1. Technology and The Inventory Challenge Embracing Technology for Successful Supply Chain Management Gary Hochman Vice President of Marketing & Business Development November 7, 2010 Westin Bayshore Hotel Vancouver, BC Air Transport Association of Canada Boca Raton, Florida www.Partsbase.com

2. Agenda 2010 Aviation Suppliers Association 1. Are you Inventory Challenged? 2. Inventory: Who has Control? 3.Technology Issues; Buyers Side 4.Technology Issues; Sellers Side 5.Solutions for Success 6.What Works ? 7.Question and Answer 8.Thank You

3.  RFID (Radio Frequency Identification), Implementation not affordable  Limitations of Technology  End User Generation Gap  Having Paper Backup/Data Warehousing  Technology used by Industry vs. Technology used by Transport Canada (Compliance Issues)  Current Technologies for managing supply chain are being tested  Need for transparency across all technology Technology Challenges for Supply Chain 2010 Aviation Suppliers Association

4.  Quality Assurance  Compliance  Purchasing Teams  Material Sales  3 rd Party Relationships Inventory: Who Has Control? 2010 Aviation Suppliers Association

5. Supplier/End User Identification-“Buyer Beware” Real Time Inventory vs. Delayed Content “In House” material vs. “Pooled” Industry material Stock Levels: Demand vs. Supply Ghost Inventory Technology Issues for Buyers 2010 Aviation Suppliers Association

6. Market Intelligence: Where is the Demand? In House Analytics Accuracy of PN (part number) Data Buyer Assurance and confirming End User Identification Workload vs. Man Power Technology Issues for Sellers 2010 Aviation Suppliers Association

7. Cost savings on yearly inventory purchases Reduction in long lead times from OEM’s Customization of Preferred Vendor Networks Identification of OEM Parts through cross referencing tools Identification of PMA Parts through cross referencing tools Repair & Overhaul Company Searching Tracking of Key Distributors 2009 Air Transport Association of Canada Benefits for Purchasing

8. Liquidation of Surplus inventories Market Intelligence Reports with Demand Info Inventory Management Tools Access to new revenue streams through Government Solicitations Services Repair & Overhaul Inventory Tools with reverse proposals Tracking of Distributor Performance Increase in Sales both Domestic & Global 2009 Air Transport Association of Canada Benefits for Sellers of Inventory

9.  Software Platforms A. PROS-Application Driven, customizable, supports 3 rd party applications B. CONS-Higher cost per seat, need hardware to support, scalability  Web Based Platforms (WBP) A. PROS-Flexibility of Use, Easy to Upgrade as new technology develops, lower cost per seat, standardization, industry analytics B.CONS-Bandwidth issues, compatibility, firewall issues  Hardware (Desktop/Laptop/Tablet) A.PROS-local memory, hard drive storage, processor speeds B.CONS-cost of upgrades, expiration of technology, compatibility of software platforms (versions)  Wireless/Mobile Devices A.PROS-easy access, rapid response, compatible with WBP’s B.CONS-”DEAD Zones”, memory capacity, compatibility issues with older technologies Solutions Provided 2010 Aviation Suppliers Association

10. What Works! Airline Distributor MRO ERP SOFTWARE DATABASE OF MATERIAL AVAILABLE FOR USE DATABASE OF SURPLIS MATERIAL AVAILABLE FOR SALE INTEGRATED WITH WBP FOR SALES INTEGRATED WITH WBP FOR PROCUREMENT ACCESS WBP FOR PROC/SALES ON MOBILE DEVICES- BLACKBERRY, IPHONE, DROID 2010 Aviation Suppliers Association  Companies will be more successful in managing the flow of material/inventory with a “multi-prong” approach using ERP Software integrated with a Web Based Platform that can be accessed from various Mobile Devices  Using a multi-prong approach will allows companies to gain “real time” material information which is critical for rapid response and Quality Assurance  Companies can clear up balance sheets with Market Intelligence gained form their WBP and use to create a more effective sales strategy by identifying new channels for growth REAL TIME UPDATES MARKET INTELLIGENCE

11. Q & A 2010 Aviation Suppliers Association

12. Thank You 2010 Aviation Suppliers Association