Now it all adds up for GE Aerospace
GE Aerospace lands 360-degree visibility into profitability with Vistex Solutions for SAP
"We can now execute our complex contracts more effectively with Vistex Solutions for SAP, eliminating the need for multiple systems and manual processes. This, in turn, helped our organization to optimize productivity and provide an enhanced user experience for our customers and partners."
Vamsi Reddy Konduru
Sr Director, Technical Product Management, GE Aerospace
Overview
The Commercial Engines and Services line of business represents about 70% of GE Aerospace’s revenue. It includes a Maintenance, Repair and Overhaul (MRO) division that processes more than $1 billion worth of complex discounts and royalties in its repair and spares catalog. These were manually processed using homegrown legacy applications and Excel. It included more than 16 different discounts offered at different transactional points. GE Aerospace sought to standardize these and bring them all into one system, streamline the cumbersome pricing and discount management process to enable 360-degree visibility of profitability and enhance the customer experience with claims processing. Because the company began expanding its SAP portfolio across the MRO network, they were looking for a solution that would seamlessly integrate with SAP.
Solution
GE Aerospace selected Vistex Solutions for SAP to gain comprehensive insights into its contracts and to streamline the division’s highly complex business processes. With an ultimate goal of one global, enterprise software platform, using one global process across their repair and spares network, they hoped to significantly reduce multiple data sources by implementing Solutions for SAP to address the repair and spares catalog pricing and rebates, warranties, outbound royalties and finance forecast modeling tools in SAP.
The company would leverage data from Vistex Solutions for SAP as the single source of truth due to its ability to ingest transactional data from non-SAP systems, which would enable full automation of pricing determinations and invoicing for enhanced operational efficiency and productivity across all programs.
Results
Since Vistex Solutions for SAP could streamline the processing of all complex outputs, GE Aerospace was able to eliminate the global need for multiple systems, harmonizing them into one ERP system. By decreasing the number of price delivery systems from 24 to 3, the Commercial Engines and Services division gained unprecedented 360-degree visibility into its profitability, with an ability to run analytics that will help drive a data-driven pricing strategy and improve the bottom line.
Now, they can easily align requirements with partners to determine GE costs and customer quotes and calculate revenue amounts. Automation has increased data accuracy and ensured timely payments of invoices and catalog accuracy by reducing incorrect and missing prices and subsequent manual corrections. By eliminating manual invoicing and pricing updates and avoiding unnecessary deep discounts, they reduced the published price schedules from 68 to 23. In addition, the ability to accurately calculate and process claims faster and resolve disputes more effectively resulted in an enhanced experience for customers and partners.
About
GE Aerospace
GE Aerospace is a world-leading provider of jet and turboprop engines, as well as integrated systems for commercial, military, business and general aviation aircraft.
Headquarters: Evendale, Ohio
Industry: Manufacturing
Products: Jet and marine engines, aviation systems
Revenue: $68 billion in 2023
Locations: Global
Employees: 125,000
Vistex solutions implemented:
Solutions for SAP
- SAP Data Maintenance – Pricing
- SAP Incentive Administration
- SAP Paybacks & Chargebacks