Google+ Cost Savings

Cost Savings


Cost Saving has become the top priority at most of the MRO Companies.
The effort to achieve that usually ends-up with focusing only on the material purchase price.

Ok and what is wrong with that?

Simply not enough. For most of the suppliers not much space left to reduce price because for years now they were not able to raise.In order to stay in business they covered the manufacturer’s price increases from their commission.
Also many times the material price is not the biggest cost at an MRO.
Have you ever ordered as an AOG a few bolts costs 1-2 EUR and ended up paying 200-300 EUR shipping cost?

According to the latest surveys almost half of an MRO’s spending is shipping cost …

So what Luxury Trade can offer to help you with cost savings?

As a Value Added Service we are offering competitive international freight forwarding solutions to our Customers.
We have established relationships with carriers of all kinds, from air freighters to trucking companies and negotiated the best possible price to move your material on the most economical route.

(The mentioned prices are fictional)

Let’s assume that you want to order 10EA of PR1422B2 Fueltank Sealant.
Usually you get it for 26EUR/EA and the regular shipping cost is 300EUR.
Let’s say you ask a quotation from us and from a competitor.

Our offer:
26EUR/EA + Shipping door to door 250EUR

Offer of the competitor:
24EUR/EA ExWorks which is 300EUR with your forwarder

Savings with the competitor: 20EUR
Savings with Luxury Trade: 50EUR

Which means that even if you get a lower material price from a supplier doesn’t mean that you will pay less.

In some cases we can save you even more:

Let’s stay with the above example and let’s say that the pick up address of this shipment is at PPG Hamburg.
In the same time another order of yours is ready for pick up at Airbus Hamburg.
We can ship that too with the same forwarder for one price. You just saved another 300EUR.

As you can see cost savings has many aspects you should take into consideration.
Luxury Trade is committed to help you in these ambitions so in case of any enquiry please don’t hesitate to contact us.