AAR has signed a five-year contract to become the sole supplier of approximately 25,000 consumable and expendable line-item parts for a major commercial airline customer. The contract is valued at approximately $42 million in annual revenue.
AAR will act as an aggregator, procuring and managing the parts and providing them to the customer’s main warehouse facility as required. In doing so, AAR will take the place of more than 150 suppliers. AAR will provide additional value through guaranteed fill rates that will be achieved by streamlining supply chain processes that include material planning, inventory control and receiving inspections.