When discussing with Companies interested in our Trust Consignment Program, we have one recurrent question about how our parts management process works. It's important and at the same time interesting to know how a company operates before getting into business together.
First of all, our processes are part of our AS9120B quality system but, more important, they are integrated into an operating system, our HOS, the Horix Operating System. Our Operating System is a combination of automations that allow us to achieve the best economic result possible, which means a higher economic return for the parts Owner (the Consignor) who trusts our Program.
There’s only one step which cannot be fully automated, but still is the result of the Marketing Automation process: the negotiation between Horix and the parts Owner to sign the Consignment Agreement. As soon as the Consignment Agreement is finalized and the parts arrive at our warehouse, the Horix Operating System manages all processes.
As we have already explained in the Consignment Agreement Infographic, the first step is the inventory of each individual component and related document check, in order to verify components quantity and conditions (New, Serviceable, Overhauled, Unserviceable or As Removed).
This is an automated process and our staff strictly follows a specific operating instruction, even the simple naming (Description) of components must match the name given by the Manufacturer.
The second step is the labeling and stocking, following again a dedicated operating instruction to avoid possible mistakes and especially creates uniformity throughout the warehouse, regardless of the operator in charge.
Our warehouse management system has become a model, that we have presented and suggested to many MRO and aircraft operators, in order to have an organized aviation warehouse. We described it in our specific article How to organize an aviation spare parts warehouse, to make it available to anyone.
So far, these are relatively simple and repetitive processes; after that, the spare parts remarketing and selling take place. Our Operating System also deals with such a critical area, as the value assigned to each part will become the Consignor economic reward.
The evaluation of parts’ market price is not only related to the price given by Manufacturers for same items in New condition: it is more a combination of different factors, like (for example) the market availability of a similar part. At this time, we estimate the Fair Market Value (FMV) for the best possible return. We are one of the leading experts in the world in the spare parts inventories evaluation and asset appraisal.
When the inventory process ends, the list of materials is uploaded into our ERP system. Our ERP manages also pictures and paperwork, to be ready to give the needed details and evidences to potential customers at a glance.
Through use of APIs, our updated inventory list is automatically uploaded - every day - on the major parts sales platforms; we discussed this matter in this article: The right Marketplace for Aircraft Spare Parts.
The use of APIs further contributes to avoid possible mistakes: it is a fundamental implementation to ensure the HOS a smooth run.
Hundreds of RFQs are generated, every day. How to manage such a big number of requests?
The RFQs generated by the selling platforms are received directly into our ERP, whereas many customers prefer (or probably do not have an operating system in place) to send RFQs via email or by phone. Regardless of how we receive the requests, these are handled by a Sales manager (human!) who follows a precise instruction, and thanks to his experience, generates a quotation to the customer at the best possible price, based on the Fair Market Value.
Having a business Operating System does not mean to blindly rely on CRMs, ERPs and AI: at Horix, this means to integrate state-of-the-art IT tools with humans, to create a “perfect” machine.
The sales process is a fully automated practice that is managed by our ERP, packing and shipping are also part of the operating system: the type of packing and shipping are provided by specific operating instructions.
In most businesses, selling is just an act and not a process. Without a sales process in place, marketing and advertising are separated and isolated.
Not only, but a Sales process ensures standardization in bigger Sales Teams, where the risk is to have different behaviors with different Customers, with different pricing, practices, service levels and a distorted Company perception through the Customers.
You can’t have a standard sales process without an operating system managing the sales steps.
When the Consignor needs an up-to-date quarterly status of sales and remaining stock, just one click and the reports are ready for review.
Only with a solid business Operating System in place, a Company can efficiently satisfy all parties involved, and that is why our Horix Operating System is now an effective and efficient system.
If you have unused spare parts inventory that is no longer needed, or simply isn't moving fast enough, Horix is the answer: get more space, free up inventory and get cash from your surplus!
Horix Trust Consignment Program. Easy, Trusted Process.