Digital Digest - Issue 2 (Nov 2024)

ISSUE NUMBER 2

NOVEMBER 2024

DIGITAL DIGEST

BY DIGITAL FLIGHT Keeping you informed on the latest technology trends and developments

EXCLUSIVE WITH JEFF JERGE This months Community Spotlight is with Oyster Aero

AIRFLO AI GUEST ARTICLE

INSIGHT: DIGITAL TWINS

AMBRY HILL EXCLUSIVE

FLYCOVR GUEST ARTICLE

How they are helping to solve the Accountancy crisis

Could (Digital) Twinning be Winning for the Aviation Industry

Are Aviation Parts Marketplaces coming to an end?

Redefining how insurance is bought and sold in Aviation

THIS ISSUE

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FROM THE FOUNDER

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GUEST ARTICLE: AIRFLO.AI

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NEW SOLUTIONS

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GUEST ARTICLE: AMBRY HILL

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GUEST ARTICLE: FLYCOVR

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NEWS & UPDATES

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DIGITAL FLIGHT INSIGHT

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Q&A WITH JEFF JERGE

FROM THE FOUNDER

In today's rapidly evolving world, businesses in the aviation aftermarket are exploring digital technology to effectively navigate and overcome industry challenges. However, the path ahead can be incredibly daunting, with a severe lack of guidance, assistance, and awareness of the current digital landscape.

We pride ourselves on curating and showcasing the very best technology from across the aviation industry. Our platform actively connects businesses seeking innovative solutions that are provided from a range of trusted partners.

We are dedicated to influencing the speed in which businesses in the aviation industry adopt digital technology.

By offering comprehensive support, insightful advice, and unparalleled access to a vast network of technology providers, we aim to empower businesses to stay ahead of the curve and unlock the immense potential that modern day technology has to offer.

Our mission is to shape the future of the aftermarket by influencing the adoption rate of digital technology.

Craig Skilton FOUNDER

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GUEST ARTICLE: AIRFLO.AI

HOW THE ACCOUNTANTANCY CRISIS IS AFFECTING BUSINESSES

The accounting profession is in the midst of a critical shortage. With an aging workforce, high turnover, and fewer new professionals entering the field, businesses—particularly small and medium-sized enterprises (SMEs)—are facing operational challenges. This shortage, combined with increasing regulatory complexity, has left many organizations struggling to keep up with their accounting needs. However, AI-driven automation solutions, such as Airflo, offer a way to bridge this gap, helping companies navigate the crisis while improving efficiency and reducing costs.

Causes of the Accountant Shortage Aging Workforce: According to a study by the American Institute of CPAs (AICPA), more than 75% of Certified Public Accountants (CPAs) are nearing retirement. This mass exodus is leaving a significant talent gap that is difficult to fill.

Decline in New Entrants: Fewer students are pursuing accounting degrees due to the perception of the profession as rigid and lacking in dynamism. Other careers in technology and finance seem more attractive, contributing to the decline in new accountants.

Increased Regulatory Complexity: The complexity of financial regulations continues to grow, raising the barrier to entry for new accountants and causing burnout among existing professionals.

Workload and Stress: Accountants are overburdened with increased workloads, especially during tax seasons and quarterly reporting cycles, leading to high turnover and further staffing shortages.

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Impact on Businesses The accountant shortage has significant ramifications for businesses across all industries, particularly SMEs. Increased Costs: As competition for qualified accountants grows, salaries are rising, straining business budgets.

This is especially tough for companies with limited resources.

Delayed Financial Reporting: With fewer accountants available, many businesses face delays in closing their books. This impacts decision-making, access to financing, and compliance with regulatory deadlines.

Reduced Business Growth: Without timely and accurate financial data, businesses struggle to make informed decisions about expansion and investment, limiting growth opportunities.

Decreased Focus on Strategic Tasks: Accounting teams are consumed by routine tasks such as data entry and reconciliations, leaving little room for strategic activities like financial planning and advising on corporate strategy.

Airflo’s Solution: Automation and AI-Driven Accounting By harnessing the power of AI and other advanced technologies, Airflo provides a comprehensive solution to the accountant shortage through our RapidIDP and Digital Employees. These innovations allow businesses to automate labor-intensive tasks, significantly reducing reliance on manual processes, while empowering accounting teams to focus on higher-value, strategic initiatives.

Data Extraction: Airflo’s RapidIDP (Rapid Intelligent Document Processing) technology automates the extraction of data from various financial documents, such as invoices, receipts, excel files, and dozens of other file formats.

This significantly reduces manual data entry, ensures compliance, and improves the accuracy and speed of financial reporting​.

Automating Routine Tasks: Airflo’s Digital Employees can automate both routine and more complex accounting tasks. These AI-powered agents learn from workflows and adapt to changes over time, almost eliminating the need for human intervention, but always having a human in the loop when necessary. As a result, accounting teams can focus on complex financial analysis, forecasting, and strategic planning​.

Scalability: Airflo enables businesses to scale their accounting operations without the need for additional hires.

Our RapidIDP technology efficiently processes large volumes of structured, semi-structured, and unstructured documents, while our Digital Employees operate continuously, 24/7/365, without breaks. This seamless, roundthe-clock functionality makes Airflo an ideal solution for SMEs seeking to grow efficiently, even in the face of a skilled accountant shortage.

Cost Efficiency: While the initial investment in Airflo may seem significant, the long-term cost savings are substantial. By reducing the need for additional hires and improving operational efficiency, businesses can process more with fewer resources, helping to control rising overhead costs associated with the accountant shortage​.

Easy Integration: Airflo's systems seamlessly integrate with your existing data sources, such as ERP and accounting systems. This interoperability allows businesses to leverage their existing technology while enhancing efficiency and accuracy across financial operations.

Example Processes Airflo Automates Accounts Payable (AP): Automates the matching of invoices with purchase orders and receipts, ensuring accuracy and reducing processing time.

Accounts Receivable (AR): Simplifies the creation, distribution, and tracking of invoices, improving cash flow and minimizing delays in payment.

Reconciliations: Automates bank and account reconciliations to ensure financial records are accurate and up to date, reducing the risk of errors.

Expense Management: Streamlines the process of capturing and processing employee expenses, ensuring compliance with company policies and expediting reimbursements.

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NEW SOLUTIONS VISTAQUOTE

SHOWCASING THE NEW DIGITAL SOLUTIONS WHO HAVE JOINED THE DIGITAL FLIGHT COMMUNITY.

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VISTASUITE

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About

About

Cloud-based and designed to automate your inbound RFQ management and quoting workflow. VistaQuote provides the ability to view real-time business data on the spot for fast pricing decisions with one click. Send customers their quote, and with no data entry required, the quote is automatically entered into your business software. Features include RFQ Standardization, centralized company blocking, automated RFQ routing, multi-tier alerts, co-worker shares, and more.

VistaSuite Enterprise offers efficient cloudbased aviation business management software designed to streamline aviation MRO and aircraft parts aftermarket operations. With features like Email RFQ Management, Selling and Buying capabilities, as well as Work Order and Exchange Management, VistaSuite Enterprise is a comprehensive aviation ERP and MRO solution.

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GUEST ARTICLE: AMBRY HILL TECHNOLOGIES

ARE AVIATION PARTS MARKETPLACES COMING TO AN END?

The Rise of e-Commerce Storefronts in the Aviation Aftermarket As the aviation industry continues to soar, the buying and selling of aircraft parts play a pivotal role in its upward trajectory. Relatively new methods of sourcing parts through exclusive company storefronts are gradually being overshadowed by technological adaptations that strengthen the position of traditional online marketplaces. This evolution offers insight into the future of aircraft parts trading transactions.

The aviation parts industry, comprising manufacturers, suppliers, airlines, and maintenance, repair, and overhaul (MRO) providers, has witnessed a shift to direct sales through individual vendor e-commerce sites. However, with rapid technological advancements, the landscape is changing, prompting aviation suppliers to reconsider and double down on traditional ways of marketing and selling their products and services through aircraft parts listing services and marketplaces.

The Shift Towards Specialized e-Commerce Storefronts Aviation suppliers are increasingly interested in optimizing their marketing and sales strategies. They are opting to provide a controlled platform for direct sales through specialized e-commerce storefronts. This shift aims to streamline transactions and enhance customer experiences, enabling repeat buyers to complete purchases directly through the seller’s website and avoid time-consuming communication through email and phone.

Specialized storefronts offer sellers a streamlined workflow compared to online marketplaces, which often suffer from cluttered selling processes due to manually managing numerous inbound RFQs. However, while e-commerce storefronts excel in specific transactions and repeat business, online marketplaces maintain superior market reach and data analytics for sellers and a broader selection and competitive pricing for buyers.

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Pros and Cons of e-Commerce Storefronts vs. Online Marketplaces in Aviation E-commerce platforms provide a unique digital storefront for showcasing specific products and services, facilitating direct interaction and customer relationship-building. In contrast, online marketplaces offer accessibility, convenience, competitive pricing, global reach, and big data.

Marketplaces democratize access to aviation parts, enabling small companies to compete with larger ones. They offer unmatched convenience and access to global inventory, supporting a broader selection of parts and services.

Marketplaces provide unparalleled market exposure for sellers to reach a worldwide audience and explore new sales opportunities.

While e-commerce storefronts focus on targeted interactions, marketplaces cater to a broader audience, albeit with heightened competition for sellers.

Evaluating Costs and Benefits of Custom E-Commerce Platforms vs. Online Marketplaces for Aviation Companies Setting up and maintaining a specialized e-commerce storefront can incur significantly higher costs than membership in an online marketplace. Developing a custom e-commerce platform and the necessary system integrations with in-house inventory systems, checkout technology, and ongoing maintenance can require substantial financial investment.

On the other hand, online marketplaces can offer a built-in customer base and established infrastructure. Joining an online marketplace typically involves a straightforward membership or transaction fee structure, providing a cost-effective way for sellers to quickly access a broad customer base. This cost-effective approach allows sellers to allocate resources to other critical areas of their business while still benefiting from the broad market reach and competitive pricing that online marketplaces provide.

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Aviation companies should join an online marketplace when: 1. Seeking a proven, cost-effective solution: Leveraging an existing online marketplace can be a more budgetfriendly option to minimize initial setup and ongoing maintenance costs.

2. Appealing to a broader customer base: For sellers aiming to reach a wider audience and benefit from an established platform’s built-in traffic and customer base, joining an online marketplace may be the ideal choice.

Revitalizing Online Marketplaces for Aircraft Parts Online listing services and marketplaces for buying and selling aircraft parts have existed since the early 1990s.

But recently, aviation aftermarket companies have increasingly chosen to establish specialized e-commerce storefronts. As a result, are online aircraft parts trading marketplaces becoming a thing of the past?

Managing inbound RFQs and creating customer quotes is a disjointed process for suppliers using online marketplaces. However, an emerging third-party software provider, Ambry Hill Technologies, offers solutions and technologies that use artificial intelligence (AI) to revolutionize workflows and improve efficiencies across the board.

Another innovation from Ambry Hill, automatic quoting, enables sellers to respond to inquiries with unprecedented speed. Automating quote creation eliminates manual processes, streamlines procurement, and reduces errors. Adaptive pricing models ensure competitiveness and fairness, allowing sellers to adjust prices in real-time based on market conditions.

Ambry Hill’s Vista-Quote and Vista-Suite Enterprise ERP/MRO software solutions incorporate AI to automate RFQ interpretation and pricing decisions, significantly reducing quote preparation time. Depending on the business strategy, customers utilizing automatic quoting on those platforms experience 50%-80% of their RFQs being auto-quoted.

Thanks to innovations for RFQ and Quote automation found in Vista-Quote and Vista-Suite Enterprise, sellers can list on multiple marketplaces without feeling overwhelmed, marketplaces benefit from the expansion of users, and buyers experience increased response times.

As we look to the future, continuous innovation and integration with emerging technologies will strengthen the position of online marketplaces for aircraft parts and services, ensuring they remain at the forefront.

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GUEST ARTICLE: FLYCOVR

REDEFINING THE WAY INSURANCE IS BOUGHT & SOLD IN AVIATION

About Flycovr: Flycovr is revolutionising the way insurance is bought and sold in the aviation industry, by providing access to aviation specific insurtech solutions. Born out frustration, Flycovr was founded with a specific mission… to redefine how insurance is bought and sold in the global aviation industry.

Why Flycovr? Save Time. Save Money.

We love the global aviation supply chain, because it’s our supply chain too. We speak your language – we know components: we know our ELTs from our PLBs. We know logistics: we know our OBC’s from our AOG’s. We know repairs: we know our AMM’s from our CMM’s. We understand how fast the supply chain moves and that your customer cannot wait. Flycovr guarantees to connect you with an aviation expert in 60 minutes or less. Time saved.

Cut out the noise and administration. Get direct access to best-in-class instant digital solutions. Pay-as-you-go products, so you only pay for what you need. Money saved.

How Does Flycovr Work?

Accessing adequate and cost-effective insurance cover could not be made more simple. Anytime from anywhere.

Simply remove the pain of finding insurance through Flycovr’s carefully curated panel of insurance partners. Whether fully embedding digital solutions into your customer process or having a dual branded portal – Flycovr’s offering is instant, and free to use for you and your customers.

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GUEST ARTICLE: FLYCOVR

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NEWS & UPDATES

KEEPING YOU INFORMED OF OUR SOLUTION PROVIDERS LATEST UPDATES AND DEVELOPMENTS.

SkySelect Integrates with Camp Systems new SalesEdge Product for Quantum & Corridor.

SalesEdge Quoting is launched by CAMP Systems’ portfolio companies, Quantum Control and CORRIDOR, and SkySelect is an inaugural integration partner.

With SalesEdge Quoting, suppliers can consolidate RFQs across multiple marketplace platforms and submit quotes from a single, centralized hub. The seamless integration simplifies quoting and eliminates redundancy between marketplace platforms and ERP systems, including Quantum Control and CORRIDOR Aviation Services Software.

SmartCert passes 2,000 companies within their Network This means even more businesses benefit from increased accuracy and visibility in their cert management processes through our collaborative, AI-powered platform. Based on how fast they are growing, it won't be long before they reach 3,000

Ambry Hill announce an integration with Locatory This new Locatory.com integration, in combination with Vista-Quote.com’s automation capabilities, allows users to handle more inquiries through a wider range of marketplaces and act on more sales opportunities without increasing manual workload.

Oyster Aero & Fulcrum360 have teamed up to help effectively sell surplus inventory.

They aim to dive deep into your inventory, giving you insights and strategies to connect with the right buyers and get to work as your surplus channel partners.

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DIGITAL FLIGHT: INSIGHTS

Could (Digital) Twinning Be Winning for Aviation?

In internet meme speak, “twinning” refers to when people, places or things look the same, such as two girls wearing the same outfit, and is often paired with the phrase “twinning is winning.”

But, twinning isn’t just for millennials on Instagram as it’s found its way into the tech sphere.

The term ‘Digital Twin’ is relatively new to many of us and it wouldn’t be a surprise if some had never heard of the concept before, let alone how it might impact Aviation.

A Digital Twin in its simplest form, really is what you would expect. It’s a virtual representation of a physical object, system or process. It’s a real-time simulation, which is leveraging artificial intelligence to effectively mirror its reallife counterpart.

A digital twin will incorporate 3 main data points. It’s historical performance data, it’s present real-time data and expected future data. Those data points enable the digital twin to not just be replicated as a one-off but for it to update and change alongside its real-life twin.

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With a digital twin, you’re effectively looking into the future and anticipating any potential problems that may arise.

This enables corrective measures to be taken ahead of further production, reducing downtime and cost as a result.

Most importantly for Aviation, it empowers safety. Digital Twins can simulate all kinds of situations and reduce the risk of any potential accidents or malfunctions that could occur.

Rolls Royce has made no secret about using Digital Twin technology for the manufacturing of its engines. They proudly state that the technology reduces the need to rely on probability-based techniques to determine when an engine might need maintenance or repair.

This enables them and their customers to benefit from not only predictive but also preventative engine maintenance, greatly reducing aircraft downtime and reliability.

Given the nature of our industry and the need to continuously improve and innovate, it’s very clear that this technology is going to be pivotal to future developments in production.

What do you think? Will twinning be winning for aviation?

IMAGE: AEROSPACE TESTING INTERNATIONAL

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COMMUNITY SPOTLIGHT

EACH EDITION WE ASK 5 QUESTIONS TO A MEMBER OF OUR COMMUNITY, GIVING A UNIQUE INSIGHT INTO THE INDUSTRY

Jeff Jerge Chief of Pearls

1. What made you want to start Oyster Aero?

I've always had the drive to run my own company since stepping into this industry. Beyond that, my real motivation came from wanting to make a meaningful impact on the supply chain.

The sheer amount of surplus material in aerospace is staggering – conservatively speaking around $10 billion worth of inventory sits idle at any given time.

At Oyster Aero, our mission is to help operators, MROs, distributors, traders, and OEMs tap into that value. We’re working to unlock operating margins on the buy side and create direct profits on the sales side.

Every company in the supply chain faces surplus inventory challenges, yet there's no centralized place to access these resources. Buyers are measured on cost and availability. If I can help them achieve their goals while addressing supply chain inefficiencies, it’s a win-win.

Finally, sustainability is a significant motivator for us. Keeping parts in the air rather than sending them to the scrapyard reduces waste and its downstream impact.

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2. How did you come up with the name?

I like to say, "There are pearls in every inventory," you just have to dig a little to find them.

I would have chosen something boring, like "Surplus Inventory Solutions," but credit for the unique name goes to my family. Over dinner one evening, they encouraged me to think creatively, and with my Maryland roots on the Chesapeake Bay, "Oyster" felt fitting. After some brainstorming, we landed on "Oyster Aero," and now I get to be the "Chief of Pearls."

3. What is Oyster Aero's position in the market, are you competing with the other marketplaces and listing services?

Oyster Aero is defining its niche in the market as a true sales platform, distinct from the typical listing services. Our platform is specifically designed to support complex negotiations rather than merely displaying inventory. We emphasize data standardization and bridge gaps both on and off the platform to provide comprehensive, customized solutions. For instance, some clients prefer a subscription or direct sale model, while others rely on us to manage transactions on their behalf. We adapt to the preferences of each company, whether they want their brand to take center stage or prefer Oyster Aero to represent them discreetly.

Additionally, we help suppliers better understand the value of their inventory. While other marketplaces rely on automated supply-demand metrics or averages, we partner with real traders to get up-to-the-minute insights on inventory validity and valuation, which are far more accurate and actionable.

Unlike other platforms that measure success by the volume of parts listed or RFQs received, we define success by the actual movement of materials. For us, it’s about driving meaningful transactions through personal connections and specialized technology. Oyster Aero was built from the ground up with aviation in mind; aviation processes aren’t an afterthought, but the core of our approach.

4. What do you think parts trading looks like in 5 years’ time?

The shift to digital will simplify routine procurement, with AI automating many manual processes. Basic, straightforward purchases will likely move entirely online, and I'm excited about upcoming digital documentation initiatives that will improve traceability.

At Oyster Aero, we’re comfortable taking a slower approach to e-commerce. While other platforms aim to remove people from transactions, we believe surplus material requires a high personal engagement. For the surplus market, we believe automation should assist, not replace, human interaction. People buy from people, and we’re committed to keeping that connection central to our operations.

5. What's on the horizon for Oyster Aero?

We’re launching auctions next, in a democratized format. Unlike traditional online auctions, which are one off events and require building massive packages, our platform will allow sellers to create bundles that fit their specific needs —whether large packages or micro-auctions that align with their sales cycles. It’s also completely integrated with Oyster Aero, so when you might be searching for a component like a set of seats, you can easily see bundles that contain those searched components. We’re also expanding our OEM partnerships and developing tools to enhance communication on essential items like push lists. While our marketplace touches all of the supply chain, the wholesale side of the business really excites us, so we will keep tapping into that market.

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For those new to Digital Flight We help Suppliers & MRO’s successfully navigate today’s digital landscape of emerging technology and software solutions, through essential guidance, insights and strategy.

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DIGITAL DIGEST

BY DIGITAL FLIGHT