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Defence
Thales wins €1bn supply chain contract
Thales wins €1bn supply chain contract
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Thales wins €1bn supply chain contract

The French defence ministry's integrated through-life support structure for aeronautical equipment and systems (SIMMAD) has awarded a 10-year service contract to Thales worth €977m, including €70m in firm orders in 2017, for the integration of an optimised supply chain covering the procurement of aeronautical consumable items for the French forces (LORCA programme).

Thales will set up a supply chain organisation covering the procurement, storage and transportation of 200,000 item references to the 47 delivery points in the SIMMAD and SIAé support networks in metropolitan France. Thales will ensure optimised flow management, procurement of aeronautical spares such as tyres, electronic components, cables, seals, etc., creation of an industrial inventory and processing of obsolescent items.

Thales will contribute its expertise in aeronautics, airworthiness constraints and obsolescence management, as well as its know-how in dedicated, dual-use central purchasing organisations.

Storage and transportation of aeronautical spare parts will be outsourced to Kuehne + Nagel, one of the global leaders in logistics, currently responsible for the European supply chain of consumable items for some of the major players in the aerospace industry. Recurring items will be dispatched to the various sites within 7 days and the service will be fully operational in September 2017.

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