DHL Supply Chain has developed a solution to track and consolidate almost 25 million aero parts in over 100 locations worth an estimated US$487.41 million to give KPMG the option of managing insolvent UK firm Aero Inventory out of administration, reported Manila Bulletin. The solution also means a three-year contract worth $17.22 million for DHL and the expansion of its aerospace hub in Singapore by 55 percent to 70,000 sq ft. DHL Supply Chain's solution to uncover, recover and consolidate inventory from locations across the world, plus the development of a proper ongoing sales channel, will enable KPMG to maximise the sales value of the inventory as well as give them the option of rebuilding Aero Inventory into a viable business. To achieve this, DHL will create three gateways in Canada, Hong Kong and Japan to consolidate parts released from Aero Inventory worldwide and then ship them to Aero Inventory's single, global hub, which DHL will run out of its aerospace hub in Singapore to supply airline clients all over the world. Jim Tucker, joint administrator of Aero Inventory and restructuring partner at KPMG, said: "Signing the deal with DHL shows our commitment to re-launching Aero Inventory as a world leader in the sale of consumables and expendables (C&E) to the airline industry.'' "Since our appointment as administrators in November 2009, we have been restructuring Aero Inventory to put it on a solid footing for the future. Reconciling the massive inventory spread across the world to the central hub in Singapore is the focus of the restructuring process and will give Aero Inventory's customers clear visibility of available stock and trace documentation.'' KPMG is the administrator for Aero Inventory, a company that up until November 2009 offered airlines and MROs such as Qantas, All Nippon Airways, Air Canada and Haeco, a service involving buying, storing, leasing and maintaining an inventory of various consumables and expendables for aircraft components such as airframe structures, engines, wheels, brakes, electronics and interiors. Aero Inventory purchased stocks of components from customer airlines and sold them back to the airline at the point in time when they were needed. source: cna