Embraer and Scoot marks enhancing operational efficiency and reducing costs

Tuesday, February 20, 2024

Embraer and Scoot, the low-cost arm of Singapore Airlines, have recently entered into a significant agreement for the Embraer Collaborative Inventory Planning (ECIP), marking a significant step towards enhancing operational efficiency and reducing costs.

 This customized expendable spare parts inventory management program is designed to help airlines streamline their inventory levels, thus cutting down operational expenses. The integration of the ECIP agreement with the previously established Pool Program for Scoot underscores a comprehensive support framework for Scoot’s forthcoming fleet of nine E190-E2 jets, positioning Scoot as the inaugural ECIP customer in the Asia-Pacific region.

Mr. Ng Chee Keong, Scoot’s Chief Operating Officer, expressed his enthusiasm for the continued partnership with Embraer, highlighting it as a testament to Scoot’s dedication to achieving optimal performance with the new E190-E2 fleet. He noted that this strategic arrangement is pivotal for ensuring operational efficiency ahead of the arrival of their first Embraer jet.

Carlos Naufel, President, and CEO of Embraer Services & Support, reflected on the partnership, emphasizing Embraer’s commitment to understanding and meeting the dynamic needs of their airline customers. He expressed gratitude towards Scoot for their trust and looked forward to the efficient operation of their E190-E2 fleet.

Embraer’s services and support operations in the Asia Pacific are centered in Singapore, with a Regional Distribution Centre strategically located within Changi Airport’s free trade zone. This center is instrumental in providing continuous spare-parts provision and support, leveraging Singapore’s strategic location for enhanced regional access.

The ECIP program brings several benefits to its customers, including significant reductions in inventory investment by transferring the majority of this investment to Embraer, thus alleviating the financial burden on airlines. It also offers fixed yearly pricing for covered items, enabling predictable cash flow management. The program is data-driven, utilizing advanced software and Embraer’s planning expertise to make weekly ordering recommendations based on consumption patterns. ECIP customers benefit from Embraer’s extensive material services management expertise and a global logistics network, ensuring efficient and reliable service delivery.

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