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April 11, 2017

Thales wins €977m supply chain contract from French Defence Ministry

Thales has secured a €977m contract from the French Defence Ministry's integrated through-life support structure for aeronautical equipment and systems (SIMMAD) for the integration of an optimised supply chain covering procurement of aeronautical consumables.

Thales has secured a €977m contract from the French Defence Ministry's integrated through-life support structure for aeronautical equipment and systems (SIMMAD) for the integration of an optimised supply chain covering procurement of aeronautical consumables. 

Under the ten-year service contract, the company will take responsibility to manage a controlled supply chain that is adapted to the aeronautical requirements of the French Air Force.

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 networks in metropolitan France, in support of French forces' LORCA programme. 

The LORCA service contract is expected to become fully operational in September.

"It will contribute to expertise and experience regarding the aeronautical environment, airworthiness constraints and obsolescence management, as well as its control of dual, specially adapted central purchasing organisations."

The company will ensure optimised management of flows by drawing up forecasting calculations, procuring aeronautical spare parts such as tyres, electronic components, cables, and seals, as well as setting-up an industrial stock and processing obsolescent items.

The storage and transportation of aeronautical spare parts will be outsourced to Kuehne + Nagel, Thales stated.

Thales secure communication and information systems executive vice-president Marc Darmon said: “The logistics IT system based on intelligent algorithms, and our partnership with the logistics provider Kuehne + Nagel, guarantee perfect stock management based on real consumption, that is adapted to the changing aviation activities of the air force, which can count on us to provide a flexible service at all times.”

Thales stated it will contribute to expertise and experience regarding the aeronautical environment, airworthiness constraints and obsolescence management, as well as its control of dual, specially adapted central purchasing organisations. 

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