Do you waste hours of your time sending and processing RFQs? This is TIME you’ll never get back! Read this post and we’ll share with you simple ways to source your next aircraft part requirements.
Are you purchasing aircraft material daily?
Like most airlines and MROs, it is important to complete projects, keep aircraft in the air and make money.
But what if, everything you thought about purchasing was costing you more money? The money you didn’t know was seeping through the cracks as hidden operational expenses. Money not on the POs you send, but hidden in everything that surrounds the PO.
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 $ave By Consolidating initiative. A lot of the times it’s through our maintenance check program. Interested? Fill out the form below….
These long lists are daunting. You have to review the list, send out RFQs, and then eventually cut POs. It get’s even worse when you try to manage all the POs you’ve cut, making sure the aircraft parts get to you on time and on budget (not just the PO price but the overall cost of the order).
It’s time consuming and stressful.
You start by sending your long aircraft part list to 20+ suppliers. In reality, it makes sense. You test the market and see who has the best price and send POs from there. Right?
This is inefficient and counterproductive. Sending out the email is the easy part. What happens when you start processing RFQs and sending POs?
Are you going to send POs to 20 different suppliers? If so, your costs now have doubled once you factor in processing and transit costs.
This mindset gets expensive. Sit back and think about it. Really dig deep on all of the cost associated with cutting so many POs.
What if there was a better way? What if you cut 1 PO and saved thousands of dollars on freight and time, and nothing else changed (i.e. delivery time, quality, etc.)?
Streamline your RFQ process
In an industry where time is money, creating strategies to expedite operational processes is integral to any airlines success.
What if you could send a 50 part list, have it quoted by one supplier in 5 days, and at your facility in another 5 days? Imagine the cost savings associated with this streamlined focus.
Instead of sending out mass emails (I know, I know, this is tough since it’s a way to price market) send out several RFQs to your top suppliers. If they're your top supplier, they’ll be able to support 90% of your RFQ list.
Once you have your quote, you process the order. We like to call this “$ave By Consolidating.” It’s as simple as that.
When you mass email, you receive hundreds of quotes and no quotes that you have to process. Who has the best price, who’s approved, where is it shipping from, who has what, and when can they get it to us? It get’s chaotic fast.
When you process long lists through one trusted supplier you benefit from efficient communication and price conscious consolidations.
Meet my 1 list aircraft part RFQ strategy & it starts with trust
This is the time when you put your trust into an honest partner.
If they haven’t or can’t prove they’ve supported such a long list requirement, I caution you now. Quoting is the easy part. It’s the coordination of having stock availability and close ties with OEM networks and MROs to getting your material on time and on budget.
It’s not your responsibility to play babysitter to 50 suppliers. It’s your responsibility to keep your aircraft in the air, reducing downtime, and increasing up-time.
When a 50 part requirement comes across your desk, do the following:
- Send this 50 part list to a trusted partner.
- Have them quote it in a timely manner, typically 3 - 5 days for a 50 part list.
- Review the quote and notice the lead times. The majority of the spares should ship within 3 - 10 business days depending on the requirement. More rotables might extend lead times if they have to get repaired. But communication is key so tell them your exact requirements.
- Cut 95% - 100% of the RFQ list to one trusted partner and let them work their magic.
- Upon completion review how they communicated through this process.
Once you receive your material, review their performance. If there was minimal errors and they were super responsive, you found your trusted long list preferred partner.
P.S. We work hundreds of long lists every week and often times they’re apart of our maintenance check program. We are no strangers in coordinating our $ave by consolidating mindset and supporting airlines with 20 - 160 component shipments. We can prove it. Send your list today and start by filling out the below form.