This was our presentation for Deloitte Consulting Challenge. Team Members Srinivasa Raja, Shyam Rajaram, Ming Feng, Dhanesh Gandhi and Preetha Sridhar

1. GREEN DOT CONSULTING
ERP Vendor Selection presentation
Preetha Sridhar
Ming Fang
Dhanesh Gandhi
Srini Saravanan
Shyam Rajaram
Building solutions just not
promises

2. Executive Summary
 MHS facing declining profits and stalled revenue growth in recent years - $2
million profit shortfall per week
Context
 Supplying to three markets segments: parts to aircraft OEMs, spare parts to
commercial airlines and overhaul and repair shops.
 Growth in commercial airlines around the world, especially low cost carriers
Market  Focusing more on the commercial airlines business is key to helping MHS meet
assessm growth aspirations.
ent &  Airline industry in long term distress – making over $42 billion losses in the last
review of six years
strategic  Significantly improve demand forecasting and lower lead time and supply chain
options costs for its customers i.e. commercial airlines
Proposed  Imperative to invest in an ERP system to meet critical success factors
way  Propose selecting GMS Alpha ERP system given its superiority in planning and
forward forecasting

3. The context
Our understanding of the context Three key objectives for MHS
• MHS with stagnating growth and declining
profits in recent years
– Profit shortfall from plan of $2M per week
• Three key customer segments
– OEM • Improve market position as a reliable
– Commercial airlines supplier
– Repair and overhaul shops
• Several challenges faced by MHS in the • Become a one stop shop for all
market... maintenance and repair needs of MHS
– Small customer base customers
– Low customer satisfaction
– Increased need for higher availability, lower • Meet aspirations by bridging the $2M profit
costs and longer lead time shortfall
• ...along with internal challenges
– Inaccurate data and lack of sales
information

4. Review of market
OEM aircraft
manufacturers Commercial airlines MRO services
• Supply to new and retrofit • Supply of spare parts to • Supply of spare parts and
Segment systems and parts to commercial airlines related services to overhaul
Description aircraft manufacturers and repair shops
• Boeing and Airbus account • Attractive with growing • Low loyalty among
for bulk of the market travel demand, however, customers in this segment
demand trend of in-house repairs,
Demand
substitutes and longer life
Characterist
• Interested in availability,
ics
speed and lower costs
• Airlines in consortiums to
increase buying power
• Pricing key lever (i.e. lower • Very lucrative business and • Typically price sensitive
Expected margins) in order to get long historically delivered most customers
Margins term contracts and to retain of the profits
design rights – 100% gross margin
Supply proprietary parts to OEMs to improve chances
of winning in the commercial airlines market

5. Increasing sales and lowering costs by 25%
each necessary to address $2M shortfall
Change in gross margin of spare parts % change in gross margin with %
division with 5% change in sales & increase in sales and decrease in
distribution costs costs
~8% uplift
$M $M
in profit
150 Addresses
13 19 shortfall
250 7
200
100
150
245 245 127
100 104
50
82
60
50
39
19
0 0
Current Lowering Increasing Tota 5% 10% 15% 20% 25% 30%
gross distribution sales by l
margin costs by 5%
5%

6. Five levers identified to improve profitability
Increase Unlikely to be lever given competitive
prices intensity in the market
Increase 1 Increase share of wallet
revenue
2 Acquire long term contracts
Increase
volume
Improve 3 Expand distribution portfolio
profitability
4 Expand across the maintenance value
chain
Lower costs 5 Lower inventory costs

7. Four critical success factors to win in the
market and meet growth aspirations
 Better demand forecasting tool
 Customer service
 Lower supply chain costs for customers
 Lower lead time
Investing in an ERP system will be critical
to succeed in the aviation market

8. Module prioritization

9. GMA Alpha System and Vision Beta System
evaluated on the basis of critical success
factors
W
E
I
G
H
T
MODULES

10. Implementation plan…
•Assign a project team
•Examine current business
Strategic •Set objectives
Planning •Develop a project plan
•Review software capabilities
•Identify manual processes
Procedure •Develop standard operating procedures
review
•Convert data
Data •Collect new data
collection •Review all data input
and •Clean up data
cleanup
•Pre test the database
•Verify the testing
Training •Train and test
and testing
•Develop a final Go-Live Checklist
Go live and •Evaluate the solution
evaluation

11. …Implementation plan

12. Short Term Solution
 Asset tracking and valuation
Inventory
 Managing stock levels
Count
 Data – the most important asset of any organization
Database  Update excel sheets
Cleaning  Share data across departments
 Record sales information
 Inventory/warehouse module
Prioritize
module  Order fulfillment
implementatio  Inventory forecasting
n

13. Road to stay competitive
Customer Automating and Green IT
relationship streamlining process
Differentiation: Very Differentiation: Differentiation: High
High Moderate Cost: High
Cost: Moderate Cost: Moderate
Electronic Data Making process Better waste
Interchange, Vendor automated and management, and
Managed Inventory, transparent to easily leverage incentive
Targeted marketing manage the logistics options