Paperless Supply Chain CollaborationAeroxchange Ltd.

16 November 2015

2

Agenda

Aeroxchange Overview

Industry Standards and Paperless Collaboration

Paperless Supply Chain Accomplishments

Moving Forward

Aeroxchange Overview

4

Ownership and Mission

Aeroxchange’s concept is the establishment of a network to eliminate friction in the supply chain. Solutions address industry transactions that possess a high degree of uniqueness and complexity

Aeroxchange’s mission is to:

Standardize and Simplify the document choreography for key business processesEnable a high degree of process automationBuild the network of buyers and sellers Add value added services to sustain world class supply chain execution

Aeroxchange® is an industry owned service provider that understands the dynamics of the industry and is focused on automating the aviation MRO supply chain

5

Aeroxchange Product Offerings

AeroBuy®

Complete Technical procurement system

Provides one-stop access to all sources of supply

Seamless integration to buyer system (requisition through invoice/remittance)

Enabling touchless invoicing

Configurable alerting and KPI reporting

AeroRepair®

Full featured repair management collaboration system

Seamless integration to buyer/system

Complex repair manages life cycle of repair process

Fast enablement of seller network with two-way B2B

Invoicing that matches the repair order configuration

SmartSource Cloud

Cloud-based eTendering Suite

RFx/Auction/Surveys Project Management

Custom reports

Flexible and configurable

Contract repository and authoring capabilities

Supplier Management

Performance Graphs and supplier comparisons

AeroComponent®

Component support and exchange pool management system

Real time tracking of exchange unit and the unserviceable return unit

Web portal and two-way B2B for both pool provider and operators

Configurable alerting and KPI reporting

AeroAOG®

Inventory sharing system to facilitate rapid spare part acquisition supporting AOG recovery

Loan and borrow transaction portal with tracking capability

Invoice management

Loan and related document management and data capture

Standards and Paperless Collaboration

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Traditional Supply Networks Collaboration Has Challanges

Buyer1

Buyer2

Buyer3

Buyern

Supplier1

Supplier2

Supplier3

Suppliern

Supplier4Buyer4

Paper solutions are easy to implement (Reader self corrects communication anomalies)

Paperless B2B is not forgiving

Standards and reality

“Communication is the illusion it has occurred”

Machine to Machine

_______

S2K EDI

S2K XML

X.12

General XML

Phone/Fax

Email

Websites

______

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Industry Message Translator Makes The Process Tractable and Scale

Buyer3

Supplier1

Supplier2

OEM’s

Repair Vendors

Surplus Sellers

Buyer1

Buyer2

Buyern

Buyer4

You

Aeroxchange Collaboration Engine simplifies the communication between buyer and seller

Decouples buyer/seller connectivity technology so trade partners can move their technology at will

Standards are thematic and process oriented

Message broker takes the illusion out of the Communication

Advancements in Paperless Collaboration

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Component Repair - Process

Unit Off Wing

Create Repair Order & SOW

Accept Repair Order

Send Advanced Ship Notice_US

Send Pick Up Notification

Send POD Notification

Send TearDown and Quote

Activate Repair Hold

Release Repair Hold

Send Advanced Ship Notice_SV

Send Pick Up NotificationSend POD Notification

Send Receipt_SV

Return to Stores or A/C

Send Repair Status Update

Send Receipt_US

11

6

4

1

23

5

7

8

14

9

10

Send Completion Record

12

1315

16

Document Sent by Airline to Supplier

Document Sent by Supplier to Airline

Document Sent by 3PL to All

All Messages Supported and Time Stamped in the Aeroxchange System

Accept / Reject Quote

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E-Enabling Exchange Pool and Repair Management

Use of Exchange Pools has become increasingly popular with many Suppliers

Aeroxchange has created the electronic capability to automate the process between Pool Providers and Repair Suppliers as well as Pool Providers and Airlines they serve

System integrated seamlessly into both Airline, Pool Provider and Repair Supplier systems

Allows Pool Provider to take advantage of a real time, seamless paperless process to provide a cost effective and profitable exchange pool program for the Customer

RO_Creation

RO_ACK

PIC_US

POD_US

RCT_US

ASN_US

Quote Quote Accept

Activate Hold

Release Hold

ASN_SV

PIC_SV

POD_SV

RCT_SV

Identify Failed Component

EO_Request

EO_ACK

ASN_SV

PIC_SV

POD_SV RCT_SV

PIC_US

POD_US

RCT_US

Unit Off WingExchange Pool Loop

Repair Loop

Issue Unit to A/C

Issue to A/C or Local Store

ASN_USPart Config_SV

Part Config_US

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Multiple Ways To Connect With Flexible B2B Document Structures

OrderManagement

Quotation

Logistics

QualityReporting

Invoice

Order Creation and Electronic Communication to SupplierOrder Acknowledgement from Supplier Order Change / Customer Supplier Material TrackingTransmission of Workscope DetailsQuotation Creation and Electronic TransmissionInitial Teardown Report and DetailsApproval / Reject Process

Shipment of Unserviceable Unit to SupplierReceipt of Unserviceable UnitShip of Serviceable Component Back to Customer

Completion Record Details – Validation of WorkscopeDocument AttachmentsAirworthiness Documentation

Invoice Generation and Electronic DeliveryInvoice Approval / Rejection

Performance Reporting

TATStatusHold TimeLogistics

Aeroxchange® Standard Messaging

AEX_SO InvoiceAEX_SO Invoice Exception

AEX_SO MaskAEX Completion RecordDocument Upload / Download

AEX_SO Ship NoticeAEX_SO ReceiptAEX_Shipment Tracking

AEX_SO QuotationAEX_Service Order Quotation/AcceptanceAEX_SO Repair Status

AEX_SO AcceptanceAEX_SO (Change)AEX_SO HoldAEX_SO StatusAEX_Service Order

Aeroxchange is enabling both MRO’s and Airlines to automate the Repair process by

developing modern messaging to fully support the process.

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Eliminating Paper Documents via Automation

Spares

Airlines Suppliers

Structures

Actuation Systems

Electrical Systems

Engine Components

Landing Gear

Wheels and Brakes

Sensors

Catalogue OfferingRFQ/Quote

POAcknowledgement

Change OrdersASN

InvoiceRemit Status

Repair OrderSOW

AcknowledgementASN_US/PU/IOD

RCT_USQuote + SFR

Quote ApprovalCompletion Record

ASN_SV/PU/IODRCT_SVInvoice

Repairs

PoolsExchange Pool Request

AcknowledgementPart Configuration_SV

ASN_SV/PU/IODRCT_SV

Part Configuration_USRMA

ASN_US/PU/IODRCT_US

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Focus on Electronic 8130-3

In December 2008, ATA published Chapter 16 of Spec2000 that covers the specifications for electronic Authorized Release Certificate. It can be used to communicate the data corresponding to

CASA Form 917EASA Form1FAA 8130-3TCCA 24-0078

The specification provides the following to the community to enable this communication

XML structure of the message(schema)Content of the messageProcedure to apply digital signatures to the data in order to enhance security, integrity and traceability

E_8130 Initiative

Automated generation, transmission and processing of this information reduces document management effort and eliminates errors due to typos

Exchange this data (paperless) in a tagged electronic format enables more reliable and consistent processing of this information

This information can be stored, retrieved and analyzed when it is electronically communicated

Eliminates lost damaged and unreadable documents

Benefits

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Communication Requirements and Schemata

8130-3 is an electronically signed document. This provides the following:

Authentication – Ensure that the person signing the data is who they claim they areData Integrity – Assurance that the data has not been altered or tampered with once it has been signedNon-Repudiation – Provide traceability of data

Objectives can be achieved by employing the digital security standards of the World Wide Web Consortium (W3C) XML Signature recommendation:

Digital Certificate – Digital identification assigned by a trusted third part to an individual or organizationDigital Signature – Used by the owner of a certificate to digitally sign electronic files.Public Key Infrastructure – Methodology to determine the currency and validity of the message sender’s digital certificate

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Eliminating Paper In the Supply Chain

Airlines Suppliers

Having …..- Electronic connectivity with robust and trusted translation- Continued development of document standards- Digital workscopes and part certificationResults in ….- Improved speed and cycle times- Improved accuracy with increased level of relevant information- Ability to manage supply chain processes by exception- Better business outcomes

Thank You