IATA SIS KICK OFF MEETING

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1 IATA SIS KICK OFF MEETING October 13 th, 2013 Zilvinas Sadauskas, CEO, Locatory.com

2 Agenda Short introduction of Locatory.com Real life examples & issues which arise Time & Human factor Benefits of electronic invoicing Initiative

3 Short introduction of Locatory.com Locatory.com is an aviation inventory trade platform Part of Avia Solutions Group, the fastest growing aviation group in the Central and Eastern Europe Concrete mission: unite the aviation aftermarket and build a common trading platform Continuous innovation & integration Innovative products & interfaces IATA for e-invoicing Integrations with ERPs Integration with logistics providers (future)

4 Figures & clients 2 billion parts database 700,000 repair capabilities Meeting participants already getting benefits

5 Real life examples & issues which arise

6 Mid sized MRO / Supplier invoices sent annum 5 copies for a single invoice = pages ~20% sent in paper letters Postal costs ~3 euro Total costs ~ euro 5 years ~ euro

7 Why companies still use paper invoicing? Legal aspects You cannot do customs clearance in Russia if no paper invoice attached Only VAT invoices can be paperless in Lithuania Lack of skills & motivation There are still companies which are reluctant to modern technology Approx. 5% of all requests for quote are still being sent by fax in USA People are not always willing to learn and change their behavior Reliability issues We live in a world of scam Companies are very cautious about their money IATA fraud example SPA Estonia fraud example

8 Lost in delivery & approval process Finding a path to the correct person You get an invoice without a reference? What do you do? Communication & data exchange problems Mid & big sized companies have complicated approval processes Honeywell example Parker Aerospace example Waiting for decision makers & growing piles of invoices Papers lost in piles Physically delivering papers to decision makers Overwhelmed accountants

9 Time & Human factor / The Pandora s box

10 Time is critical Several days Invoice is made digitally Sent via post Invoice is put into internal systems Converted from digital to analog Converted from analog to digital Several seconds Invoice is made digitally Invoice is put into internal systems

11 Human factor everywhere Invoice is made digitally Human factor Sent via post 99,8% delivery Put into internal systems Human factor Converted from digital to analog Human factor Converted from analog to digital Human factor

12 Human factor: example 1 Process Invoice is lost by responsible manager Accounting dep. did not receive the invoice Therefore did not settle the payment on time Credit line frozen by supplier Question What if you have an AOG next time?

13 Human factor: example 2 Process Warehouse manager receives an invoice with 1000 lines He puts all the data manually to the internal system Checks if invoice matches the PO Checks if goods which are being shipped match the invoice Provides invoice to accounting dep. Question What if the manager made a mistake by typing things manually? What if the invoice really had a mistake?

14 Benefits of electronic invoicing

15 Benefits of electronic invoicing Reduce human factor to minimum No need to make digital transformation to analog and vice versa Save time Transportation made instantly Time saved by avoiding human factor mistakes Save money Save on paper and transportation costs Save by making less mistakes

16 Initiative Locatory.com & IATA SIS signed an agreement for integration this year Delivering IATA s solution to the end users in a convenient way

17 Benefits from the initiative Locatory Login Send RFQ Issue PO Search Receive Quote IATA SIS Login Put data Issue invoice Create new invoice draft Add receiver Locatory integrated with IATA SIS Search Receive Quote Issue invoice Send RFQ Issue PO

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