AI for cost savings: Magnetic MRO extends partnership with SkySelect for parts procurement

Magnetic MRO has extended its long-term partnership with SkySelect to automate 100 per cent of its stock replenishment parts procurement. The partnership dates back to 2019.

The total technical care aviation solutions provider will rely on SkySelect artificial intelligence to automate spare parts purchasing “to reduce workload, improve operational performance and drive cost savings”.

SkySelect said its software platform combines technology and services for a “seamless end-to-end procurement experience from the part requirement to delivery”.

Magnetic MRO explained that it had so far experienced “exceptional” results, in terms of cost savings and efficiency gains. In October alone, the company said SkySelect’s ‘Procurement AI’ helped generate cost savings of 19 per cent on stock replenishment parts. The vast majority of these savings were captured without any human involvement as artificial intelligence fully automated 79 per cent of the purchases on the SkySelect platform, Magnetic reported.

“Not only are those parts being bought for the best possible price, but requests are being fulfilled quickly,” added Magnetic. “The average time from a part request to a PO recommendation is 3.2 hours, and the average time from the PO creation to PO delivery is less than a week. These results are achieved by Magnetic MRO thanks to full two-way integration between their ERP and SkySelect, which includes the utilisation of ‘Spec2000’ to exchange orders with suppliers.”

Magnetic MRO’s head of supply chain Raivo Roolaid commented: “Having partners such as SkySelect, which we can innovate and grow with, is vital to our fast-growing business.

“SkySelect is always developing new ways to support us in providing world-class service to our airline customers. Their platform gives us much-needed visibility and control of the supply chain, allowing us to run leaner operations and avoid delays.”

SkySelect’s CEO Erkki Brakmann stated: “Magnetic MRO is one of our best partners because of the mutual respect and trust we have for each other as well as having a shared innovative mindset. This type of collaboration is the cornerstone to digitalising the supply chain of materials for MROs and airlines, using the power of artificial intelligence.”

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