DC Velocity - November 2012

Getting a new business off the ground

The Problem: Replacing a damaged airplane part or component can be an expensive proposition. It costs airlines hundreds of thousands of dollars to have an aircraft out of service. The replacement parts themselves—often many feet high, wide, and long—can be even more expensive. And because there’s no way to predict where or when a particular airplane will sustain damage to a specific part, airlines don’t want to keep a lot of this high-priced inventory on their books. So when, for instance, a bird strike unexpectedly damages an engine cowl, airlines turn to someone like George Sanford of Jelece Aviation Solutions for help.

Sanford is a middleman who buys “ rota-bles”—high-value aircraft parts that can be repeatedly repaired and restored to serviceable status. He specializes in parts for wings, such as ailerons, stabilizers, and the protective housing for the engines, making sure the parts are repaired if needed, and that they pass a rigorous safety inspection and are certified for reuse. When Jelece wins a bid, Sanford must deliver the certified replacement part whenever and wherever the airline specifies, swapping it for the damaged one, which he then readies for the next order. The time from bid to delivery can sometimes be as little as two days.

When the veteran aerospace procurement professional decided to launch his own company earlier this year, he had to prove to potential customers and investors that he could be counted on to deliver the goods on

time. “Being reliable is very important in my business. It gives me credibility in the market,” Sanford says.

Jelece would also have to provide parts at a competitive price, which meant obtaining them not just in North America but also from China. Yet his tiny company was brand new, and Sanford had no experience as an importer. Furthermore, as a broker, he did not want to sink money into assets like a warehouse or trucks. He needed a logistics partner he could rely on to store and move heavy, bulky shipments efficiently and cost-effectively and with little or no advance notice, in both domestic and international commerce.

THE PLAYERS CUSTOMER Jelece Aviation Solutions Primary business: Replacement aircraft parts

Headquarters:

Fort Worth, Texas

SUPPLIER Icat Logistics Inc.

The Solution: Sanford’s previous employer, an aircraft manufacturer, had a relationship with the Dallas branch of Icat Logistics Inc., an international logistics company headquartered in Elkridge, Md. Because Texas is a major hub for the aerospace industry, the local franchise was well versed in the logistical requirements of that business. So when Sanford was ready to launch Jelece Aviation Solutions, he turned to Icat to help him get the business off the ground.

Icat handles the physical aspects of the supply chain, holding Jelece’s inventory in its Dallas-area warehouse; arranging transportation between the warehouse, suppliers, repair contractors, and the airlines; and handling air and ocean freight forwarding and customs brokerage for international ship-