contents 01 03 12 24 Change is in the air Airframe Division: A leader Together we are strong in innovation 25 04 16 Volvo Aero: Best Partner Our Core Values Customer Solutions: An idea whose time has come 06 20 Best Partner: Volvo worldwide locations Together, we accomplish more and operations 08 22 Engine Division: More essential A history of increased services than ever ACRONYMS USED IN THIS BROCHURE: OEM Original Equipment Manufacturer MRO Maintenance, Repair and Overhaul APU Auxiliary Power Unit SAP Systems Applications and Products C H A NGE I S IN TH E AIR One of the few constants within the aviation industry is that it is cyclical, often dramatically so, as business 02 03 ebbs and flows in response to internal and external developments. Within this context of continuous change, Volvo Aero Services stands out for stability and reliability as a global resource for unique, tailor-made customer services. Although our Company began as an aftermarket parts supplier, over the years our capabilities have expanded in all directions. Today, in addition to parts, Volvo Aero Services supplies integrated customer solutions that involve offerings not traditionally associated with aviation, such as supply chain management, including services like logistics, warehousing, repair management, transportation and financing. As a vital element within the larger Volvo Group, we have the ability to leverage Volvo’s considerable assets, while still retaining the agility of a smaller, entrepreneurial enterprise. The benefits to our customers are substantial, being that Volvo Aero Services has the financial backing, worldwide infrastructure, and innovative spirit to quickly respond with comprehensive solutions tailored to their exact needs. + transportation The resulting partnerships encourage robust growth within both companies by combining resources and maximizing potential. Volvo Aero Services considers long-term partnerships to be the ideal business model + supply programs of the future, and we are passionately pursuing them. + warehousing One of the keys to our success is that the physical infrastructure is in place through The Volvo Group + repair management worldwide. Capitalizing on that global presence, Volvo Aero Services can easily use existing facilities and systems to quickly respond to requests anywhere in the world. + financing We also have an edge through SAP, a technical support system utilized throughout the Company. This + exchanges cutting-edge software application streamlines our internal processes and seamlessly integrates with our customers’ systems, providing real-time communication and greater efficiencies. + distribution + logistics The response to our expanded services and commitment to quality has been very positive. The future looks even brighter, as we expand to meet our customers’ needs on a deeper, more personalized level. As our growth fuels their success, the opportunities will increase all the more. Claes Malmros President & CEO Volvo Aero Services Our core values The Volvo Group views its corporate culture as a unique asset. By applying and 04 05 strengthening the expertise and culture we have built up over the years, we can achieve our vision. Quality, safety and environmental care are the values that form the Volvo Group’s common base and are important components of our corporate culture. The values have a long tradition and permeate our organization, our products and our way of working. Our goal is to maintain a leading position in these areas. Quality Quality is an expression of our goal to offer reliable products and services. In all aspects of our operations, from product development and distribution, to delivery and customer support, the focus will continue to be on customers’ needs and expectations. Our goal is to exceed their expectations. With a customer focus based on everyone’s commitment and participation, combined with a process culture, our aim is to be number one in customer satisfaction. This is based on a culture in which all employees are responsive and aware of what must be accomplished to be the best business partner. Safety We have had a leading position in issues regarding safety for a long time; our goal is to maintain this position. Our employees are highly aware of safety issues and focusing on them is an integral part of their work. Environmental Care We believe that it is self-evident that our products and our operations shall have the lowest possible adverse impact on the environment. Our goal is that the Volvo Group shall be ranked as a leader in environmental care. To achieve this goal, we strive for a holistic view, continuous improvement, technical development and efficient resource utilization. Best partner: together, we accomplish more Long-term partnerships with Volvo Parts, Volvo Financial Services and 06 07 Volvo Logistics are essential to Volvo Aero Services. Partnerships are two- way streets. The more integrated the partnership, the better both companies function because their needs are understood on a deeper, more meaningful level. By working together, companies become more than the sum of their parts. They share a goal and combine complementary resources to reach it. Our first and largest partnership is with The Boeing Company. In 1999, our Company was granted the exclusive right to redistribute Boeing’s surplus inventory. Over time, our companies have become further integrated. Today, Volvo Aero Services and Boeing work side by side, and collaborate openly to achieve mutual goals. Our informational systems are integrated to provide real-time communication for greater efficiencies. It has become a true partnership. Always acting as “Best Partner,” our Company creates a competitive advantage for our partners, enabling them to focus on their core business. In turn, this synergy enables Volvo Aero Services to become more efficient and streamlined. The aviation industry is a huge network of companies, and our strategy for the future is to form key, long-term partnerships. As a result, we can provide our customers with effective solutions that address their individual needs. engi ne division: more essential than ever When Volvo Aero Services was founded nearly 20 years ago, the Engine 08 09 Division was its core, primarily selling a selection of aftermarket parts. Over time, it expanded and restructured in response to our customers’ ever-changing needs. Today, through alliances with our principal partners, the Engine Division provides a multitude of vital services, including the sale of engines and APU’s, new and used inventory, consignment, leasing and repair management. The foundation of the Division is procurement, whether of entire engines, or parts. While our strategy for the future calls for the acquisition of newer- generation engines, we still maintain an ample inventory of all commonly used engines and APU types. Acquisitions are sought out for our key customers, in response to knowing their specific needs through close contact. Volvo Aero Services has distinct advantages in acquiring assets. The trusted Volvo name is known worldwide, which presents opportunities that may not be accessible to others. Although large, our Company has the rare ability to respond quickly to secure an asset in hours. We also have the financial strength to make a purchase that may require a multi-million dollar investment. J e ff P las S enio r Vi ce P resid ent E ng ine D iv is io n Tom m y H u ghes V ice P resid ent E ng ine D iv is io n, Market ing Leasing engines and beyond Leasing engines provides another significant supply chain for materials. When our Engine Division acquires an asset for lease purposes, it can be leased for long-term or short-term. At times, an MRO may require an engine short-term for one of its customers to replace theirs while it’s being repaired. At lease term, the engine might be overhauled, leased again or disassembled for spare parts. We treat consigned assets as our own and are determined to maximize all 10 opportunities that arise throughout the lifecycle of an engine. We are there to 11 help our customers through capability and fleet changes as this provides Volvo with supply opportunities. Our expertise also includes management of engine repairs, for which we supply technical support and a work scope that details the repair and costs. Success stems from relationships We offer both long-term and short-term supply programs that can include onsite representation. Our breadth of complementary engine services helps build long- term relationships. Supporting our customers allows them to concentrate on their core business. They become more successful through our efforts on their behalf. Similarly, long-standing relationships give our Company a decided edge. Many times, companies offer assets to us to sell, knowing from past experience that they will be treated fairly and with integrity. They also understand the value of the Volvo brand and our proven capabilities in marketing those assets globally. We have earned a reputation for being a highly skilled, transparent partner that C h r i s Ra u c h only promises what we can deliver. That has been a constant since our Engine V i ce P re s i d e n t Division was formed, and it will remain the cornerstone of our future. Engine Division, S a l e s & P ro d u c t s J i m G re e n V i ce P re s i d e n t Engine Division, P u rc h a s i n g & Asset Management airframe division: a leader in innovation Since the creation of our Airframe Division in 1990, it has grown to be the 12 13 leader in the worldwide distribution and redistribution of airframe accessories and components. Currently, our inventory is comprised of a vast array of notable components from most major OEMs. The Airframe Division’s original business model was that of a trading company. That business model changed dramatically in 1999, when Volvo Aero Services signed an agreement with The Boeing Company to exclusively distribute its new surplus parts, and began the transition to a services-based provider. Supplying parts around the clock The Airframe Division has now evolved into a large-scale distributor of new, surplus and overhauled parts that we manage on behalf of our partners, which include well-known names such as Boeing, Honeywell, American Airlines, Bombardier, Kuwait Airways and British Airways. To better assist our customers, we have expanded our services, providing support 24 hours a day. Our worldwide redistribution network allows us to sell surplus or excess inventory for companies that no longer need them, and at the same time provide Kev i n P. H a r t n e y them with material required to meet their current needs. Additionally, parts E x e c u t i ve V i ce P re sident that need repair or modification can be identified and channeled to our repair A i r f ra m e D i v i s i o n partners to add value and create a marketable asset. Instead of the traditional method of selling parts in one bulk lot, we prefer to manage and sell them over time, in order to increase our partners’ revenue and return. Change brings great benefits The Airframe Division’s transition from being a parts trader to a service-oriented partner set a precedent within Volvo Aero Services that has become the prototype for our other divisions, spurring innovation and change throughout our Company. Customers can select services such as financing, provisioning, and inventory repair management on an as-needed basis. For instance, start-up airlines often approach us for financing and large-scale provisioning, while legacy airlines may 14 prefer parts supply and repair management services to help reduce costs. Our 15 services are particularly beneficial when assisting an Airline that is transitioning from one aircraft platform to another. Our distribution, redistribution and new provisioning services are an ideal solution, which can be provided in a cost-effective manner. Our partners are always in mind Just as the Airframe Division inventory and services are continuously modified to meet the demands of the evolving marketplace, so too are our relationships with partners. In many ways, we try to think and act like airlines to better understand their needs. Another competitive edge is our shift to SAP technology, which seamlessly integrates our information system with our partners’ systems. It has allowed real-time visibility of our inventories, as well as those of our partners. SAP has also reduced the time it takes to respond to service requests and has substantially improved our ability to quickly respond to our partners’ needs. S t eve D e S t e fa n o V i ce P re s i d e n t A i r f ra m e D i v i s i o n P u rc h a s i n g , A s s e t Management, and M a r ke t i n g customer solutions: an idea whose time has come In recent years, the aviation marketplace has changed considerably to become 16 17 more service-oriented. Many companies now outsource non-core operations, such as financing, logistics and warehousing. That is where our Customer Solutions Division comes in. Anticipating market trends, Volvo Aero Services created this key division by bundling existing services of several Volvo entities, and offering them to customers through our Availability Program, a natural extension of our Company’s core competencies. Custom tailored for flexibility A full-range of customized services is available, and customers may select only what is required at the time. A customer may need logistics support but not financing, or vice-versa, and the flexibility within the Availability Program allows for those sorts of options. Regardless of the situation, we can tailor a variable solution to our customers’ requirements. Besides improving efficiencies, outsourcing non-core activities makes great financial sense. By availing themselves of our Availability Program, customers can avoid financing inventory and the staggering cost of investing in facilities H a n k Gi b s o n where they do not have a presence. These options help our customers reduce S en i o r V i ce P re si d ent risks by allowing them to avail themselves of the worldwide Volvo network. C u st o m e r S o l ut i o n s D i v is i o n AVAILABILITY CHARACTERISTICS: Vendor supplied inventory Service level guarantees Material logistics, sourcing and repairs One single point of contact One consolidated invoice per month An integrated OEM/MRO solution One stop for a multitude of solutions Entrusting activities to our Company is not only more economical, but also more efficient. Working seamlessly with customers, often within the same facilities, encourages open communication and enhances productivity. To that end, we manage warehouse space to provide tailored solutions to many of our customers. Our facility near Seattle, Washington, allows us to interact daily with one of our “Best Partners” in order to provide real-time solutions to all of our customers. 18 We have access to more than 600,000 part numbers worldwide, which allows 19 us to respond quickly to meet a customer requirement no matter where they are located. Quality is just as critical as speed, and we ensure that our parts meet the most stringent standards by thoroughly tracing and certifying their pedigrees. We are just as committed to recycling and environmental care. SAP enables communication ASAP To ensure the best, real-time communication, our Company utilizes SAP, a highly collaborative business software system. SAP can easily handle our present needs and is scalable to accommodate future growth. It positively affects every aspect of our business, expediting response time, tracking vital data, and offering complete transparency. SAP also integrates with our partners’ systems, providing them with real-time communication in a variety of areas. For instance, our system interfaces with Boeing’s, so customers can seek parts from both sources, get an immediate quote, and place an order online. As with all of our systems and operations, the goal is to improve customer satisfaction. By doing it right the first time, our aim is to exceed customer expectations. a worldwide network of sales offices and distribution facilities ARGENTINA ISRAEL UNITED STATES Buenos Aires Tel Aviv CALIFORNIA 20 P/F: +54 11 4665 9578 P: +972 3 966 6175 F: +972 3 966 8098 San Francisco P: +1 925 313 9360 21 AUSTRALIA F: +1 925 313 9361 Cairns, Queensland JAPAN P: +617 4032 3924 Volvo Nippon KK FLORIDA (Headquarters) F: +1 732 352 6737 Tokyo Volvo Aero Services Corp. P: +81 3 5404 0386 Boca Raton BELGIUM F: +81 3 5404 0387 P: +1 561 998 9330 Brussels F: +1 561 998 9334 P: + 32 477 365 456 PEOPLE’S REPUBLIC OF CHINA F: + 32 9 230 52 01 Beijing GEORGIA P/F: +86 10 6456 5888 Atlanta BRAZIL P: +1 404 714 5673 Rio de Janeiro Shanghai F: +1 732 623 6072 P/F: +55 21 33949575 P: +86 21 6335 2814 F: +86 21 6335 2003 Hampton CANADA P: +1 404 714 5682 Calgary SINGAPORE F: +1 732 623 6406 P: +403 932 8080 Volvo East Asia (Pte) Ltd. F: +732 623 6460 P: +65 6545 0881 NEW YORK F: +65 6545 0886 Auburn Montreal P: +1 315 255 1348 P: +905 755 0065 SWEDEN F: +1 315 255 1349 F: +905 755 0066 Volvo Aero Corporation Trollhattan NORTH CAROLINA Toronto P: +46 520 940 00 Volvo Aero Leasing LLC P: +519 833 9175 F: +46 520 939 10 Greensboro F: +519 833 0307 P: +1 561 995 5835 UNITED KINGDOM F: +1 866 947 3893 DUBAI Volvo Aero, Volvo Group UK Ltd Volvo Group Middle East London OKLAHOMA Regional Parts Distribution P: + 44 870 2422436 Tulsa HEADQUARTERS / SALES OFFICE / WAREHOUSE SALES OFFICE SALES OFFICE / WAREHOUSE Centre & Regional F: + 44 1483 523799 P: +1 918 834 2300 Competence Development Centre F: +1 918 834 2323 Dubai - UAE Kev i n F l y n n P: +971 4 803 85 55 TENNESSEE An international network of twenty-five sales offices and four distribution facilities respond to F: +971 4 886 05 20 Memphis P: +1 901 367 1937 customers quickly and globally. Headquartered in Boca Raton, Florida, Volvo Aero Services serves V i ce P re s i d e n t FRANCE F: +1 732 623 6058 Toulouse a key customer base globally. Wa re h o u s e O p e ra t i ons P: +33 672 779 813 WASHINGTON Volvo Aero Distribution Center GERMANY Kent Hamburg P: +1 425 251 4660 P: +49 0 40 429 18 562 F: +1 253 520 0756 F: +49 0 40 285 13 073 F: +1 425 251 4664 (Sales) Volvo Aero Services (Seattle) LLC Kent P: +1 425 251 4660 F: +1 425 251 4720 (Shipp/Traff) F: +1 425 251 4729 (Quality) a history of increased services 22 23 1979 1985 1990 1999 2001 2008 Founded in New York in 1979, under Before long, as the demand for To accommodate the additional One of the most significant changes In 2001, Volvo Aero changed our Today, Volvo Aero Services is the name Air Ground Equipment engine components increased, so business, a larger facility was occurred in 1999, when our Company name from AGES to Volvo Aero expanding through leveraging the Sales (AGES), the Company originally did our services, which by 1985 acquired in Boca Raton, Florida, was granted exclusive rights for the Services, which better reflected competencies of The Volvo Group. supplied engine parts to the included a division that bought, and our main operations moved sale and distribution of new and used our relationship to Volvo Aero. Our goal for the future is to be our aviation industry. sold and leased entire engines. there in 1990. The move spurred surplus spares for Boeing. It was It also indicated our focus on customers’ Best Partner by offering Engine management soon followed, a period of strong growth, as our the first of many mutually beneficial services, as opposed to being a variety of customized solutions and by the end of the decade, our Company developed partnerships, partnerships with key companies merely a trading partner. that free them to concentrate on Company offered an extensive range secured new contracts, and began that now include American Airlines, their core business. of much-needed aviation services. to restructure internally to better Kuwait Airways and British Airways, serve our customers. among others. together we are strong Entrusting non-aviation services to our Company is not only more economical, 24 but Volvo is one of the world’s leading suppliers of commercial transport solutions, including customer-specific solutions for financing, leasing, insurance, logistics and service. The Volvo Group’s strength comes not just from a portfolio of strong brands – each one a leader in its area of operations – but also from the synergies achieved within the group. The scope for what Volvo companies can achieve is constantly broadened through coordination and joint development projects. The large volumes achieved, as well as the group’s homogenous structure, provide extensive resources for the development of technologies and products that fulﬁll existing customer demands and accurately anticipate future needs. The Volvo Group also includes: Volvo Trucks – the world’s second largest manufacturer of heavy long haul trucks, in particular vehicles weighing over 16 tons. Renault Trucks – one of Europe’s largest truck manufacturers. Products include light trucks, heavy long-haul trucks and military vehicles. Mack Trucks – one of North America’s largest manufacturers of heavy-duty trucks for local-, regional- and national distribution, as well as construction. Volvo Buses – the world’s second largest manufacturer of large buses and bus chassis, and Europe’s leading maker of natural gas-powered buses. Business includes transit and traffic management systems for major urban areas. Volvo Construction Equipment – one of the world’s largest manufacturers of equipment for applications including civil engineering, mining, forestry, extraction and recycling. Volvo Penta – world leader in the manufacture of marine engines and complete drive systems with power outputs from 10 to 2,000 hp. Volvo Financial Services – coordinates Volvo’s customer financing, insurance, treasury and related services. Its creative solutions enhance the long-term competitiveness of the Volvo Group and its partners. Volvo Logistics – designs, develops and manages business logistics systems for the automotive and aviation industries worldwide, serving customers both inside and outside the Volvo Group. Volvo Parts – handles logistical services at the aviation spares distribution center in Dubai for Volvo Aero Services, as well as supplying parts to other companies within the Volvo Group.
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