The key to customer satisfaction and profitability for third-party MROs

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Effective maintenance, repair and overhaul (MRO) and resource management are key to customer satisfaction and profitability for third-party MROs.

The cost of through-life MRO now outstrips the cost of aircraft acquisition, and as such, airlines are signaling their intent to outsource maintenance – including airframe, engine, component and even line maintenance. In fact, today more than 60 percent of heavy aircraft maintenance is outsourced, and that number continues to grow. 1

In addition, record-low fuel prices have truly globalized this market and have allowed operators to choose MRO partners based on service and quality rather than simply geographic proximity.

Third-party MROs are setting their sights on this market share. To compete, they must be able to deliver exceptional customer service and differentiate themselves in a competitive global marketplace, while remaining compliant and profitable.

Deliver bottom-line benefits to your airline customer by reducing their maintenance costs and increase your profitability by doing so efficiently

Adopting a holistic approach to software that integrates maintenance across the enterprise – from quotation handling, maintenance planning and execution, to configuration management, supply chain and logistics, cost tracking and invoicing – results in lower operational and inventory costs as well as efficient workforce management, financials, human resources and of course, enhanced business intelligence. This will provide third-party MROs with a real business differentiator going forward – driving in that 10 percent maintenance improvement directly linked to their airline customer’s profit and bottom line.

IFS software delivers value to third-party MRO providers by:

  • Controlling predictability
    • Confidently bid, manage and meet turnaround time commitments
  • Controlling profitability
    • Bid, quote and execute effectively to the terms and conditions of every contract
  • Controlling quality of service
    • Operational oversight controls to identify quality escapes and prevent recurrence
    • Providing consistent customer service in line with expectations

Implementing business-wide software that specializes in facilitating these MRO practices may seem a daunting task. Indeed, enterprise software rollouts can be costly and disruptive to a business focused on turnaround times. But a modern enterprise solution like IFS Applications does not rely on a disruptive, monolithic approach. Modern enterprise-wide solutions are modular, meaning that they can be implemented at a pace that can be absorbed by the business without interrupting scheduled business operations – a critical consideration in commercial aviation. This modular, step by step approach, however, cannot come at the expense of deep interoperability between MRO and other parts of the business like human resources, which handles maintenance technician capacity, supply chain management which handles maintenance inventory and finance which determines the degree to which expenditures on spare parts or hiring will benefit the business, as well as accurate quoting of work.

Next steps

We are obviously enthusiastic about the potential that maintenance software holds when it comes to driving margin for third-party MRO businesses and would love to learn about your unique business challenges and determine to what extent we can help you surmount them. Comment below to share your thoughts and download the Efficient process and careful resource management is critical to effective MRO whitepaper to learn more.

1 http://aviationweek.com/2018-commercial-fleet-mro-forecast-market-summary-report


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