Value and Developments on EDI from an MRO's Perspective

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1 Value and Developments on EDI from an MRO's Perspective ATA ebusiness Forum 2014 Sven A. Heitsch Head of Strategy and Technology AG, Hamburg

2 Lufthansa Group The five business segments Passenger Transportation The Group s airlines rank among the world s leading carriers. Logistics Lufthansa Cargo One of the world's leading cargo carriers in international air traffic. Maintenance, Repair, Overhaul Leading provider of MRO services in the world's airline business. Catering LSG Sky Chefs World's largest provider of airline catering and integrated in-flight solutions. IT Services Lufthansa Systems One of the world s leading IT service providers for the airline and aviation industry. 2 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

3 Group An overview 731 customers worldwide aircraft under exclusive contracts engines under contract aircraft inspections per day* 30 subsidiaries and affiliates worldwide 4.0 billion Euros in revenue** employees worldwide** *includes subsidiaries and services by LCY in CGN and MUC ** AG Germany and 22 consolidated companies of Group in 2012; employees as of Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

4 Today s agenda s experiences with EDI The different IT landscapes of the stakeholders involved Ways of communication The value of standardized data 4 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

5 Different companies have different IT landscapes 5 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

6 In the middle of it all OEM Airline MRO 6 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

7 As an MRO how do we allow communication and collaboration with partners? 7 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

8 easy and efficient 8 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

9 Ways of communication Supplier Portal www direct and/or via facilitators, e. g. 9 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

10 Electronic data interfaces (EDI) for highest transparency and minimal manual effort 10 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

11 Key is common understanding of data 11 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

12 EDI Implementations (Selected Scenarios) Customer/ Supplier LHT Order Administration (buyer and supplier side) Pool Access Repair Administration (buyer and supplier side) Part Certification Data Tear Down and Workshop Report Data Warranty Administration Reliability Data Interchange 12 Tailored MRO IT-solutions for airline customers Sven A. Heitsch Date Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

13 Nine steps of Inhouse Warranty Administration Customer 1. Removal, time of notice 2. Recognition of a potential warranty case (e.g. part fails within a warranty frame) 3. Technically Investigation (Customers side) 4. Collect data and rise a IHW Claim Close claim 9. Evaluation of data (e.g. for accounting reasons, suppliers rating, ) OEM Receiving of IHW Claim 6. OEM s Investigation 7. Send a credit note to customer 8. Close claim 9. Evaluation of data (e.g. for accounting reasons, customers rating, ) 13

14 Claim Administration Yesterday Feed internal System/Data Base Feed external Data base/homep age Claim: Common mail/fax Feed internal System/Data Base 14

15 Claim Administration Today Joint project of Airbus, Rockwell Collins, Win - Win Machine-Machine (via web) No double typing Same data both sides Higher rate of automation Quick claim transfer Claim Receiving Acknowledgement State of the Art medium Shorter TAT More time for investigation/customer 15

16 Key benefits of shared data (e. g. via EDI solutions) Possibility to easily share and analyze data Maximized speed and data quality Minimized user training and manual effort Seamless integration between IT systems Industry proven Secure and reliable messaging 16 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

17 No matter whom you are talking to 17 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

18 standardized data is the key 18 Copyright 2013 AG. All rights reserved. Subject to restrictions and disclaimer on last page.

19 One more thing As (standardized) data is the fuel for easy and efficient communication with all partners in the industry, please join - implementing EDI projects - keeping the standards up-to-date - extend the standards to new areas

20 Thank you for your attention. Copyright 2013 AG. All rights reserved. The information contained in this presentation is proprietary to AG and is disclosed in confidence. The presentation and the information contained herein shall be kept strictly confidential and shall not be used, disclosed to others or reproduced without the express written consent of AG. Nothing contained in this publication shall constitute any warranty, guarantee or liability for AG, its subsidiaries and affiliates but is for information purposes only. Accordingly, AG its subsidiaries and affiliates neither expressly nor conclusively accept responsibility or liability for the actuality, accuracy and completeness of the statements and information contained in this publication.

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