Supplier Engagement. Michael Uebber Senior Director External Accounting Lufthansa. Agenda

Transcription

1 Supplier Engagement Michael Uebber Senior Director External Accounting Lufthansa WFS 2017 Industry Meetings Agenda Why Supplier to Airline Invoicing (SAI)? How? Challenges Key learnings What is happening now? What we should do next? WFS 2017 Industry Meetings 2 1

2 Why Supplier to Airline Invoicing (SAI)? Leverage the SIS interline implementation Adopt invoicing standardization process Streamline invoice flow to our financial shared service center Contribute and participate to an industry initiative Maximize legal electronic invoicing, paperless process Green initiative WFS 2017 Industry Meetings 3 How? Use IS-XML as internal format to exchange information within our systems Design a strategy to leverage the automation opportunity by phases Business process owner is the internal champion Extend automation process to any supplier of a category regardless of the location Join early adopter group at the start of the initiative Align and federate around this initiative all airline of our group Ensure business owners understand the initiative and support the engagement Procurement Station Manager Focus on domestic or Hub airports where you can alone make the difference WFS 2017 Industry Meetings 4 2

3 Challenges Change process is taking time for suppliers Reconciliation automation needed update from a product concept to a charge code concept Suppliers may already have some electronic invoicing in place that could lead to more explanation of the details of the initiative One recipe does not work for all airports WFS 2017 Industry Meetings 5 Key learnings 1/3 Internal airline alignment, Finance, procurement, Business and station is key, all parties need to be aware understand and identify their own benefit and adhere to the process change You need a firm engagement at the appropriate level at the airport from the appropriate level at the airline to ensure the industry initiative is welcome Usage of the co signed letter to facilitate understanding that this is an industry initiative that the LH group lead in Germany, Austria and Switzerland Some airport used similar billing provider this help for reducing project cost and implementation time WFS 2017 Industry Meetings 6 3

4 Key learnings 2/3 You have several tools to support the suppliers engagement: Co signed letter Day to day business owner communication Existing periodical meeting with the supplier Airport operation user meetings One to one meeting Industry meetings like in airport supplier meeting at IATA GVA Local engagement meetings LH) IATA engagement support IATA SIS Ops support IATA web site WFS 2017 Industry Meetings 7 Key learnings 3/3 It takes time for an airport to decide then implement the change Start now so we will see results in late 2018 or even 2019 You need to understand what are the airport gains in adopting the new process to better sell it Don t underestimate the time and dedication required for the engagement Engagement is not limited to convincing the airport to adhere, provide your airline s support during testing and pilot This is a win-win initiative, airports get benefits out of it WFS 2017 Industry Meetings 8 4

5 What is happening now? LH group airlines engaged airports in Germany, Austria and Switzerland Engagement meetings took place on 13th of September with 4 major airports at LH FRA office Swiss engaged Zurich Airport SN Brussel engaged Brussels airport Austrian started to engage Vienna airport WFS 2017 Industry Meetings 9 What we should do next? Each airline should engage their home airport for the benefit of the industry Airlines should consider adding themselves to the co signed letter to make it a more powerful tool Airlines should prepare themselves to be ready to support invoice flow through SIS Airlines should define objectives to implement cost control process automation When the airport segment will be well engaged, other supplier segments will follow, such as ground handling. WFS 2017 Industry Meetings 10 5

6 Q&A WFS 2017 Industry Meetings 6