MEDIA SPOTLIGHT – Boeing completed its $4.25 billion acquisition of KLX on Oct. 9, its largest since buying McDonnell Douglas in 1997 for $13.3 billion, MRO-Network.com reports.

Now that the companies are sharing data, Boeing sees opportunities to accelerate its synergy, including quantity price breaks by combining purchase orders for commodities that both companies were buying on their own, which can result in cost savings for customers, writes Lee Ann Shay of MRO-Network.com.

“Boeing didn’t distribute fasteners, but it buys about the same quantity for its production operation as KLX did before the acquisition, so when you overlap part numbers, suppliers and commodity codes, Boeing’s purchasing power doubles,” Shay writes. “Expect Boeing to seek cost savings from its fastener suppliers, which could also benefit its customers.”

Supporting customers faster is another goal of the acquisition.

“KLX is teaching us how to be faster,” stated Ken Shaw, senior supply chain VP for Boeing Global Services.

“Before acquiring KLX, Boeing was starting to invest in ways to be more integrated with customers’ parts stocking operations as a step to achieve this,” Shay writes. “KLX already is doing that by being integrated in customers’ shop floors day to day through its bin stocking programs for OEMs, airlines and MRO.”

The Boeing/KLX combination also allows customers to choose from a much bigger parts offering when you combine KLX, Aviall and Boeing into one integrated operations, which should also consolidate customers’ supplier management and lower costs.

“We’re becoming more nimble, but we’re not where we want to be yet” in its drive for competitive service offerings, says Boeing Global Services CEO Stan Deal.

During 2017, KLX Aerospace Solutions Group segment (ASG) revenues – primarily from fasteners – rose 5.9% to $1.42 billion, as revenues from both commercial aerospace manufacturing and aftermarket customers increased by approximately 6%. ASG operating earnings increased 8.1% to $238.5 million.

With approximately 2,000 employees,  KLX’s Aerospace Solutions Group is headquartered in Miami, with facilities in more than 15 countries. KLX – the former B/E Aerospace fastener division – distributes fasteners, bearings and other parts for commercial, military and business jets and provides logistics services. Web: KLX.com

Editor’s Note: Articles in MEDIA SPOTLIGHT are excerpts from publications or broadcasts that show the industry what the public is reading or hearing about fasteners and fastener companies.