Looking to upgrade your company’s Oil and Gas ERP? 4 Critical Factors to Consider
The oil and gas industry certainly did not expect 2022 would bring more supply chain disruptions thanks to the war in Ukraine. Unstable market...
7 min read
Eric Smith : Mar 8, 2022 12:36:31 PM
Current market conditions are bringing a lot of turbulence to the aviation industry. Covid-19 took a huge toll on vacation and business travel. While vacation travel will rebound as Covid-19 wanes, business travel isn’t expected to return to pre-pandemic levels. Companies have discovered that it’s a lot cheaper to bring people together via Zoom meetings than to pay for them to travel.
The price of aviation turbine fuel has also skyrocketed following the unrelenting rise in global oil prices. And then there’s the ban on importing Russian titanium which is needed to make engine parts and landing gear for long-haul jetliners. Difficult market conditions like these will certainly affect profits. Airlines will be looking for new ways to cut costs to offset losses.
Shrinking profits in recent years have already forced industry leaders to come up with ways to trim budgets and maximize earnings. One of the ways they’ve done so is by rethinking the whole approach to aviation maintenance. The traditional approach to this work has been to let the Original Equipment Manufacturer (OEM) maintain the airline fleet. In recent years, that has been changing. Maintenance, Repair, and Operations shops (MROs) are increasingly taking on the work of airplane maintenance and repair. Experts think this trend of outsourcing airplane fleets for repair and service will continue to grow, and that MROs will continue to take more of the OEM’s share of the airplane maintenance market.
MROs have been successful at luring business away from the OEMs because their work processes have generally returned the airplanes into service faster with no loss of quality. MROs have been quick to see the value in adopting sophisticated aviation business management software technologies. Aviation software helps them service and repair the aircraft efficiently and promptly get it back into operation. Increased efficiency brought about by aviation ERPs has been the main reason why MROs have been able to cut into the airplane maintenance market – a market that once exclusively belonged to OEMs.
Today, 60% of heavy aircraft maintenance is outsourced and MRO partners are chosen based on the service and quality they provide. That percentage is expected to steadily rise. Aviation Week Fleet forecasts that the MRO market for the military fleet maintenance market alone will exceed $1.1 trillion over the next 10 years.
Independent MROs must be able to deliver exceptional service and confidently bid, manage and deliver on the contracts they win. An aviation ERP makes it possible to accurately bid and quote, plan and schedule and release the aircraft on time. An ERP for aviation streamlines the whole process: cost tracking, reporting, billing, analysis, insight into the supply chain, procurement, stock and warehouse management, tools, material, and parts availability are all handled by the ERP. An aerospace ERP can also efficiently manage financial and HR teams, compliance management, licensing, and other work processes.
All ERPs streamline business processes through integration, improved visibility, automation, data analysis, reporting, tracking, and simplifying customer relationship management. Accounting, financial and human resource management are also often incorporated into an ERP. Component MROs utilizing such technologies get an enterprise-wide overview and control of business operations.
Superior contract management - ERP software provides support for customized contract creation. Once the contract is created, it is then tracked and monitored across multiple departments. Automation makes the collaborative process proceed swiftly, helping mitigate errors. Analytics assess how the contract will impact sales, materials, and billing. This helps companies create accurate bids so that projects don’t go over budget.
Production planning and control - ERPs support the planning needed for routing, scheduling, and executing workflows and monitoring and reporting progress. By introducing better planning capabilities, companies work cost-effectively with minimal staff. Supply chain snags can be quickly addressed or new strategies and processes can be easily incorporated so that there’s always an effective use of materials and work crews.
Predictive Analytics - Computer models of workflows help improve efficiency. Predictive analytics assess real-time data and suggest how workflows and productivity can be improved. These features also support invoice efficiency and can be very helpful when it comes to improving the accuracy of non-routine estimates.
Comprehensive Materials Management - Supply chain management is eased by an ERP since the system not only creates effective job schedules but assesses inventory to ensure that all tools and aircraft components needed are available to complete the repair.
Allows for continuous improvement - Many modern ERPs are flexible and can be adapted as new business processes and workflows are developed. For example, since business travel is not expected to return to pre-pandemic levels, the aerospace industry is beginning to consider producing fewer twin-aisle aircraft and more single-aisle planes capable of flying overseas, to offer an enhanced customer experience. Producing and maintaining planes like these will require a whole new set of business processes. New materials that are more resistant to corrosion, oxidation, and wear and have improved thermal properties are also being developed. A flexible ERP can accommodate new workflow processes industry changes like these would require.
Aviation maintenance is a high-regulated, complex industry. Controlling costs and budgets, complying with regulations, ensuring personnel safety, extending machine life, and maximizing efficiency are common objectives of an aviation ERP. Aerospace ERPs are tailored to meet these goals and have added specific industry functionality to improve workflows.
Aerospace ERPs add specific functionality to support aircraft maintenance and repair including:
Once you decide to invest in or upgrade to a modern MRO ERP, you’ll face many choices.
Most all on the market will help manage supply chain complexity and offer integration, automation, data analysis, and reporting traceability. They will differ in flexibility, customization ability, and cost. Some will have user-friendly dashboards. Are the dashboards customizable? Can the system scale as your business grows? Can it automate financial reports, purchase orders, and expense reports? If you need support for IoT, can the ERP offer it? What accounting and financial tasks does the system handle? Can it track inventory?
These are some of the questions you will want to ask as you evaluate the different aircraft maintenance software available today.
IFS has industry-specific solutions for the aerospace aftermarket industry and a proven track record when it comes to fleet management needs. IFS ERP bring full visibility into every stage of operation.
An IFS software suite comes loaded with aviation-specific tasks on a user-friendly platform. Best of all, IFS offers more configurable features at a slightly lower price than its competitors. If you are looking for informed decision-making, streamlined workflows, and an ease-of-use standpoint, IFS is a strong choice.
IFS Applications offer management support for four core processes: Service and Asset, Manufacturing, Project, and Supply Chain. Its software suite is rich with aviation-specific solutions and maintenance efficiencies designed to maximize revenue.
MROs choosing IFS Applications have experienced:
The modular nature of an IFS ERn.com/ultimate-buyers-guide-everything-youve-wanted-to-know-about-ifs-erp-softwareP allows companies to choose the functionality they need now with room to grow as their needs change. IFS’ modular design requires less time-consuming ERP customization. Enhanced part traceability and predictive maintenance capabilities are built into IFS systems. IFS software improves both long-range and line maintenance planning and offers collaborative, multi-department visibility.
Other vendors may offer specific industry tools, but most are built with rigid architecture and on-premise hardware requiring a long and expensive IT implementation. It's not cost-effective.
IFS Cloud-based SaaS solutions require minimal training and are affordable for small to mid-size MROs.
IFS Maintenix solutions can be put to work fairly quickly and do not need the long implementation time and high capital cost that legacy IT hardware, software, services, and support requires. IFS Maintenix offers two user-friendly solutions that support the regulatory and safety compliance that’s required by Part 145 and Part M repair stations. Plus, IFS Maintenix dashboard displays can be configured to be role-specific.
IFS offers two solutions for airframe MROs:
Both of these time-saving IFS tools support long-range and strategic planning. Collaboration is easier and results in strong, efficient plans that produce great yield. This software updates via the cloud, so companies avoid the additional expense of upgrading legacy technology.
While IFS develops feature-rich ERP aviation business management software, the ERP application will only be as effective as the consulting organization providing the implementation to your exact business needs and requirements. Let us help your business soar to new heights with IFS ERP.
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