Case Study
Jet Support Services Inc. (JSSI)
Innovative portal enhances staff and client experience
Published: April 19, 2007
 
 
Jet Support Services Inc. (JSSI) wanted to expand its aircraft maintenance services business around the world, but its employees and customers were hampered by labor-intensive and disjointed processes. A series of labor-intensive accounting processes not only hindered efficiency, but also required JSSI’s customers to use antiquated methods to communicate with the company. Implementation of Microsoft software enabled employees to increase revenues and profits by expanding operations to Europe, Africa, and South America. An automated solution to the company’s accounting function reduced or eliminated certain costs, improved productivity, and controlled operating expenses. In addition, the new system enabled the company to provide an online portal to enable customers to send and receive information about their aircraft, improving customer service.

 
Organization Profile
Jet Support Services Inc. (JSSI) is a Chicago-based company providing aircraft repair programs. The privately held firm has around U.S.$120 million in annual revenues from private as well as commercial aircraft owners around the world.
 
Business Situation
Labor-intensive financial processes precluded a global expansion of JSSI’s customer base. In addition, financial, technical, and sales staff were hampered by a lack of integration of existing systems.
 

Situation

As a provider of aircraft maintenance services, JSSI offers private and corporate customers a variety of options to manage the cost of maintaining their jets or helicopters. Customers pay for engine and airframe maintenance monthly, based on hours flown and other variables.

Our business process had outgrown our computer system. We needed to make major changes.
John LeBeau
Director of Financial Systems
JSSI

JSSI’s business model is unusual in the aviation industry but designed to provide the ultimate in flexibility for its customers. The financial model is similar to the operation of health-maintenance organizations--patients pay a fixed, monthly rate for traditional visits to the doctor, and receive reduced rates for major procedures. JSSI’s financial service helps amortize maintenance costs by regulating the financial impact on customers. This model also makes maintenance expenses more predictable.

However, the process JSSI used to collect the required aircraft use information from customers was prone to error and inefficiency. Customers received 12 coupons annually, one for each month. They would submit a coupon by mail each month with the number of the hours flown to JSSI’s bank, which would in turn send payment information to JSSI’s accounting department on a daily basis. Aircraft maintenance schedules are based on hours flown, not miles.

JSSI staff would key in the information, generate the invoices, and then manually apply the pre-paid funds to the accounts. However, customers frequently erred in reporting the number of hours flown, precipitating a lot of back-and-forth dialog. This customer-billing process required anywhere from 6 to 16 person-hours per day, according to John LeBeau, JSSI’s Director of Financial Systems.

Another reason for the lengthy billing process was the disparate nature of JSSI’s technology infrastructure. Employees had to access three separate, and not integrated, applications. The company has a legacy accounting system (which was limited to a single user at a time), a database, and a contact management system.

The lack of integration hampered staff throughout the organization. “Sometimes an employee had to go to more than one application to get a true picture of the customers’ balance,” explains Sonya Taitt, a manager in the IT department and Program Director for the MyJSSI online portal.

For example, technical staff only had access to the database application, so they would have to call the accounting department to determine if there was a credit hold on the account, Tate adds. Someone in the accounting department would have to stop what they were doing to get the answer.

The inefficient processes also inhibited JSSI’s growth. Lucrative markets in the Middle East and South America were off the radar screen for a company dependent on having coupons delivered through the mail. JSSI’s executives realized they needed a system that would enable employees to be more productive and to serve customers and partners better. “Our business process had outgrown our computer system,” says LeBeau. “We needed to make major changes.”

Solution

In the first stage of revamping of JSSI’s technology infrastructure and processes, JSSI deployed Microsoft Dynamics™ GP, Microsoft BizTalk® Server, and Microsoft SQL Server™ to consolidate customer information into a single repository. This solved the lack of integration problem.

Once JSSI had an integrated back-end to monitor and track customer accounts, it deployed a new front-end based on Business Portal in Microsoft Dynamics GP. In this second phase, which has already been completed, the Web application enables customers to submit flight data online as well as obtain information about their aircraft maintenance and account status. Because customers can access data through the Web interface, “now our customers can be anywhere in the world,” says LeBeau. That’s helped JSSI expand its global presence.

The third phase of the revitalization of the company begins in 2007. LeBeau will deploy Microsoft Dynamics CRM, and additional modules of BizTalk Server and Microsoft Dynamics, to eliminate most paper invoices.

Benefits

Expansion into New Markets
The customer portal—MyJSSI-- is a huge success. The JSSI sales teams were able to expand the company’s service area to Europe, Africa, and South America because customers can now access their files via the Internet portal. This has resulted in a 20 percent increase in annual revenues for the privately held firm, according to LeBeau. What’s more, the productivity gains from automating the mileage reporting kept operating costs level.

In addition, the customer portal is electronically processing almost all of the company’s revenues. MyJSSI receives more than 2,400 unique visits and 100,000 page views each month, a strong endorsement from its more than 900 customers.

Reduction in Invoice Administration
Empowering the financial staff yielded other benefits to JSSI as well. LeBeau says the time it takes to create or pay invoices has gone from 10 days to 10 seconds per invoice, thanks to the ease-of-use of the Windows operating system interface and the integration of functions within Microsoft Dynamics GP, SQL Server, and BizTalk Server. Furthermore, LeBeau estimates JSSI has saved at least $60,000 annually in reduced bank processing costs.

Reduced Inventory Costs
The maintenance managers are now able to use the forecasting features of the solution to better predict the demand for replacement parts, reducing inventory costs without overspending. “Our actuarial information is closer to reality,” explains LeBeau. “We use the data in the system to project what parts we’ll need for routine maintenance, and we can buy five at once to get a discount.”

More Accurate Forecasting
JSSI will be deploying more Microsoft software to gain greater efficiencies. “We will take the paper out of the invoicing system, which means an invoice can be in the system in as little as a day,” explains LeBeau. “That gives us the ability to pay sooner, which means we could negotiate discounts for early payments.”

Increased Satisfaction, Productivity
Other benefits have accrued to the JSSI organization, too. Taitt says job satisfaction has increased in the IT department because of the process transparency provided by an integrated system. “Our employees see all the data in front of them, and they understand the process,” she says.

Furthermore, the new system has enabled JSSI employees to get closer to their customers and suppliers—literally. LeBeau says the Tech Services Department has been able to make more customer and vendor visits, which has improved relationships.

John LeBeau
John LeBeau,
Director of
Financial Systems,
JSSI
Executive Biography

John LeBeau, Director of Financial Systems at JSSI, has been at the company for more than four years. He formerly worked as a Great Plains implementation consultant at Lanac Technology, Chicago, Illinois. He is a CPA and MCSE and has a Bachelor’s degree in accounting from the University of Incarnate Word in San Antonio, Texas.


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