Innovation in Logistics: Magnetic MRO's AI-based purchasing system received the title of Estonian Logistics Innovation Act of the Year 2023
At the Annual Estonian Logistics Conference, Magnetic MRO was awarded with the title of Logistics Innovation Act of the Year. The award was brought home by the company's innovative AI-based purchase management system, which has improved the company's logistics processes, reducing both time and material costs.
Magnetic MRO, a part of the global aviation company Magnetic Group, is well-recognized in the international aviation arena thanks to its 450 specialists and experts working in the hangars of Tallinn Airport. The company offers comprehensive maintenance and repair services for aircraft, engines and aviation components.
The company's COO, Jan Kotka, stated that the recovery of aviation after COVID-19 and the availability issues in materials supply chain have brought challenges for all aviation companies. The AI-based purchasing management system, implemented together with SkySelect, is able to optimize the search for materials and the ordering process, reducing the process-related time from 7 days to 5 days.
"The Estonian Logistics Innovation Act of the Year title is a recognition of our continuous innovation and commitment. This is a clear sign that we are on the right track, offering a solution that helps our employees and improves our customer satisfaction," commented Kotka.
The automated solution, integrated into the company's ERP system, uses years of business data to forecast demand and material availability. This not only increases efficiency but also decreases material costs by 5-10%, helping employees to focus on the core business.
Magnetic MRO continues to develop its systems with the goal of reducing order time to four days while maintaining high quality and reliability.
