Israel Aircraft Industries (IAI)'s Engine Division recently launched a new Reverse Auction website to post tenders for procurement of spare parts at www.iai-auction.com
IAI's Engine Division and IAI's Maman Data Systems Center worked in cooperation with NIA (Netvision Internet Applications) to set up the new website in order to help locate potential suppliers and maintain control of the costs of spare parts required for ongoing projects. The structure of the website allows the Engine Division to post tenders on the site thus making the information available to all its suppliers within a few minutes. Bidding closes 24 hours after the tender goes to air, and IAI's notification about the chosen supplier is received immediately.
All registered suppliers are entitled to use the website to submit bids for the sale of parts with different technical properties. Throughout the tender, suppliers can view the best bids submitted by competing participants and can then submit another cheaper proposal. After the tender has closed, the system displays the potential winning proposals arranged according to lowest price for the Engine Division buyer to review. The buyer will then select the proposal that best meets the specified requirements, while also considering different aspects in addition to price. The main advantage of the new site is that it has facilitated the reduction of spare parts costs and shortened lead times.
The Engine Division orders millions of dollars of spare parts from suppliers every year. This new spare parts procurement process has generated savings of tens of thousands of dollars in the first weeks of the website's operation. The Engine Division of the Bedek Aviation Group at IAI initiated the Reverse Auction website for spare parts procurement in order to make their work more efficient and to provide competitive aircraft engine refurbishment services. In the time that the website has been operational, the Engine Division has posted 31 tenders and received 230 proposals from 18 suppliers throughout the world.
For further information, please contact:
Doron Suslik
Deputy Corp. VP for Communications
Tel: 972 (3) 935-8509
Fax: 972 (3) 935-8512
Email: hpaz@iai.co.il