In a recent blog, we touched upon some of the key operational challenges for aviation fuel suppliers.
One of those challenges was contract management. Keeping track of the daily changes in uplift and cost, monitoring airlines’ credit limits – contract management tasks likes these are often largely manual and therefore very time-consuming for fuel suppliers.
However, it is possible to cut out a lot of this laborious admin and save yourself time and money in the process. We know a mid-sized aviation fuel supplier that’s done just that. Here’s their story… (The client’s name has been left out for commercial reasons)
When they approached us, this fuel supplier had a number of issues with their fuel management process:
- There was no centralized data for customers, prices or fuel tickets. The supplier’s affiliates held and maintained their own data so there were inconsistencies and they were duplicating effort.
- Multiple prices could apply to the same customer depending on the location but the supplier had no easy way to apply and record this.
- Their contract management and invoicing stages were largely manual so were very time consuming and labor-intensive.
All of these problems hampered the supplier’s ability to manage their contracts properly. They struggled to calculate costs quickly and accurately which led to some invoices being delayed or incorrect.
We worked with this mid-sized fuel supplier to improve their fuel management process, particularly those aspects associated with contract management.
We did this by implementing supplier.One, our software solution designed specifically for aviation fuel suppliers, which has four key principles at its core:
- Centralized data
- Data standards
We think of these as the four key pillars of effective aviation fuel management.
So, what did this solution actually do?
supplier.One enabled the company to centralize critical fuel data into one repository, including fuel ticket data, customer details, contract terms and prices. This means that both the supplier and their affiliates now have access to one up-to-date source of information.
With centralized data, the system was now able to automate several key tasks, including:
- Importing fuel tickets using IATA data standards
- Gathering key market data including Platts, Morningstar, Bloomberg and ECB exchange rates
- Calculating the cost of uplifted fuel
- Generating electronic invoices using IATA data standards
- Submitting these invoices to the customer via FTP.
By automating these processes, the supplier was able to reduce routine admin and errors, complete tasks more quickly, and generally work more efficiently.
supplier.One also now helps the company to monitor the credit held by each airline customer, alerting them when there is a risk of a carrier exceeding their limit. Thanks to the software’s built-in workflows, they can also better control key processes (in operation, pricing, invoicing) and correct mistakes earlier.
In addition, thanks to the granularity of the software, which has been built specifically for the needs of the aviation industry, the supplier can now accurately apply pricing per customer per location.
Thanks to our solution and the features outlined above, this mid-sized supplier can now:
- Monitor their aviation contracts more easily
- Raise more accurate invoices
- Invoice more quickly
- Better control cashflow and minimize risk
- Avoid duplication of effort.
As a result, they have saved time and money.