Why Choose MRO SmartHub for Company Benchmarking?
MRO SmartHub enables organizations to benchmark their material procurement and inventory management performance against industry standards, unlocking new cost savings and efficiency opportunities. By leveraging IATA’s neutral and comprehensive industry database, companies can gain strategic insights and optimize their material supply chain to stay competitive
- Company-Wide Benchmarking – Compare procurement performance and material spending against industry averages and historical data, helping companies understand their position in the market.
- Detailed KPI Calculation – Assess key performance indicators (KPIs), including material spending, potential savings, and achieved savings.
- Condition and Time-Specific Analysis – Evaluate spending and savings by part condition and purchase timing, ensuring accurate and relevant insights.
- Strategic Decision Support – Make data-driven strategic decisions using real-time market data and industry benchmarks.
16.4% average savings potential
1.6mil part numbers covered
18+ mil applicable data points
Price history back to 2018
Comprehensive Savings Potential Analysis
- Industry Example: In a recent benchmark study, a company identified $8.5 million in potential savings and $11 million in achieved savings using MRO SmartHub’s FMV data.
- Category-Specific Insights – Analyze savings potential by material type and manufacturer, enabling targeted cost optimization strategies.
- Monthly and Yearly Tracking – Monitor savings performance over time, helping companies measure progress and adjust strategies dynamically.
- Comparison with Industry Peers – Benchmark procurement efficiency against competitors, gaining insights into industry best practices.
Performance Insights and Strategic Recommendations
- Highlighting High-Saving Items – Identifying parts or suppliers with the highest potential savings.
- Example Insight: 123 parts caused 50% of the total potential savings, while 5 manufacturers contributed to 50% of total savings potential.
- Identifying Cost Inefficiencies – Detecting parts consistently purchased above market value, allowing strategic negotiation or alternative sourcing.
- Guiding Strategic Procurement Decisions – Providing scenario analysis and what-if simulations to evaluate different procurement strategies.
Benchmarking Methodology and Transparency
- Data Integrity and Security – All data is anonymized and securely managed under IATA’s neutral governance.
- Comprehensive Data Coverage – Benchmarking is based on 18+ million applicable data points contributed by 30 companies, covering a period since January 2018.
- Transparent Analysis – Clear calculations with condition-specific and time-specific FMV comparisons.
- Detailed KPI Metrics – Includes potential savings, achieved savings, and industry-specific comparisons for strategic benchmarking.
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Contact us for more information
MRO SmartHub’s Company Benchmarking helps organizations maximize cost savings, optimize procurement efficiency, and strategically manage inventory. By utilizing accurate market insights and comprehensive performance metrics, your team can drive strategic growth and maintain a competitive edge.
Frequently Asked Questions
What is the IATA MRO SmartHub Benchmark Study?
The benchmark study is a data-driven analysis of your company’s material procurement activities, comparing your purchase, sales, or repair prices with Fair Market Values (FMVs) based on anonymized industry data. It identifies potential and achieved savings and offers valuable insights into your company’s efficiency.
How does the benchmark study work?
You simply provide basic data, such as transaction history (purchase, sales orders, and/or repair orders). Based on this information, we generate a detailed report that includes:
- Fair Market Value (FMV) comparisons
- Key pricing indicators (KPIs)
- Identified potential and achieved savings
- Market trends and part-level analyses
Is my data secure and confidential?
Yes, all data is handled under strict confidentiality agreements. Your company’s information is anonymized and analyzed on a separated environment to generate your individual benchmark report.
What kind of insights will I receive?
Your benchmark report will show:
- How your last purchase, sales, and/or repair prices compare to market FMVs
- Where you have already achieved savings
- Where additional savings potential exists
- Which material types or suppliers offer the biggest cost-saving opportunities
How much data do I need to provide?
You can start with a simple sample of up to 6 months of transaction history. For a more comprehensive analysis, larger datasets can be provided.
How is the Fair Market Value (FMV) calculated?
FMVs are based on over 18 million data points collected from airlines, MROs, OEMs, and suppliers since 2018, ensuring reliable, current, and quality-assured market insights.
What is the typical saving potential identified through the benchmark study?
On average, companies identify a potential savings range of 10% to 17% of their total material spend. Some participants have realized savings of up to $11 million by aligning their procurement strategies with market benchmarks.
How can I request a benchmark study?
Simply contact our IATA MRO SmartHub team to get started. Our team will guide you through the data submission process and deliver your customized benchmark report.