Decision Support

The Decision Support feature in MRO SmartHub is designed to streamline decision-making processes by focusing on specific use-cases, simplifying interfaces, and displaying only relevant KPIs and information.

Current enhancements to the Evaluator search include a less expert-centric view and more targeted applications. At present, the only implemented use-case is the “Price Validation”, with plans to introduce additional functionalities soon.

Price validation

Potential use-cases for the price validation feature are the data-based validation of supplier quotes or the evaluation of the current market and pricing situation to determine an appropriate sales prices for a part.

Input parameters

In the decision support feature’s “Price Validation” interface, users must input three parameters: part number, material condition, and the price they wish to validate. After entering these details, the validation process is initiated by either pressing the “Enter” key or clicking the “Validate Price” button.

Input form for price validation parameters

Input form for price validation parameters

The system uses specified parameters like part number, condition, and input price, along with FMV in the given condition and current market data, to determine the validity of the price. This tool does not consider time-sensitive data, specific serial information, individual demand circumstances, or supplier rankings in its evaluation process.

Validation results

The results screen provides comprehensive details about the part, the other validation input parameters, and the validation results. The methodology applied to validate the results follows the methodology used in other modules of the IATA MRO SmartHub.

Validation results for a particular part number

Validation results for a particular part number

A price validation with the FMV is only done in cases where an applicable FMV is calculated by MRO SmartHub for the given part number and condition combination and if the FMV stage is lower than 5. This methodology again follows the methodology applied for the company benchmark. To ensure a certain level of validity and consistency, for this only part numbers with FMV in stages 1 to 4 are included.

Price Indication

This section provides a detailed analysis of your entered part price compared to the fair market value (FMV). The applied methodology follows the company benchmark logic. It shows:

  • Traffic Light Indication: Summary of the market price overview, helping you understand how your price compares to the distribution of available transaction data.

  • Your Price: The price you have entered for the part in the entered condition.

  • FMV: The Fair Market Value for the part in the same condition, helping you understand how your price compares to current market standards.

  • Your Achievable Savings: Indicates the achievable savings if your price is lower than the FMV. The entered price for this part in this condition is better than the market reference.

  • Your Additional Costs: Indicates the potential savings you could achieve when orientating at the FMV for your pricing strategy.

Note

In some cases, the price indication section will not be shown with full details as no applicable FMV for the given part number and condition combination is available. E.g., for consumables the IATA MRO SmartHub calculates only FMVs in NE and NS condition. If now the entered condition is worse than NS, no FMV can be shown.

Market Price Overview

This graph displays the distribution of market prices for the entered part number using a quantile calculation to reflect the different price categories: below market, within market, and above market.

  • Green Area: Represents prices below the average market level, where the upper limit is defined by the 10%-quantile of prices derived from available transaction data.

  • Red Area: Represents prices above the average market level, where the lower limit is defined by the 90%-quantile of prices derived from available transaction data.

  • Grey Area: Represents prices within the average market level.

  • Blue Line: Indicates your entered price.

  • Black Line: Shows the average market price over the full price data.

  • Yellow Line: Displays the average market price for prices associated with events occurring within the last 6 months. Only displayed if there were events within the last 6 months.

  • Light Yellow Line: Displays the average market price for prices associated with events occurring within the last 12 months. Only displayed if there were events within the last 12 months.

Note

The average market prices are all calculated only with events of the same part condition.

Alternative Sourcing Strategies

This section offers strategic alternatives to sourcing the part based on available listings and information on IATA MRO SmartHub.

  • Available Connector Listings: Lists other options for the part and potential interchangeable parts available on the Connector.

  • Available Asset Manager Listings: Lists other options available for the part on the Asset Manager.

  • Buying AR and Repairing: Suggests the possibility of purchasing the part in As-Removed (AR) condition and the estimated costs for repair, providing a cost-effective alternative.

  • Buying AR and Overhauling: Suggests the possibility of purchasing the part in As-Removed (AR) condition and the estimated costs for overhaul, providing a cost-effective alternative.