Airlines have dealt with several significant disruptions over the past few years. The Covid-19 lockdowns of the early 2020s nearly shuttered the global travel industry; however, this initial operation halt wasn’t the only major challenge airlines, and manufacturers have faced recently. The post-pandemic reignition of commercial flights kicked off a subsequent set of growing pains, exacerbated by attempts to ramp up operations and modernize IT infrastructure simultaneously. Furthermore, airlines are rapidly taking on digital transformation and feeling the impacts of OEM supply chain delays—coupled with increased passenger demand. Unfortunately, these compounding issues have generated operational hiccups. In response, many turn to used serviceable materials (USMs) to keep their fleet functional and rebuild customer loyalty.

Let’s examine the state of the OEM supply chain to understand why the USM market is beginning to take off.

The Rise of Used Serviceable Material (USM) In the Market

OEM supply chain issues primarily result from inflation driving up the cost of parts and a labor shortage tracing back to pandemic layoffs. The result is a reduction in supply and an exponential increase in labor and parts prices.

Unfortunately, there is no quick fix for this problem. Hiring initiatives are bumping up against a lack of skilled workers. Therefore, airlines and MROs need alternative solutions to retain their assets' value and maintain their operations' viability at a time when customer loyalty needs reaffirmation.

USM parts are rapidly becoming the foremost solution to the primary pain points within the parts supply chain in 2023. The market not only has the potential to fill the gaps created by reduced OEM output but also carries the following additional benefits:

Significant cost reduction (although prices still fluctuate based on market factors)
Increased availability, as a spike in aircraft retirement floods the market with new parts
Part traceability ensures all components are in airworthy condition

Navigating the Used Serviceable Material (USM) Market Using Smart Solutions

As the interest in USM materials spikes, it’s important to understand how to navigate the market effectively. There are several key elements to the used part market to be aware of—including a push toward digitization in the record-keeping process to streamline acquisition.

Streamline USM Transactions

The traditional acquisition process for USM parts comes with additional challenges. Transaction management has been slow to adapt to digital modes, making a manual process more prone to errors. Additionally, adherence to paper processes has resulted in a lack of pricing visibility and reduced traceability that can result in inadequate quality assurance and limits to effective and efficient communication. Finally, MROs have limited supplier options that can lead to increased delays, decreased availability, and a lack of competition.

But digital solutions like ProvenAir can help develop customer loyalty in the USM market, targeting and eliminating traditional problems in the sales and acquisition process.

For example, efficiency is critical when securing the best price, as high demand necessitates rapid action. Airlines that cannot get approval for a purchase because of paperwork issues may have to compete with aftermarket suppliers who will resell the part at a markup.

ProvenAir solves these issues by implementing algorithms to digitize outdated market processes. Their platform improves lines of communication between MROs and suppliers, increasing transparency with auditable transaction records. Plus, automated data entry reduces human error. These benefits are compounded by real-time visibility into transaction statuses and widened access to a comprehensive range of suppliers. Faster tracing times through ProvenAir ultimately allow buyers to secure better prices and add 9% to their profitability.

Improve Customer Loyalty

ProvenAir has generated high customer loyalty in the USM market, primarily because its digital platform saves both time and money. Trace analysis using traditional methods usually takes weeks—but ProvenAir’s solution cuts this time down to just hours. Furthermore, AI and optical character recognition technologies validate information for the most accurate back-to-birth trace analysis. Findings like inaccuracies, operational holes, or missing documentation are found and annotated in real-time.

These functions make it easier for customers to approve paperwork; they can also increase the value and competitiveness of LLP assets by offering comprehensive records packages, exceptions, MTS, and LLP sheets in a standardized format. Plus, customers can dynamically price assets and quickly check components to boost their competitiveness.

Secure the Best Prices for Parts

In the USM market, efficient paperwork processing is key to securing low prices for parts. Traditional paper-bound processes can no longer keep pace with competitive buyers implementing digital solutions to speed up the process. The seamless end-to-end experience offered by ProvenAir empowers buyers by connecting them with a broader pool of suppliers.

ProvenAir also provides a 'collaboration center' that allows buyers and suppliers to work on remediating issues with traceability jointly. With a digitized timeline, buyers can share their findings with suppliers, and suppliers can respond to problems without the need for spreadsheets and countless emails back and forth.

ProvenAir’s automated features can also manage a large portion of time-consuming administrative tasks, giving you more time to manage value-added activities. Back-to-birth tracing and extensive reporting protect the value of assets, while efficient processing and communication methods make buyers more competitive in the market.

Rewarding Customer Loyalty With ProvenAir

The Covid-19 pandemic accelerated digital transformation within the aviation industry. Many airlines and suppliers are still trying to update their processes and integrate new technologies; however, the USM marketplace is heating up quickly—so remaining competitive will require rapid adoption of advanced digital solutions.

ProvenAir is designed to help the aviation industry to extract more value from existing data. Digitizing documentation comes with significant advantages in terms of pricing, asset value retention, and access to high-demand parts. Airlines and suppliers can use ProvenAir to increase transaction efficiency at scale. At the same time, the latter can also utilize the platform to make the process easier for their customers and build loyalty.

Are you ready to expedite your digital transition? Reach out to ProvenAir today to get more value from the USM marketplace.

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Ensure Used Serviceable Material (USM) ROI: Streamline Your Transactions, Secure the Best Price, and Encourage Customer Loyalty