A Day in the Lives of Andrés Gallego and Jovan, Procurement Managers
We looked into a day in the lives of Andrés Gallego Yuste and Jovan Ilic, Procurement Managers at Jet Aviation Basel. Although they share the same job title, we found out that their typical workdays and responsibilities can be quite different – and we learned a lot about the fascinating field of strategic sourcing along the way.
What is Procurement, and why is it important for a company like Jet Aviation?
Andres: Procurement, simply said, is the process of “buying what you need” to conduct your day-to-day business. If, for example, a certain screw must be installed on a customer aircraft, the work cannot be finished and the aircraft cannot leave the hangar unless someone has previously bought this exact screw. Or when a tire needs to be changed, we save our customers valuable time if we can use a tire that we have in stock because someone from Procurement has bought it in time.
Jovan: Additionally, Procurement also means ensuring that all the goods that we are buying from suppliers for our maintenance or completion operations are delivered on time to ensure that the aircraft’s downtime or delivery timeline is not impacted. This is very important, because delays can trigger costly penalties.
Please tell us about your specific roles and responsibilities in strategic sourcing.
Andres: Strategic sourcing comes from grouping the categories of products that a company is buying in different categories. The idea is to have one specific person with a special skillset focusing on the purchase of products or services in that category. It’s also that person’s responsibility to develop a strategy for cost optimization.
In my role, I manage contracts with the main aircraft OEMs such as Airbus, Boeing, Gulfstream, or Dassault to get the authorization needed to perform cabin modifications or maintenance on these aircraft types. Also, I negotiate contracts for our shops to be able to work on certain products, such as engines (Honeywell, Rolls Royce or Pratt & Whitney), wheels or emergency equipment. We negotiate the annual fees or royalties that we will pay for the authorization to perform such jobs and negotiate discounts on OEM parts. We also push for Jet Aviation to be promoted as a Service Center within the OEM networks.
I also take care of subcontracting some activities that we can’t perform in house, because we either don’t have the capacity, personnel, training, or authorization needed. An example would be the overhaul of specific landing gears.
Jovan: We are also called “Category Managers” because each of us are responsible for a specific category of products or services. In a nutshell, Category Management is a strategic end-to-end process for buying goods and services. It aligns business goals and customer requirements with supply market capability, and it maximizes long-term value for the organization. Category Managers also act as support and enabler for NPI (New Product Introduction) by having a good market oversight and sharing any new supplier developments with our Engineering and Innovation teams.
My specific category within Jet Aviation is Electrical, which is divided by segments such as cables, connectors and lights or more complex systems like in-flight entertainment systems, cabin management systems, satellite communication and avionics covering suppliers such as Honeywell, Collins, or Astronics, and distributors like Air Cost Control or Proponent. It’s my job to ensure that our relations with our main suppliers are contractualized and that they are competitive in their respective areas. Based on our assessments we are redirecting the spend in each of the segments to the most competitive suppliers.
What does a typical day look like for you?
Jovan: I am serving both Maintenance and Completion projects. We have several stakeholders depending on the project we’re involved in, and a typical day could be reviewing contractual terms and conditions and negotiate for a Defense project involving the Defense teams, Legal, and the supplier. Next, I could be meeting with Engineering and a Completion project teams to review the technical specification for new devices to exit a single source situation where the supplier is not delivering on time and with expected quality. In addition, as Andres mentioned already, we support the Maintenance Sales Quotation team for short notice requests if needed.
Andres: On a typical day, I work with many different internal and external customers. For example, we support the Jet Aviation Maintenance Sales Quotation team, providing them with accurate data on pricing and turnaround time. I also work closely with the JBSL Shops to know what their needs are. For example, a license is about to expire, and we need to renew a contract with a supplier or OEM to keep offering our services. Or if they run out of certain material due to a high unplanned demand, we support to get whatever they need as soon as possible.
I also monitor if all contractual commitments are being fulfilled by our suppliers on a daily basis, meaning if parts arrive on time, with the needed quality and at the agreed price. And we always search for new market opportunities or ways to optimize costs.
What do you find the most rewarding?
Andres: I’m an aviation enthusiast, so being near the hangars and near the place where the magic happens is really fulfilling. We may have an “office job”, but working at Jet Aviation allows us to be close to the shop floor and have a better understanding of the impact of our daily work, because we can really see it happening in real time, on-site.
Jovan: I completely agree. We have the huge advantage here that when we find a new product, or if we implement a new strategy, we can see the whole evolution and how all the great ideas from design, engineering, or strategic teams materialize. We just have to walk the hangars or the shop floors. Also, the kid and the tech “nerd” in me really feel being in their element, whether it’s aviation in general or my job here in particular.
What are some challenges you face in your role?
Jovan: One of the challenges we face is matching our operational needs with the suppliers’ capacities. In a world that is constantly in motion and holds many uncertainties, it is difficult to anticipate what is going to happen tomorrow. The aviation supplier market did consolidate over the last few years to less and less players because of many mergers and acquisitions, creating monopolies in some areas. In this situation, it’s key to stay alert and very flexible in order to create savings and secure the availability of parts.
Andres: Procurement departments are always under constant pressure to decrease purchasing costs, so the company can be more competitive. This should be done while quality is being maintained or improved and supplies arrive on time. That’s why we constantly investigate new ways for cost optimization, getting better discounts, etc. The toughest challenges can come from dealing with large corporations, such as Airbus, Collins, Safran, etc. They have a huge market share and our spend represents a very small fraction of their revenue. Getting their attention is often difficult, but we are quite good at that.
When comparing your roles, what are some key similarities and differences?
Andres: Our roles our quite similar, the main difference is the niche of products we take care off. My job impacts mainly the maintenance business of Jet Aviation, and Jovan can be more involved with completions. But each of us still supports both lines of business.
Jovan: Exactly, there are differences when it comes to technology or timelines, but strategically our roles are similar, and we are using the same tools and processes to reach our goals.
What advice would you have for someone who is interested in a career like yours?
Jovan: I would say curiosity is very important. And a basic technical understanding is helpful to get a grasp on the products and the technology behind them. You should be solution-oriented and able to withstand the pressure of multiple projects and stakeholders without losing sight of the main goals. In few words: Follow the music, not the noise!
Andres: Stay curious and keep searching for creative ways to overcome challenges. Be resilient and don’t be afraid of dealing with the big players in the aviation industry.
