Purchasing & Logistics

4 Common Mistakes All Material Buyers Make

4 Common Mistakes All Material Buyers Make

Have you ever made a bad buying decision? Of course your have. You’re human. It’s frustrating, stressful and a waste of time, money and resources. You might not even know you’re making mistakes. You think everything is working perfectly. But secretly, everything's a mess. You’ve created a “bad” habit and habits are hard to breakHere’s a list of the mistakes and what you can do about them.

7 Things That Annoy Aviation Buyers & What To Do About Them

7 Things That Annoy Aviation Buyers & What To Do About Them

Buying is hard. You deal with constant demands: maintenance, coworkers, the unknown. Now throw in an AOG and chaos ensues. Despite everything you must do, you still have babysit your suppliers. There are things your supplier does that annoys you. They're human. Let's identify these top traits and find ways to correct them... 

Why It’s SO Painful Dealing With Freight

Why It’s SO Painful Dealing With Freight

It's no secret, dealing with freight is painful! Real painful. Getting your aircraft material delivered is the easy part. Most of the time. But having a great experience at the same time, near impossible. 

How To Accept Problems, Then Solve Them

In the fast paced, non-stop world of aviation, problems happen and they happen often.  Most people look at problems as a bad thing. They're afraid of them. It controls their every move. The more they're afraid of the problems, the bigger, more complex the problems will become.

This is the very reason we've adopted a core value here at Skylink, "Accept Problems, Then Solve Them." Sitting at our desk worrying about a problem does nothing. Getting to the root of the issue and solving it does. There are a number of ways we tackle problems.

Listening

We're active listeners. How To Accept Problems, Then Solve Them

If it's a client showing concern, we listen. If it's a team member who has a problem, we listen. If it's a supply chain partner explaining a delay, we listen.

By listening, we hear the other person and can effectively translate what they are saying into solutions.

The art of listening is the first step to proper communication and problem solving.

If we're not listening, then we're not solving. And if we're not solving, we're not practicing what we preach.

Advice process

This concept isn't new for us but the methodology and practice will be a reoccurring topic in our daily communication.

We are a self-managed organization giving people autonomy to make decisions as they see fit. The only requirement when making a decision is to seek advice from the people who will be directly affected and people who have knowledge in the subject.

The advice process isn't the "manager" making the final decisions but instead it's the collective group working together for the best viable decision. The person leading the team then formulates the responses to output the right solution.

5 Whys

The simple question "why" is a great concept to actively engage a problem.

When a problem comes up at Skylink, we tackle the issue by asking "why."

Stubborn and recurrent problems are often symptoms of deeper issues. A "quick fix" may seem convenient, but it's really just a temporary solution and it may solve only part of the problem.

To solve it properly, you need to drill down through the symptoms to the underlying cause.

The 5 Whys is a simple, practical tool that is very easy to use. When a problem arises, simply keep asking the question "why" until you reach the underlying source of the problem, and until a robust counter-measure becomes apparent.

The 5 Whys uses "counter-measures," rather than solutions. A counter-measure is an action or set of actions that seeks to prevent the problem arising again, while a solution just seeks to deal with the situation. As such, counter-measures are more robust, and are more likely to prevent the problem from recurring.

Each time you ask "why," look for an answer that is grounded, in fact: it must be an account of things that have actually happened – not events that might have happened. This prevents the 5 Whys becoming just a process of deductive reasoning, which can generate a number of possible causes and, sometimes, create more confusion.

Keep asking "why" until you feel confident that you have identified the root cause and can go no further. At this point, an appropriate counter-measure should become evident."

Contingencies

We make hundreds of decisions every day.  One of the ways we expedite problem solving is by having contingencies in place at every level. Or at least know the worst case scenario.

A good example is in repairs. If we have a repair in process for a pooling rotable and the units goes BER, what's our backup? If we already have the contingency in place when the units goes BER then we've expedited the resolution process.

Contingencies are crucial throughout our entire operation. 

It's very important that everyone on the Skylink team knows and understands how to accept problems and solve them. We live and breathe this and when were all in sync, problems are a mere speed bump into the flow of the Skylink way.

Are you afraid of problems? Do you encounter problems on a daily basis? Fill out the form below and let's chat about how to get you to overcome these obstacles.

 

The Cost Myth Debunked: Cheap Aircraft Parts Vs. Total Value Creation

Have you ever bought a cheap aircraft part and regretted it? Of course you have. Cheap prices are attractive. They look good, smell like savings and sound like a “deal."

The lower you drive individual costs the better off you’ll be, right?

Not quite...

Cheap Aircraft Parts vs. Total Value Creation

Cheap Aircraft Parts vs. Total Value Creation

Our supply chain team felt the pain of this just recently. They were huddling to bring in a new component to replenish a specific pooling product line. We’ve had trouble in the past with this supplier but since they met our QA standards we figured we would give them another try.

We sent the $3,000 PO to the supplier. They replied and said the unit is SV not OH, despite the email string saying otherwise. We told him that’s not we agreed upon and he replied:

“I’ll have to pass on this one…” Wait, what! He’ll have to pass?

We replied and demanded him to honor his quote and he stated “This is aviation bro, it happens.”

Yes, the term “bro” was used. I can’t make this stuff up. Can you believe it, this is aviation? Not Skylink’s type of aviation (Never Forget Your Wings).

This was our fault. We decided to procure based on price instead of total value. We’re still searching for this item and will have to absorb a NE unit at 4x the cost. We would have made other decisions from the beginning if we didn’t rely on this “cheap” price. Our mistake and we now pay.

Driving down cost is a smart decision but anything less than fair market value get’s you into sticky situations.

What you can expect from “cheap” aircraft parts

The definition of cheap is "costing very little; relatively low in price; inexpensive; low-cost in comparison to market."

Now, I’m sure you knew this but with low and cheap pricing you bargain with opportunity costs. You’re giving up something else in return for cheap pricing.

From experience, these are common things you gamble with:

  • Reliability

  • Quality

  • Service

If cheap pricing is the way you want to go then you may see a higher occurrence of vendor problems. This means more cancellations, delays and poor customer service.

Sometimes it’s worth the gamble, but most often it’s not.

What total value is and isn't

The definition of value is "relative worth, merit, or importance."

Total value isn’t you spending 2x the market price on a particular aircraft part or using a specific supply chain partner. Total value is the return you get in addition to the price you pay for a specific product.  This is calculated in many different ways but a great example is when your aircraft is undergoing a maintenance check.

When your aircraft is undergoing a maintenance check, you need to get parts to the MRO at a designated time otherwise you’ll be penalized, or worse, the aircraft will be delayed. Let’s say with every delay you’re charged $500. You could buy a cheap component for $2,500 or a fair market component for $3,500.

You risk cancellation and delays with the cheap component.

You’ll then have to resolve the problem and expedite shipping, spending more of your precious time. When it’s all over with the “cheap” aircraft parts cost will add up well over $3,500 when you consider your time and expedited shipping and even late delivery penalization costs.

Most of the time, it’s not worth the headache alone. When you go with total value upfront, you save yourself the headache after.

Remember, this doesn’t mean I recommend you buy expensive inflated components. What this means is look at everything, not just the “cheap” cost itself.

Look at reliability and service as the core benchmark to determine appropriate actions.

Have you been caught in a “cheap” price predicament? Are you looking for total value with fair pricing? Fill out the form below and let us prove to you that were not “cheap” we’re valuable.

Why No One Is Listening To You

No-One-Listening.png

How does it feel, being ignored? You pick up the phone and get voicemail. You email and get no reply back. You text only to be ignored. In the world of fast paced jets, communication moves at the speed of idle dirt. Dealing with aircraft maintenance supply chain partners is a chore.

No One ListeningIt's like babysitting a child that doesn't listen.

Nowadays, we have social communication mediums like Facebook, Twitter, Whatsapp, and the ancient phone, text and email. Yet, listening and communication skills are at an all time low. It's a mind numbing epidemic.

So why are people not listening to you? Why does it seem like nobody cares?

It's Not A You Problem, It's a Who Problem

When supply chain partners don't actively engage you in a conversation, it's not a you problem, it's a who problem.

It's very common to have a need and to have to pull teeth to work through a problem and find a solution. The person you should be relying on most is out to lunch with their phone turned off. They say "I-care-a-lot-about-you" but actions speak louder than words.

I'll give you a quick checklist to identify the who problem:

  • They don't reply to your email for hours
  • You don't have a cell phone number for them
  • You leave voicemails and they never return your call
  • You leave voicemails and it takes days to get a call back
  • They don't accept your social media requests so you can build trust a rapport with them
  • They are hard to find on the internet
  • You have no way to text them
  • They're never on Skype
  • They don't have Whatsapp
  • You can't call them after hours or on the weekends
  • Every time you talk to them it always sounds like they have something more important to do

This is why we have 24/7 dedicated Account Managers.

You can contact them personally any time you want. People who we can create the greatest value for and who benefits from our solutions has entire access to their Account Manager. It's about creating a "WOW" experience.

When you're not being heard and you identify it's a who problem, look at your options and figure out another way.

The Downfall of Demands

Another big issue it the constant pressure of demands, it could be you doing the demanding or the other party.

Constant demands will have the other party running. Communicating and listening together is entirely different.

Here's a great example. We had a new customer contact us and every time we engaged them in a solution for their rotable RFQ needs, they would demand a "cheaper" price. It was never good enough and pretty soon we became disengaged. With the prices we were quoting they got 100% logistical support, 24/7 access to a dedicated Account Manager and unparalleled service.

They know that they can trust us and we do as we say. There's no having to babysit us. In this particular situation it was a matter of $100 that they demanded we come down to. It was a constant demand of lowering prices and a constant demand of shipping things faster than agreed upon.

Every time we worked with this client it was a demand. It was never collaborative.

Are demands sometime necessary? Yes, of course, but doing more demanding and less communication and collaborating gets most people nowhere.

Listening is much more productive than talking and it's a critical flaw in a lot of supply chain partners communication style. Know the who and watch out for the constant demands.

Do you feel like your constantly ignored? Do your supply chain partners have a listening problem? Well fear no more my friend. Fill out the form below and let's show you how good listening skills is done.

How To End The Day After A Stressful AOG

Stress is common and a big part of your aviation life. It grabs you tight, suffocating your every move. how To End The Day After A Stressful AOG

Most days are made up of you scrambling to resolve the next urgent issue. One after the other. Urgent and more urgent.Your aircraft blew 3 tires, debris cracked your windshield, and your toilet valve jammed. You have the pressure of resolving these issues or being blamed for the downed aircraft. The stress beats you up, day in and day out.

Wouldn't it be great if you could accepts these stressful times and still be able to relax and prepare for the next day?

It’s possible….

Never bring chronic stress home

Bringing stress home is inevitable, it happens. I do it all the time. It’s very difficult to divide the two and no matter how much you try to escape it, it will follow you. Stress in its most basic form is healthy. On the other hand chronic stress kills you. You make bad decisions and it makes you anxious, tired, and wore out.

Control your chronic stress. It’s the fastest way for you to become unhealthy, tired, and unmotivated. It’s even a faster way to upset your home life.

Watch the sunset

Getting away from stressful events is key to giving your mind a break. A well deserved break. A great way to do this is to go somewhere quiet and watch the sunset. There’s something tranquil and amazing about it.

While you watch it set don’t worry about the next AOG, or what vendor really makes your life difficult, just be present, you and the sun. As the sun sets for one more day think about what you’re grateful for.

Spend an hour in nature

This is one of my favorites. Sit outdoors, breathe the fresh air, and surround yourself with green trees. If you’re in a big city, get on the roof top.  When you get back to nature it has a natural calming effect. It gives you the ability to clear your head and be present in the moment. Something that can be lost in the 24/7 aviation hustle and bustle.

Exercise, meditate or do yoga

Yoga and exercise get’s oxygen flowing through your body. When you’re stressed, you’ll need more oxygen. You don’t have to be the next bodybuilder, just do a quick exercise (even in your office) and get the blood flowing. Don’t over complicate it. Just get moving.

It’s not quite exercise but meditating helps you to eliminate the chatter in your head. It makes you be present and quiet the noise with everything else you have going on. Do a quick 5 minute meditation in your office and it’ll do wonders on your stress.

Take an epsom salt bath with lavender

This may sound funny to you but it really works. Fill your bathtub up with hot water and pour in a cup of epsom salt. Then add 1 - 2 drops of lavender oil and immerse yourself in tranquility for 30 minutes. The epsom salt will help relieve stiff and sore muscles while the lavender oil helps you relax.

Turn the lights down, listen to music, and enjoy the company of others

Once the sun sets turn down your home's lights. I prefer candlelight as it helps prepare my mind for bed. Blue light at night suppresses the secretion of melatonin which then affects your quality of sleep. Reduce the light overload and chill out with dim lights and music, and get together with the people you love most.

Aviation is stressful, there’s no doubt about it. You feel overwhelmed, high pressure, and high demand. The best thing you can do for yourself is de-stress and unwind after a long day. This will only help you be more awesome the next day.

P.S. At Skylink, it’s our mission to take the stress out of aviation. We have several programs to do just that.  Fill out the form below and speak to the best Account Manager in the industry.

How Aviation Affects Your Home Life & How To Manage It

Commercial aviation! An industry that never sleeps and when it doesn't sleep, neither do you. It’s a constant sleep with one eye open moment. How Aviation Affects Your Home Life & How To Manage It

AOGs, failed components, vendor issues, you name it, you deal with it. It’s an ever revolving cycle of important and urgent.

The constant demand of aviation inevitably trickles into your personal life. Your life at home. Your life on the weekend. 24 hours, 365 days a year.

Yet we LOVE this industry. We are able to hug a loved one living 6,000mi away in under 24 hours. Such a marvel that's unachievable without amazing, hard working people to support it.

As amazing as this feat is, it’s stressful trying to keep up with the high, 24/7 demands. A stress that inevitably affects your life at home. Or maybe you're even asking, what life at home?

That leads me to a perfect story. In Q1 we had several airline partners that got stationed in another country to oversee their aircraft C checks. One in Jordan, the other in China. These projects took them away from home, for 45 - 60 days. During this time, we stayed available 24/7 to help support them. Even our VP had to deal with certain activities late on weekends and during his business travels abroad, not to mention the daily late night calls. Everybody involved worked 24/7 with the pressure felt every day. But who more than our partners who got pulled from their families and stationed in another country for months.

But that’s what it takes and that’s why we love it.

The world of commercial aviation is growing. It won’t stop. Well, until we can teleport to another country or a drone picks us up and drops us off. But for now, airlines are the key to global transcendence.

Aviation affects your home life and always will

Since you work in aviation you bring your work home. No need to guess, I know it. Your cell phone is tied to your hip and the calls and emails never stop.

The 5 top things I hear from my airline peers on how aviation affects their lives are:

  1. AOGs keep them awake at night. Losing sleep or being woke up in the middle of the night is common.
  2. Unpredictability keeps them on edge.
  3. International support makes them have to manage different time zones.
  4. Constant pressure of prices, lead times, and quality.
  5. They often feel they have to babysit support partners.

You love this industry and so do I. Managing your home life and aviation is possible. You’ll never stop the collisions of work and home, but you definitely can manage the stress that goes along with it.

Manage your home life

One of the biggest triggers on why aviation affects your home life is how you manage stress. The second trigger is that you’re relying on the wrong people to support you. The third trigger is the strategies you currently use are not supporting you efficiently enough.

Stress isn’t a bad thing. It keeps you on your toes and agile. It’s the chronic stress that you bring home that affects your life the most. It reduces your energy, hurts your brain's performance, and makes you miserable. Nothing to brag about. We’ve talked about stress in detail before. The first step you need to take is by getting your stress under control. It’ll help you make better decisions and give you the energy you need to perform in this never idle industry.

Who do you surround yourself with? Are your partners after your money or there to create valuable solutions? Answering these questions is important. The people you rely on the most  may not be the best for your situation. They could even add more stress and chaos to your life than you need. Sit back in your chair and think about the people you work with daily. Colleagues, suppliers, and MROs. Is there people who create more stress for you than others? Their job is to help create solutions. If you find they create more problems, figure out a way to replace them and surround yourself with people who create “wow” experiences.

The strategy trigger is the most difficult one as it relies on big change. A good example is from one of our airline partners. They fly at high altitude and approach landing over a mountain. This puts constant demand on their aircraft so AOGs are frequent. Their past strategy was buying AOG components as needed.  They relied on their leasing partner to provide the spares, yet 2 countries away they only took their money and provided no solution to reduce their AOGs. This didn’t help anyone's stress levels. A better solution we proposed was through our pooling strategy. We would guarantee stock for AOG, no-go components 24/7. They no longer had to “wait” for AOG support. They also didn’t have to tie up cash into supporting their own costly inventory. A simple win/win that nearly eliminated the primary stresses because a trusted partner  understood them and the value they needed. Look into your own strategy and think of the problems you currently have. Can they be resolved another way? Can you rely on a trusted partner to help you achieve this?

These are all very important questions to answer.

Aviation will continue to affect your home life, but it’s how you manage the two that will create the happiness you so well deserve.

Reduce your stress, surround yourself with good people, and take on value based solutions.

P.S. We understand the value you deserve which is why we are on a mission to create “WOW” experiences. The programs we offer here are to make your life easier. Fill out the form below and one of our top notch team members will be in touch immediately.

Your $500 Aircraft Component Shipping Mistake Costs You More Than You Think

You experience $500 shipping mistakes every day. Your $500 Aircraft Component Shipping Mistake Costs You More Than You Think

It’s not a large sum of money but when you multiply $500 by the amount of shipments you have, WOW! The amount of money wasted on shipping is crazy. Ludicrous I tell you.

Whether it’s from Singapore, Rio De Janeiro, Amman, or London, when you order 20 parts from 20 different companies you pay 20 different freight bills. It’s as simple as that, no if’s, and’s, or but’s about it. Pure logic. Pure expense. Pure waste.

There’s no revolutionary formula and my future isn’t as a math teacher but I do know we often forget about the true costs of our decisions.

Think about it.

At a minimum you’ll spend $100 for each shipment. But let’s dig a little deeper and say the maximum you would spend is $500. Not a huge freight bill. The problems occur with volume. It’s the power of compounding. If you order 20 parts from 20 different sources you’re spending $2,000 - $10,000 in freight bills.

Expensive indeed! The decisions you make about shipping directly affect your operating income. Most decisions are made in a reactive state, but the true value is through a proactive solution.

Let’s dig into that.

Spending 20X more than you have to on shipping

The middle of your supply chain is complicated. With aircraft component partners located all over the world and your aircraft MRO 2,000km north or south, your supply chain is worldwide. There’s a lot of variables between the aircraft components you need and the aircraft they must be installed on.

There’s also many decisions to be made. Who do I procure from? Are they a reliable and trusted partner? Do I need 1 part or 50? How should I ship these? Should I consolidate? When will I need these rotables and consumables at my maintenance check?

The questions don’t stop. In order for you to reduce your operating expenditure, you have to think about strategic ways to cut unnecessary costs.

Yes, you could beat up your aircraft component supplier on price, but over time that only gets you cheap parts, cheap service, and more problems.

The true value comes from the proactive solutions I keep mentioning. One of these is being more thoughtful of your shipping costs.

Shipping costs are eating away at your operating budget

This week we had a very good client get into a frenzy about a $5,000 shipping charge. She was shipping 1,200 kilos through a terrible freight forwarder. Remember I mentioned cheap service? I mean, these people were beyond ridiculous. And they were sneaky, which is even worse.One of the items was  HAZMAT. This silly freight forwarder was charging the entire 1,200 kilos as HAZMAT and it affected the freight bill by $1,000. So our client  was essentially paying $1,000 more than she had to.

The moral of the story is, the decisions you make on how you ship affects everything.

In this story it’s about trusting your freight forwarder partner to not price gouge you after they quote you a low freight cost. In other scenarios it’s about making a conscious effort to consolidate and save.

You’ll go from shipping 20 items from 20 different people with 20 different freight invoices, to 20 items from 1 person with 1 freight invoice. It’s streamlined and focused. It get’s even better if you deeply trust and respect this one person. Trust goes a long way.

Once you decide to $ave By Consolidating and focus on an efficient procurement strategy, you’ll begin to save thousands of dollars on wasted freight costs.

P.S. Our Aircraft Maintenance Program is designed by experts in creating efficient solutions for long list requirements. We utilize our $ave By Consolidating process to provide you with rotables, expendables, and consumables, in an efficient and cost effective manner. We also utilize our logistics program to streamline the entire supply chain to you. Interested? Fill out the form below.

6 Essentials For Every HAZMAT Shipment

What’s worse than an AOG? I’ll tell you what.

aircraft-consumables

It’s dealing with an aircraft parts supplier who has no idea what to do. Even if they specialize in consumable distribution. Scary.

Yes, they might be certified (make sure they are) to ship HAZMAT, but are they competent enough to work with you?

This may sound a little harsh, but it’s true.

We’ve all dealt with our fair share of clowns. Ouch! [CLICK TO TWEET]

They cost you more time and money than you and I care to admit.

A few things to be aware of when purchasing aircraft HAZMAT consumables

Speaking of clown (the amazing, superstar kind), Colin our Skylink TV personality is going to share some tips with you.

These key essentials to every HAZMAT shipment could be the thing that causes your order to be delayed.

Or even hit the AOG status!

When you purchase HAZMAT material, make sure your partner knows a thing or two about shipping consumables.

As Colin said, the biggest thing to be aware of is who you're working with.

If you can’t reach your account manager 24/7 and they aren't there to resolve any problems that arise...move on.

Have you had problems with HAZMAT shipments? Are you in dire need of a HAZMAT logistical overhaul? Comment below.