Arajet Slashes Parts Sourcing Cycle and Achieves 9% Cost Savings with SkySelect
Like many growing airlines, Arajet faced procurement challenges that demanded automation and efficiency to maintain its low-cost model:
- Excessive Manual Overhead: Workflows were burdened by non-value-added steps, leading to high operational costs and slow response times.
- Long RFQ Lead Times: The traditional parts sourcing cycle from an RFQ to a final quotation was too lengthy, hindering operational agility and time-sensitive repairs.
- Limited Supplier Diversification: Difficulty in quickly vetting and engaging new, quality suppliers restricted sourcing options and negotiation power.
To transition from manual overhead to high-speed procurement, Arajet implemented SkySelect. This advanced solution was specifically deployed to automate quotation processes, streamline supplier engagement, and accelerate critical purchasing decisions.
SkySelect delivered immediate, scalable operational and financial improvements, positioning Arajet for sustainable growth:
- Fast Sourcing Cycle: The time from a Requisition being issued to ordering was dramatically reduced to just 1.4 days.
- Sustainable Cost Reduction: Arajet achieved an average savings of 9% on parts purchased. These savings have proven stable and sustainable even as purchasing volume continues to grow, demonstrating effective value capture.
- Engaged and Competitive Supplier Market: 85% of Requisitions were successful, meeting operations' needs by date, location, paperwork, price, and condition. Furthermore, 68% of Requisitions met all business requirements and received multiple quotations to meet compliance requirements, ensuring consistent price optimization and healthy competition. The platform facilitated a robust market response, with an 84% supplier response rate.
- Proven Efficiency Gains: The process is scaling successfully, allowing Arajet to publish an increasing volume of parts without any corresponding increase in administrative workload, validating the initial investment in automation.
”As a growing airline, efficiency and reliability are key for Arajet. SkySelect’s platform is helping us gain quicker access to multiple suppliers, streamline communications, and reduce manual effort in our procurement process. This allows our team to dedicate more time to strategic initiatives while the system handles routine tasks. We’re already experiencing the potential of this solution in generating stronger supplier collaboration, better visibility over our operations, savings, and greater control in the way we manage the technical procurement operation.”
With Procurement AI, you gain real-time visibility into your supply chain, providing a complete understanding of parts availability. This award-winning platform enables you to plan confidently by proactively adjusting stock levels based on market dynamics and unlocking significant working capital, all while effectively avoiding costly delays.