Consignment Program
The Consignment Program is designed to recover maximum value from the liquidation of inventories of aircraft parts. Substantially more value can be recovered over time by selling individual parts than by selling entire inventories at a highly discounted price as a lot. For a complete discussion of the economics of a liquidation please contact George Bunting.
A successful program requires good customer service, competitive pricing, well documented parts, and low operating costs so that inventories can be warehoused over time. The cornerstone of our program is our subsurface Aircraft Parts Liquidation Center which provides virtually unlimited inexpensive, secure, weatherproof warehousing. At our location there are over 5 million square feet utilized as distribution centers by Fortune 500 companies and by U.S. Government agencies for document storage. It has five miles of underground roads, rail access, and can also provide trade zone status.
The essential provisions of the Consignment Program are as follows:
- Marketing & Advertising: Aero Express Parts (AEP) will be responsible for marketing and advertising your aircraft parts inventory. Our staff is experienced and knowledgeable in selling aircraft parts worldwide.
- Storage: At its expense Aero Express Parts warehouses the inventory at our Kansas City area high security, weatherproof, underground facility. All Consignment material is segregated with ownership identified both physically and on computer records.
- Inspection: Consignor may inspect inventory and premises at any time after giving appropriate notice.
- Reporting: Aero Express Parts will provide periodic reports on status and sales of consigned materials.
- Insurance: Property insurance can be provided either by the Consignor or by Aero Express Parts with the Consignor named as a "loss payee" for material while in storage. Responsibility for in-transit material will be defined by the transportation carrier's Bill of Lading.
- Sale Price of Material: Consignor to designate if any minimum pricing required. Any sales below minimum must be approved in writing by Consignor. Otherwise Aero Express Parts will exercise its best judgement to obtain market pricing.
- Documentation: Consignor to provide documentation for traceability with the material. All material subject to inspection and acceptance of AEP Quality Assurance.
- Recall: Consignor may recall any items for a small administrative fee plus packing and shipping costs.
- Exclusivity: In return for marketing the material, Consignor gives the sales agent (AEP) an exclusive consignment which means a commission is paid to sales agent even if the Consignor finds a buyer.
- Commission: Negotiable depending upon the responsibility of Aero Express Parts.
- Rotable Repair Costs: Repairs may be necessary on rotable parts to increase their marketability. Repairs will be deducted at cost from the commissionable base. Aero Express Parts will be responsible for arranging all repairs. Any scrap or BER items will be handled per instructions from the Consignor.
If you have any questions, ask Don Lueke who has over 35 years experience working in aviation materials management with airlines.
