Talking to Rob Suhs, Vice President of Global Sales at Inventory Locator Service (ILS)
By Peter Jorssen
How can data analytics improve operational efficiency in the aviation industry?
Operational efficiency in the aviation industry can vary significantly depending on one’s role within the sector. For instance, what constitutes operational efficiency for an airline might differ from that of a Maintenance, Repair, and Overhaul (MRO) organization or an aftermarket parts trader. Therefore, it’s essential to examine operational efficiency through multiple lenses. While it’s beneficial to analyse each aspect individually, a collective approach offers a more comprehensive and exciting discussion.
Data analytics plays a crucial role in achieving operational efficiency across various facets of the aviation industry. One of the most talked-about areas is the supply chain. Although the supply chain has been extensively discussed, there are other critical aspects where data can drive efficiency, such as planning and demand forecasting.
Understanding where the demand for services or parts originates is a key component of the supply chain. By drilling down into more nuanced data sets, companies can pinpoint specific regions where demand issues arise. For example, is the demand signal occurring in North America, Greater Europe, the Middle East, or the Asia-Pacific region? Developing precise data models allows for greater operational efficiency by pinpointing these specific areas for signal strength.
For example, part suppliers and distributors can use data analytics to optimise the location of materials. Whether a distributor primarily stocks in the Americas or is a European distributor sending goods to the Americas, analysing demand metrics can inform decisions about optimising material supply levels in different regions based on demand metrics. This approach ensures that suppliers can service customers globally more effectively.
Using data analytics helps the aviation industry improve operational efficiency by offering insights into supply chain management, demand forecasting, and strategic planning. This approach ensures smoother and more efficient operations across the industry.
What are the key challenges faced by aviation companies in implementing data-driven strategies?
The aviation industry faces several key challenges in implementing data-driven strategies. One of the primary challenges is companies striving to unlock operational efficiencies and understand current operations. This involves documenting and mapping out individual processes, such as placing an order or submitting a request for quotation (RFQ), so that everyone in the organisation can understand them, step-by-step. This operational clarity is essential for identifying ways to unlock the value that data can then bring to each process. When these processes are combined, they form an organisational component that can leverage data efficiencies on a larger scale.
Another significant challenge is maintaining data hygiene. Data hygiene is essential for any organisation, including those in aviation. Without clean and trustworthy data, it is impossible to make informed business decisions. Therefore, layering a data strategy on top of unclean data will not be successful. As a business partner to the aviation community, we at ILS emphasize the importance of data hygiene. We provide some of the cleanest and most trusted data in the aviation community, which is crucial for our customers. This trust in our data has been built over 45 years, and it is a key component of our recognition and success in the aviation community.
How can real-time data manage and mitigate disruptions such as weather or technical delays?
Although we at ILS may not directly handle data transmission from aircraft to operational centres, these centres within an airline can quickly process incoming data from aircraft to determine necessary actions upon arrival. For instance, if a valve is malfunctioning, the Aircraft on Ground (AOG) team can promptly place an order or prepare a replacement valve. If sourcing the valve is required, they can count on ILS to ensure its availability at the destination, benefiting from our capabilities in ensuring timely and efficient supply. This approach minimises operational downtime by making sure critical components are ready for immediate use, thus enhancing operational efficiency.
How is AI-powered data analysis transforming decision-making in the industry?
Today Artificial Intelligence (AI) is a hot topic and has become an integral part of everyday consumer life. It is utilized in various applications on mobile phones and personal computers. At ILS, AI has long been a central focus. We are not merely participants in the AI trend; we are leaders in its implementation. Since 2017, we have employed AI to enhance the value, statistics, and information we deliver to our customers. We employ numerous AI and machine learning programs behind the scenes to consistently analyse data. While customers may not realise that AI is being used, it plays a crucial role in analysing and synthesising the vast amount of data for our customers’ use. These systems ensure the information is clean, as precise as possible, and easily accessible for our customers.
How do you validate through the human element that the data is correct? What types of checks and balances you have in place to do that?
Checks and balances are absolutely key. The public is becoming increasingly aware of this due to the ease with which false information can be easily propagated or generated by any number of different sources. We’re seeing that today in many media outlets. Similarly, on the data side, it is likely to be present as well.
We believe that our checks and balances, along with our long-running history of data, give us confidence in our data and our data sources, pre-empting us from a lot of the noise that comes from false AI outputs. That aside, rest assured we’ve got a number of checks and balances behind the scenes to make sure that does not happen.
Again, coming back to the data hygiene you talked about earlier, sometimes bad data does get in. But don’t worry, we have systems in place to immediately flag it, put it off to the side, analyse it, and make sure its valid based on trends or other industry-related information.
Do you work with the OEMs to change how they structure data so you can disseminate it better so AI can make better decisions?
At ILS, we collaborate with a number of OEMs, including engine, airframe, and component manufacturers for their data needs. If we look at OEMs individually, you will find that they are on similar, but very different, data journeys. Many times they have their own specific goals. Others are more open to collaboration. No judgment, no right or wrong, just different approaches. At ILS, we like to work with each OEM, meet them where they are at on their journey, remain neutral, and provide insight and assistance to help them reach their goals and objectives.
For example, some OEMs are very advanced and seek a collaborative approach, while others may prefer to operate in a more closed manner. Regardless of their stance, our goal is to support them by integrating their data with ours to foster a comprehensive, global perspective. We maintain neutrality to ensure that our services are adaptable and beneficial to all our OEM partners, respecting their unique paths and contributing to their success. We believe this approach allows OEMs to make more informed decisions, ultimately benefiting the entire aerospace industry.
How important is data security in the aviation industry today, or what measures are you taking to enhance security for your platform users?
One of the things that’s really important in our industry today is (data) security. It’s at the forefront of many people’s minds, both personally and professionally, and certainly at an organizational level. I’m very excited to share that ILS is the very first and only aviation marketplace to achieve SOC 2 compliance. So, what is SOC 2 compliance? It means that as a user of our platform, you have an added level of security and trust, knowing that the information you’re inputting or getting from our platform is being handled with the highest standards of security. It also means that customers can have confidence in the reliability and integrity of the services provided, knowing that the company undergoes regular audits to maintain security standards
But we’re not stopping there. Starting in 2025, we’re implementing two-factor authentication. This extra layer of security ensures that the people on our platform are real and verified. What many people might not know is that ILS has been using a product called Visual Compliance for a long time now. We screen every company and every user in our system for compliance with international regulations. This means that when you come onto our platform and see a company or an individual, you can be confident that they have been screened every 24 hours through Visual Compliance. This service is provided by Descartes, a globally recognized security company, adding another layer of security and assurance.
And you want to make sure that they are doing their due diligence to make sure that they're at least adhering to corporate standards.
Absolutely. We strongly believe that each company should be doing their own due diligence. They should have the necessary relationships and conduct their own investigatory work. When companies get to ILS, they should know that there’s an extra added level of security. It’s not meant to replace an individual organisation’s research, but to complement it and provide additional assurance.
When you're selling a part to a client, are you transferring the historical records with that component – it could be a used part? Do you have electronic documentation you pass on to it, or is it paper, or is it a combination of both - how does that work?
To clarify, ILS does not sell parts; but rather brings buyers and sellers together on ilsmart.com. Nevertheless, I find this topic very exciting because of the critical importance of the records verification process, especially given that the transaction cannot be completed without this critical step. And to your question, does [it] the records transfer process happen through a manual process whereby physical paperwork is being shipped by UPS or FedEx, or exchanged digitally through email or a file transfer service? The answer is that it depends; it depends on the capabilities and the preference of both the buyer and seller. We recently introduced a new feature [on ILS] called AeroChat, which everyone now has access to. AeroChat gives ILS users the ability to communicate directly with each other using a familiar chat window which also has the capability to send and receive documents directly on ILS.
For example, if you’re a buyer looking for a specific part and want to ask the supplier for a quote and the paperwork, you can do all of that directly through AeroChat online. You don’t have to leave the platform to go to email or phone; you can handle everything right there on ILS using AeroChat.
We are advancing our interest in this area. Last year, we launched our SalesEdgeTM Commerce, an e-commerce component of ILS. This platform enables sellers of parts and services to showcase their entire inventory on their own branded websites.
At ILS, our mission is to support the growth of your business, whether you are an airline, an MRO, an aftermarket parts trader, or an OEM. We aim to facilitate this growth by emphasising the importance of your brand, which we acknowledge as one of your most valuable assets.
Through SalesEdgeTM Commerce, our goal is to ensure that you can represent your brand as you intend, not by a third party. We aim to engage with your customers throughout their journey. Whether they contact you directly by phone or email, encounter your products and services on ILS, or visit your corporate website, we want you to be able to capture these opportunities effectively.
