Demand for air travel and consequently growing aircraft fleets have propelled the commercial airline maintenance, repair and overhaul (MRO) sector into steady growth for the next decade. The total MRO sector is estimated to reach $81.9 Billion USD by the end of 2019*, a significant portion of which is attributed to material costs.Facing a continuously growing aftermarket airlines and MRO service providers lack the optimum level of transparency to determine the best price and timeframe of needed material. Consequently, leading to costly resource and supply chain inefficiencies.
With IATA’s MRO SmartHub, airlines and MRO service providers are expected to shave 10-15% off material cost through an innovative web-based business intelligence platform.
Through the platform, users are provided a multitude of value-added statistics presented in a simplified and efficient method allowing for easier demand consolidation, material procurement, inventory valuations, and excess spares resale opportunities.
*Source: 'Global Fleet & MRO Market Forecast Commentary 2019-2029, Oliver Wyman'
Better procurement with greater knowledge
IATA’s MRO SmartHub is a neutral web-based platform enabling airlines,
MRO service providers, OEMs, and appraisers to gain a greater transparency of
the surplus aftermarket plus real-time access to fair market values (FMV) for
Utilizing the real-time fair market value, procurement professionals eliminate the necessity to conduct extensive and sometimes costly market research initiatives.
MRO SmartHub offers industry-tuned capabilities allowing users to quickly and accurately value surplus part inventories for purchase. Combining all necessary procurement statistics with market availability and turnaround time, users can reduce operational resource requirements.
Optimized inventory with seamless transactions
Through a dynamic interface either via the platform or utilizing an organization’s pre-existing tool(s), MRO SmartHub redefines transactional business simplifying and thus expediting a user’s ability to purchase or sale material with preferred partners.
MRO SmartHub creates a distinctive trading channel and culminates all necessary information with associated statists, removing supply chain and sourcing inefficiencies. Coupled with true availability and supplier metrics, users unlock new stock optimization abilities eliminating high safety stock necessities.
Maximized profitability with improved stability
- Unlock undiscovered value – By incorporating the fair market value, material marketability, and access to a multitude of part numbers, MRO SmartHub provides users new capabilities to maximize material sales value quickly
- Consignment with better control – MRO SmartHub circumvents organizational limitations by offering unique consignment functionalities enabling airlines and MRO service providers linked with a third-party vendor to unload undesirable excess spares
Monitor and track inventory – Through the platform, organizations gain the ability to monitor and track on-hand inventory true value throughout the material and/or asset life-cycle
MRO SmartHub Platform
The MRO SmartHub platform offers industry-tuned capabilities via two easy-to-use modules: the Evaluator and the Connector.
Encompassing customer-provided information, external market data, and historical transactions a mathematical algorithm determines the true fair market value of used aircraft parts real-time.
In addition, the platform enables users to access decision-making support functions for selling, buying, effective utilization of on-hand inventory.
- Purchase price reference – Detailed orientation and baseline prices to enable on-time, on-budget procurement of new and available used parts
- Repair price and turnaround – Accurate and reliable statistics to help you make the best decision for time and budget constraints
- Sale price reference – Fair market value and market assessments unlocking undiscovered inventory value to enable you to price your own parts for sale accordingly
- Recommendation of best course of action – Reduce your workload and inefficiencies with improved visual enhancers, the platform advises whether to purchase or repair aircraft parts, based on availability and pricing
Material package evaluation – Swiftly determine the fair market value, marketability, and best utilization method for extensive material inventories, parts lists, and fit-lists (e.g. tear-downs)
With effortless integration, you can connect to all your preferred partners and transact via the platform. Users benefit from seamless information exchange and enhanced trading opportunities of new and used aircraft parts.
- Dedicated tunnel between two trading partners – Buyers can specify what they are seeking. The seller selects the parts to show each buyer, with quantities, prices and availability, providing transparent but confidential information
- Easier interactions – Communication systematized and negotiation simplified
- Easy access to Evaluator – To ensure you have convenient access to the Evaluator functionality without additional integration resources
What Our Customers Say
|“The MRO SmartHub is a global platform that is applicable to all. The market really needs this. By creating greater transparency, the MRO SmartHub will generate fair market value. It will rebalance the aviation value chain and help airlines save money.”
Fabricio La Banca, Head of Group Purchasing Surplus, Lufthansa Technik AG
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