Aviall Deploys Siebel eBusiness Applications as Technology Centerpiece for Corporate Transformation
SAN MATEO, Calif.--May 28, 2003--Siebel eBusiness Applications Play Integral Role in Taking
Leading Aerospace After-Market Parts and Services Company from $460 Million to $900 Million in Annual Sales Run Rate in Three Years
Siebel Systems, Inc. , a leading provider of multichannel eBusiness applications software, today announced that Aviall Services, Inc. has significantly benefited from its implementation of Siebel eBusiness Applications as the cornerstone of its corporate growth strategy. Siebel eBusiness Applications have played a central role in Aviall's transformation into the world's largest independent provider of new aviation parts and related after-market services in commercial, military, and general aviation sectors.
Aviall's deployment of Siebel eBusiness Applications, including Siebel Sales and Siebel Call Center, in conjunction with other applications, has resulted in a revenue run rate increase of nearly 100 percent, a sales productivity increase of 200 percent with sales calls and processed orders, a 20 to 30 percent overall improvement in customer satisfaction, a 50 percent reduction in aircraft on ground (AOG) response cycle time, and an accuracy rate of better than 99 percent for orders going out of the warehouse.
Aviall Chief Executive Officer, President, and Chairman Paul Fulchino launched the business transformation strategy in 2000 in response to increasing competition in the aerospace after-market component parts industry. At that time, Aviall was focused solely on parts distribution and faced shrinking market share and declining sales. Fulchino had a vision of Aviall becoming a value-added partner to its OEM suppliers such as Rolls-Royce and operating a customer-centric, service-excellence environment by putting in place a world-class team, world-class infrastructure and processes, and world-class technology.
"One of our primary success attributes is technology," said Fulchino. "We have taken technology and literally leap-frogged it in two years from being comparable and sustainable in the industry to being one that both OEMs and customers say is far superior--all to make our customers' lives easier and better and for more efficiency in doing business."
"The fruits of our labor are paying off," said Joe Lacik, Vice President, Information Services, Aviall. "Our revenue run rate has doubled in the past three years, and the profits have more than tripled. The Siebel CRM solution was a key piece in this success because it enabled us to integrate our field sales force and call centers and give them the tools they need to do their jobs more effectively and efficiently."
Because the transformation required a major shift in corporate culture across a diverse sales force and more than 40 different call center locations globally, Aviall chose to take a phased implementation approach. In the initial phase, which took approximately four months, Aviall deployed Siebel Sales to its field sales representatives, then Siebel Call Center to representatives in the company's 40 worldwide customer service centers. The advanced Siebel CRM solution has improved sales and service effectiveness through better management of sales territories, accounts and call schedules, and automated sales proposals and presentations. It has enabled Aviall to measure productivity and gain valuable product-based sales, service, and marketing intelligence.
The next phase consisted of a project that involved deploying Siebel Sales and Siebel Call Center customer order management capabilities to drive increased efficiency. Through the streamlined process and easier navigation, the Siebel solution has given the sales force and customer service representatives an easier, faster means of entering orders than was previously available -- on the scale of 80 percent fewer steps in the process.
To complete its customer service transformation, Aviall sought to provide its sales and service representatives with a single dashboard of customer, product, and pricing information. The company achieved this final phase by tightly integrating Siebel eBusiness Applications with Xelus for forecasting, planning, and inventory management; Catalyst for warehouse management and inventory control; and Lawson for enterprise resource management.
Through Siebel eBusiness Applications, Aviall is now providing its approximately 200 OEM suppliers and about 17,000 customer operators with a superior customer-focused service experience for aviation parts and related after-market services. This has given Aviall a significant competitive edge, enabling the company to attract new customers and increase market share even in a declining market.
"Our ability to provide these services has been an important factor in obtaining several important OEM supplier contracts," Lacik said. "For example, we demonstrated our systems, including the Siebel eBusiness Applications, in our initial sales call at Rolls-Royce. Their reaction was that they could take advantage of our technology investment and our channel. No other company in the general aviation after-market parts and services space can come close to providing this kind of service capability."
About Aviall
Aviall, Inc. is a leading solutions provider of after-market supply-chain management services for the aviation and marine industries. As the world's largest independent provider of new aviation parts and related after-market services, the Aviall Services business unit markets and distributes products for approximately 200 manufacturers and offers approximately 250,000 catalog items from customer service centers around the world. Aviall Services also supports a full line of aviation batteries, hoses, wheels and brake services.
About Siebel Systems
Siebel Systems, Inc. is a leading provider of eBusiness applications software, enabling corporations to sell to, market to, and serve customers across multiple channels and lines of business. With more than 3,500 customers worldwide, Siebel Systems provides organizations with a proven set of industry-specific best practices, CRM applications, and business processes, empowering them to consistently deliver superior customer experiences and establish more profitable customer relationships. Siebel Systems' sales and service facilities are located in more than 28 countries.
Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. The success of the agreements and products described above and the future operating results of Siebel Systems may differ from the results discussed or forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with new versions and new products, the availability of Siebel Systems' products and services, implementation of products and services, existence of errors or defects in products, rapid technological change, dependence on the Internet, significant current and expected additional competition and the need to continue to expand product distribution and services offerings. Further information on potential factors that could affect the financial results of Siebel Systems are included in Siebel Systems' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Siebel Systems assumes no obligation to update the information in this press release.
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