cases
  • Inventory Management
  • Supply Chain Visibility
Services
  • System Integration
About The Customer
Empresa Brasileira de Aeronáutica (Embraer) is a Brazilian company that has been involved in designing, developing, manufacturing, selling, and supporting executive jets, commercial jets (with up to 120 seats), and defense aircraft for over 40 years. The company has produced more than 5,000 aircraft that are operating in 92 countries worldwide. As its customer base has grown, the company has experienced a dramatic increase in the demand for aftermarket parts services. Embraer’s logistics team concluded that its ERP and legacy systems were not able to meet the needs of its increasingly complex services organization.
The Challenge
Embraer, a company involved in designing, developing, manufacturing, selling, and supporting executive jets, commercial jets, and defense aircraft, faced a significant increase in demand for aftermarket parts services as its customer base grew. The company's existing ERP and legacy systems were unable to meet the needs of its increasingly complex services organization. The existing parts systems made it difficult to consolidate inventory data and calculate stock requirements, leading to insufficient service levels, low inventory turns, and high levels of obsolete stock. Embraer needed a more sophisticated parts planning process to manage these challenges.
The Solution
Embraer selected the PTC Service Parts Management solution to replace its existing parts software after reviewing available options and completing a formal RFP process. The PTC solution has allowed Embraer to use a single strategy to manage complex interchangeability relationships, rebalance inventory across a global network, create location and part types with associated attributes, forecast different streams of demand, and automate its inventory replenishment process. The new service parts capabilities have driven operational excellence, allowing the spare parts planning team to create accurate parts-consumption forecasts. The implementation of the PTC solution has helped transform Embraer’s services culture, enabling planning staff to forecast supplier requirements and perform collaborative planning with the company’s customers.
Operational Impact
  • PTC Service Parts Management has allowed the spare parts planning team to create accurate parts-consumption forecasts.
  • The executive aviation group has been able to achieve impressive growth in business volume without an increase in staff headcount.
  • Improved parts planning information has enabled Embraer to avoid unnecessary purchases, increase inventory turns, lower costs, and improve visibility across its service parts network.
  • The logistics staff has been able to achieve its challenging targets for off the shelf parts availability.
  • PTC Service Parts Management has helped transform Embraer’s services culture.
Quantitative Benefit
  • Reduced inventory for commercial aviation by 12.5 percent
  • Improved inventory turns by 35 percent
  • Service quality scores for key customer groups have improved dramatically

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