A global online aviation spare parts and repair capabilities’ marketplace Locatory.com has announced signing a cooperation agreement with the prominent MRO provider VD Gulf.

Based on terms of this freshly inked agreement, VD Gulf will have access to all the innovative Locatory.com tools designed to facilitate smooth parts procurement transactions whilst maintaining comprehensive control of the associated safety, costs and optimum logistics. By utilizing the Locatory.com platform, the MRO will be able to safely procure and sell aircraft inventory in multiple international markets and thus expand its business development opportunities.

“With an increasing focus on establishing the solid presence in the Middle East, VD Gulf, serving both Western- and Russian- built aircraft for operators across numerous locations in Europe and Russia, had been looking for a trustworthy partner that can offer innovative IT solutions to facilitate its self-consistent expansion. The fact that the MRO decided to opt for our services is a clear indicator that our solutions truly stand out and we have deservingly earned our place in the top 3 list of providers worldwide,” says Dainius Meilunas, the CEO of Locatory.com.

Aside from parts and consumables supply services, VD Gulf offers line and base maintenance, component repair, component and sheet metal repair, aviation training, technical diagnostics and non-destructive testing, engineering support, certification and other services.

“Our primary interest is in creating the utmost added value without compromising on safety to our clients worldwide. This means that we must partner up with the service providers who can offer the most efficient solutions at the optimum price-quality point. Having thoroughly done our homework, we have decided that Locatory.com is the provider that can meet all of our exigent demands,” commented Mikhail Khoroshaev, VD Gulf Director-General.

Having recently introduced brand new shipping and secure payment services on the market, Locatory.com is anticipating a further increase in interest from airlines and MRO companies looking to optimize their business and enterprise resource planning processes.

About VD Gulf (UAE) FZC:

Established back in 1996, VD Gulf is a prominent independent MRO based near Sharjah International Airport, Sharjah, the UAE. High-quality services delivered by professional personnel are the key factors in the company’s long-standing success in the MRO market. The 22,000 sq. m. hangar facility commissioned in the first quarter of 2013 allows for concurrent accommodation of six narrow-body aircraft and two Boeing 747-size wide-body aircraft. The hangar features all the necessary equipment and docking, as well as a high-performance ventilation and air conditioning system. The facility is fully equipped with all the necessary tools to perform heavy base maintenance together with the required back shops. Holding approvals from EASA and other authorities for line and base maintenance services, VD Gulf services Boeing 747-400, 737 CL and 737NG as well as Airbus A320 Family aircraft.

VD Gulf is an approved Boeing 747 maintenance solutions provider servicing airlines and aircraft owners from Europe, Asia, and Africa.

Aircraft spare parts and repair capabilities marketplace Locatory.com is further expanding its presence in Asia by signing a contract with HNA Technic, MRO unit of the HNA Group – biggest private airline group in China. The Asian company will conduct its spare parts trade on behalf of 20+ airlines using Locatory.com.

HNA Technic will be listing over 20 000 commercial aircraft parts on the marketplace as well as purchasing spare parts through the system for airlines it represents including Hainan Airlines, Tianjin Airlines, Beijing Capital Airlines, Lucky Airlines etc. In total, over 300 aircraft will be supported via purchases and trading activities on Locatory.com.

“It is an important step for us on the road towards broader prominence among companies in Asia. The region is home to over 6000 aircraft and with the fleet expected to triple in following two decades, it is without a doubt, a market where we see the essential need for reliable spare parts supply chain,” explains Dainius Meilunas, the CEO of Locatory.com. “Current estimations predict China to be the fastest growing in the region in terms of passenger numbers and aircraft deliveries, thus, we are delighted to start our service expansion in Asia by engaging in a partnership with one of the leading companies in this thriving region.”

“We are looking forward to expanding our sources for AOG requests and inventory sales channels globally through the cooperation with Locatory.com,” commented the deal Ken Yuan, General Manager of Purchasing Department at HNA Technic.

Locatory.com is a member of the Avia Solutions Group family – an international, publicly traded aviation holding company with over 20 subsidiaries worldwide. With almost 100 offices and production stations across 5 continents and over 11 700 enthusiastic aviation professionals, Avia Solutions Group delivers prime aviation services to keep air transportation running smooth, safe, and steady.

As it stands today, Airbus and Boeing have a total of over 11 000 new aircraft in their backlogs. Inevitably, all of these machines will blend into the aging worldwide fleet, amounting to a colossal 40 000 aircraft in 2035, says Boeing. Nevertheless, as the numbers in this graph flourish, delays and flight cancellations are also on an upward trend, amounting to losses of an almost quarter of a million US dollars in the States alone. These costs generate not only from the part prices, maintenance works, and unsold tickets, but due to idleness as well – finding the right part takes time, or should it not?

Experts in the industry agree, that there’s a “bubble” in the market – more aircraft are coming into services than are being retired, thus, increasing pressure on the aftermarket. Being the life blood of this troublesome market, aircraft spare parts supply industry is destined to grow. In fact, ICF International predicts it will double in a decade – to $6.2 billion in 2023.

“A sector with such investments and demand seems like one to develop rapidly, says economics theory. However, in reality, companies working in the spare parts supply seem to live in the “dark ages”, still doing most of the processes manually, hence, losing valuable time and money along the way,” comments Dainius Meilunas, CEO of Locatory.com. “Major traders receive thousands of RFQs every single day and managers at the end of the line manually transfer the data to the ERP systems from the inbox. According to our survey, a person can process 100 of these enquiries a day (making 7 errors along the way), but it seems there’s a way to handle close to 120 times that amount.”

According to the recent study from Service Now, 44% of the workforce in the US alone agrees that using email and spreadsheets excessively lowers work productivity. Therefore, it is no wonder that even if you hire thousands of customer support managers to tackle the RFQs, you will still result in inefficient copy and paste work (if they last even a year doing such tasks). According to Locatory.com data, by converting highly skilled tasks into administrative ones, companies could increase the productivity of their customer support staff by 35%.

And the conversion would start with an integrated IT tool that would allow you to strip off the copying and pasting and just do the most important task to you and your client – picking out the necessary parts at the most cost-efficient price. As Dainius Meilunas explains, the tool would automatically extract the RFQs and import it to your ERP system, boosting work efficiency from 300% up to 1200%.

“As our tests show, using artificial intelligence, the tool could handle 12 000 enquiries a day. This would ensure the component can be located immediately and the AOG costs that can amount up to $150 000 per hour can be downsized,” explains the CEO of Locatory.com. “In addition to that, it would help to distribute the workforce more effectively, use employees’ skills to its full potential – a common challenge every component supply company comes across.”

Given that airline industry’s spending on aircraft spare parts is continuing to evolve and is currently estimated at around $5 billion per year, every player in the supply market is eyeing for a way to distinguish itself from the competition for the most-valued features – cost-effectiveness and reaction time. In a modern era, where no company can do without clever systems, it is imminent that the way to increase RFQ processing time will be found in IT, retiring copy+paste processes for good.