vetting your vendors & service providers - nbaa 2011 ~ 10-13 oct 2011 vetting your vendors &...
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NBAA 2011 ~ 10-13 Oct 2011
Vetting Your Vendors& Service Providers
Presented by:
Rick BoyceDirector, Aviation Infrastructure & Services
NetJets, Inc.
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The FBO Marketplace
• More the 5,000 domestic airports with pavedrunways
– More than 3,100 FBO’s
– Less than 500 airports have multiple FBO’s
– Only 376 have scheduled airline service
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How do you select a vendor?
• What are the priorities?
• Do you have a standardized process?
• Solicit input from customers, crews,dispatchers & maintenance?
• What other aspects influence your decision?
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FBO Selection Criteria
• Safety
• Service
• Facilities & Amenities
• Partnership Development
• Maintenance Capabilities
• Value or Price
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Safety
• Line Service Training
• Record Keeping
– Training
– Fuel QC (ATA 103 Standards)
– Current placards
– NFPA 407 compliance
• Audits
– Fuel companies
– DOD
– Airlines
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Safety
• Equipment
– Trucks
– Chocks & cones
– Tugs & tow bars
– Wands
– Whistles & radios
– Potable water & ice machines
– Refrigeration
– Security cameras
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Safety
• Confidentiality
– Privacy policy
– Disclosure of personal information
– Disposal of confidential documents
• Secured Access
• Ramp Operations
– Marshalling
– Towing operations
– Hangar movements
– Vehicles on ramp
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Service – How do you define?
• Service Culture
• Proactive Staff
• Attention to Detail
• Open Communication
• Assistance w/ Third Party Services
– Catering
– Hotels
– Ground transportation
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Facilities & Amenities
• Appearance inside & out
• Clean & functional
• Restrooms
• Passenger & crew areas
• Flight planning and tracking
• Wi-Fi
• Parking availability (spaces or secured valet)
• Hangars
• Coffee, newspapers, ice
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Partnership Development
• Is your business going to be a singletransaction or long term relationship?
• Willing to assist with initiatives
• Proactive communications
• Driving efficiencies
• Reinvesting in operation
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Maintenance Capabilities
• What level, if any, do you need?
• Oil, oxygen & nitrogen service
• Repair station or A&P onsite
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Value or Price
• Fuel
– Direct or contract
– Method of payment
– Fees (flow, concession, consortium, freight, etc)
• Handling or facility fee
• Landing fee
• Hangar costs
• Deice costs
• Taxes
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Value or Price
• Airport considerations
– Hub/Airline vs. GA
– Infrastructure
– Taxi times
– ATC delays
– ATC routing
– Customs
– Drive time to destination
• Other
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NBAA 2011 ~ 10-13 Oct 2011
Presented by:
Phil LinebaughChief Operating Officer
International Trip Planning Services, LLC
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What is a “Third Party Vendor”?
• Ground Handler / FBO
• Security Provider
• Caterer
• Flight Service Provider
• Ground Transportation Company
• Aircraft Cleaning Company
• Etc, etc
NBAA 2011 ~ 10-13 Oct 2011
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Importance of “Third Party” Vendors
• Act as an extension of your flight operations
• Provide services at locations that ops can’tprovide themselves
• Ease strains on crew and passengers
Corporate aviation expectations of Third Party Vendors:
Secure, safe, trustworthy, reliable and on time.
NBAA 2011 ~ 10-13 Oct 2011
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1. Service
2. Facilities
3. Safety / Compliance
4. Partnership
5. Price / Invoicing
NBAA 2011 ~ 10-13 Oct 2011
Checklist of Key Indicators
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You’ve radioed ahead but you’ve done that before
only to find nothing prepared when you got there.
As you round the corner of the taxiway onto the
ramp, you feel relief at the sight of a lineman with
wands directing you and behind him your passenger
ground transportation.
NBAA 2011 ~ 10-13 Oct 2011
Checklist Of Key Indicators
1. Service Is The Key
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In choosing a third party service provider SERVICE is
the single main distinguishing factor and the one that
will influence the success or failure of a trip – you must
be assured that you are trusting the right group of
people to make your operation shine.
NBAA 2011 ~ 10-13 Oct 2011
Checklist Of Key Indicators
1. Service Is The Key
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Service is the primary reason we choose a 3rd
party vendor. What do we expect?
1. Deliver a service Greater Than Expected.
2. PROactive rather than REactive
3. Corporate -vs- Airline Behavior
4. Quick Replies
5. Eliminate the Unexpected Surprises
6. Take necessary steps to impress.
NBAA 2011 ~ 10-13 Oct 2011
Checklist Of Key Indicators
1. Service Is The Key
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• Provide services that are beneficial.
• Properly trained staff.
• Modern, well-equipped and clean facilities. They need notbe a million-dollar palaces, but how clean, neat and wellrepaired they are tells how much people care and howmuch pride is instilled.
• Does the aviation side look like an aviation side or just aparking lot for cars and boats.
• There is a difference between Domestic and Internationalfacilities.
NBAA 2011 ~ 10-13 Oct 2011
Checklist Of Key Indicators
2. Facilities
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Homework and background checks are required to
determine if the vendor, and their vendors are:
Licensed
Insured
Bonded
Permitted (Badged)
Certified
Trained
NBAA 2011 ~ 10-13 Oct 2011
Checklist Of Key Indicators
3. Safety & Compliance
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Aviation is a different world than it was 10, 15, 20 years ago.
Each and every aspect must be compliant with both:
• Federal Corrupt Practices Act
• UK Bribery Act
Vendors must be willing to sign a form stating that
they are in compliance and will remain compliant.
There is NO wavering on this point.
NBAA 2011 ~ 10-13 Oct 2011
Checklist Of Key Indicators
3. Safety & Compliance
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We send clients worldwide to use vendors of all shapes and sizes.
These vendors represent our business and the interests of our
clients. Therefore we need a “partner” to keep our best interests
and attributes in the forefront while providing our clients:
NBAA 2011 ~ 10-13 Oct 2011
Checklist Of Key Indicators
4. Partnership
• Honesty
• Quality
• Reliability
• Experience
• Reputation
• Responsiveness
• Loyalty
All this builds CONFIDENCE!!!
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While price isn’t in the forethought, it is a contributing factor.
•Reasonable
•Fair
•Competitive
•Must Provide Overall Value
Invoicing should be:
• Quick
• Thorough
• Complete
NBAA 2011 ~ 10-13 Oct 2011
Checklist Of Key Indicators
5. Price/Invoicing
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Third Party Vendors ARE your representative.Do they reflect your:
• Service Levels
• Values
• Safety Standards
• YOU!!!!
Phil LinebaughChief Operating Officer
International Trip Planning Services, LLC
NBAA 2011 ~ 10-13 Oct 2011
Summary
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NBAA 2011 ~ 10-13 Oct 2011
Presented by:
Henry LeDucOperations/Dispatch Manager
Texas Instruments, Inc.
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Why Use Vendors?• Many Options Available; Reflects
the Many Goals of FlightDepartments
• Not just an extension, but areflection of your organization
• Expanded Capabilities
• Regional Familiarity
• Expertise
• Reduce Costs
• Established Procedures
• Consistency of Service
NBAA 2011 ~ 10-13 Oct 2011
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Weighing the Parameters• Match Your Missions; The Visions
for the Organizations Must Be theSame
• Use Objective Criteria
NBAA 2011 ~ 10-13 Oct 2011
• Safety
• Service/Reliability
• Facilities/Capabilities
• Partnership
• Security
• Compliance
• Price
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Steps To Your Evaluation
1. Understand That This Is a CriticalUnion
2. Prioritize the Key Points To MatchYour Department’s Needs
3. Collect Feedback - Utilize YourResources by Discussing withYour Peers
4. Ongoing Process - Make a Habitof Benchmarking on a RegularBasis
5. Involve Your Team In the DecisionMaking Process
6. Process is Similar AcrossIndustries
NBAA 2011 ~ 10-13 Oct 2011
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Feedback Form
31
• Vendors are a Partner inImprovement
• Form Completed AfterEvery International Flight
• Capturing and RetainingKnowledge
• Completed Forms AreSent to Our ServiceProviders as a Source ofData for Trend Analysisand ProcessImprovement
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Safety• Developed Safety Management System
• Processes for Quality Control/Testing
• Organizational Training
• 3rd Party Industry Standard SafetyCertifications
• Aviation & Non-Aviation Endorsements
NBAA 2011 ~ 10-13 Oct 2011
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Service/Reliability/Facilities/Capabilities
• Desire to Make Service a Priority
• Do More Than Expected
• Experience of Personnel
• Organizational Support
• Professionalism
• Willing To Receive/Action Feedback
• Organizational Agility
• Need the Right Sized Ramp
• Making Best Use of AdvancingTechnologies (i.e. iPads, Wireless,etc.)
NBAA 2011 ~ 10-13 Oct 2011
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Partnership
• Consider the Size and Scope of the Operation
• Understand Their Vision For The Future; New Products/Services
• Ability to Expand/Grow with your Flight Operations
• Efficiencies of Scale
• Variety of Products/Services Available
• Flexibility to Integrate With Your Other Vendors
• Influence & Familiarization
NBAA 2011 ~ 10-13 Oct 2011
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Security
• Physical Security of Facilities
• Protection of Personnel and Aircraft
• Security of Information
• Compliance with Regulations
• History; Past Violations are Warning Flags
• Length of Contract
• Utilize Your Organizational Resources/IndustryNetworks to Assist with the “Homework”
NBAA 2011 ~ 10-13 Oct 2011
Legal
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CostPrice is not the cost but is a factor in the cost. The Real Cost is the Sum of
all the Combined Factors
NBAA 2011 ~ 10-13 Oct 2011
• Consider the Value Added
• Needs to Fall Within Your Budget
• Determine if Products Can Be Bundledin Order to Reduce Costs
• Terms/Means of Payment
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NBAA 2011 ~ 10-13 Oct 2011
Questions?