Case Study

Revolutionizing Airline Logistics: Covenant’s Expertise In Reverse Logistics Optimizes Major Airline’s Supply Chain, Saving Them Millions

Airplane maintenance parts. A complex network. Special handling. Waste reduction. Covenant makes it all work for a top-four global passenger airline.

The Overview –

In today's fast-paced air travel industry, efficient and sustainable supply chain practices are crucial. The following case study demonstrates how we helped anair travel leader overhaul its Return Material Authorization (RMA) process, leading to significant cost savings and a more sustainable operation.

The Challenge –

Our client was facing several operational inefficiencies in their RMA process. Materials were not being sorted and counted correctly, leading to double payments to warehousing providers. The transfer of goods was not optimized, leading to the underutilization of cargo space. Moreover, the process was not sustainable, generating a significant amount of waste. So, this customer came to us, a long-trusted transportation provider, looking for a solution that would streamline the RMA process, reduce costs, and improve sustainability. 

CHARACTERISTICS
(can  be pulled from overview)
  • Needs for optimization that leads to cost savings
  • Heavy focus in reverse logistics
  • Opportunities for sustainability improvements
EXPECTATIONS
(can be  pulled from challenge)
  • A better counting and sorting process
  • Optimization of transfer process
  • Reduction of waste
  • Reduction of costs 

The Solution –

  • Comprehensive SOP
  • Three dedicated facilities
  • Sorted, cleaned, and sanitized items
  • Incorporated a new transfer routine
  • Introduced a dedicated pickup line

The Results –

Our innovative solution has generated significant benefits for the client. Over the past year and a half, we have processed approximately more than 4 million items, equating to over 18,000 pallets, 700 truckloads, and approximately 14,000 TONS or 28 million lbs. of waste that has been kept out of the landfill. This has led to close to $4.5 million in annual cost savings for the company (and growing).

Furthermore, we have significantly reduced the coordination and man-hours involved in the RMA process. The kitchens no longer need to count items before shipping, and the items arrive in a condition safe for travel. We’re always looking to optimize their processes with each passing day and look forward to the future growth with our partner.

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