Working long requirement lists is difficult. You’re in charge of getting prices and availability and the pressure is on.
At a very basic level you send an RFQ to a predetermined list of people. But on a more complex level you send out the RFQ, input the quotes, determine best options, weigh all best case scenarios, cut POs, babysit suppliers, organize various shipments, resolve issues, track AWBs, work with freight forwarders to ensure no delays, and the task list goes on and on.
In fact sending out RFQs is easy. It’s the coordination of who and when to purchase from that’s stressful.
You make it more complex than necessary. Not because you don’t know what you’re doing, but you’ve just been doing it for so many years. You’ve built a habit.
Why processing a long aircraft maintenance RFQ has you stressed
When processing a long RFQ list the stress you feel is determined on the type of planning you do. There are two ways you can go about it.
One, you can send your requirement as a mass blind copy email to everyone you know. The problem is you’ll get a flood of quotes back and begin to experience data overwhelm.
Two, you can send an email to your top, trusted partner. In a streamlined fashion they’ll quote your long aircraft maintenance list and the best case scenario and worst case scenario for lead times. They’ll also help you consolidate and save money in various areas of the distribution and maintenance process. This decision will give you more time to focus on your actual aircraft maintenance and take a substantial amount of burden off your chest.
Those are your two options.
If you decide on option one, here are 9 honest truths you must live with:
- You’ll spend more money on freight cost. Factor in 2% of total cost per part for freight if you procure from multiple source. When you streamline your procurement activities and consolidate with a trusted partner the cost will be driven down to .5% - 1% of the total cost of your order.
- Prepare to resolve issues. The more you spread your purchasing activities the more issues that will arise. It’s when you reduce your supplier count that will help mitigate issues occurring. Your partner should try to resolve any issues that occur prior to you even knowing. This keeps things moving and reduces stress.
- You’ll become a full time supplier babysitter. The more suppliers you work with the more time and money you’ll spend babysitting them. From having to call for order updates to getting AWBs, there’s a ton of activities to keep them “honest.”
- You’ll spend more of your time processing orders. The more POs you cut to various sources the more you have to process both on the purchasing side and on the receiving side. This takes time and draws your attention away from other activities.
- You’ll get headaches more often. Have you ever heard a supplier try to make excuses of why something is delayed or why they have to cancel? It makes your head throb and the more suppliers you deal with the more you’ll hear the petty excuses.
- You’ll have to organize all of the individual quotes coming in from multiple suppliers, instead of having one long quote from a trusted partner.
- Most suppliers only want to deal with rotables (not us!), so you’ll have to worry about meeting PO minimums for expendables and consumables. Don’t forget to tac on freight cost in addition to these items.
- You’ll still have to worry about all of your consumable and expendable needs. These are the inglorious parts but when you add them into consolidations you save tons of money. It’s our little secret, we love consumables and expendables!
- When you process RFQs and orders without a plan your anxiety and stress levels skyrocket.
It all comes down to being efficient. How can you save the most time and money and get your requirements when and as needed?
If this means consolidating your order with one supplier, then do it. It will make your aviation life much easier.
Remember, you want to utilize proactive solutions in a highly reactive industry.
P.S. We quote thousands of parts every week to our airline partners. We have it down to a science. We not only quote the material, we deliver it through our $ave By Consolidating initiative. A lot of the times it’s through our maintenance check program. Interested? Fill out the form below….