Lufthansa Technik Supply Chain Operations During the Crisis and Going Forward

EACP Virtual B2B – Aerospace Applications & Technology

Lufthansa Technik Supply Chain operations during the crisis and going forward

Eliza Bakardzhieva & Lennart May

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Eliza Bakardzhieva Lennart May Position: Head of Lufhansa Technik Service Center Position: Head of Corporate Procurement Purchasing, Supplier & Contract Management Procurement Intelligence & Cash Management

Lufthansa Technik Lufthansa Technik Sofia, Bulgaria Hamburg, Germany

Maintenance, Repair & Overhaul Network Airlines Eurowings Logistics Catering

The Lufthansa Group The Eurowings brand is Lufthansa Technik Lufthansa Cargo LSG Sky Chefs airlines rank among the the newly established, One of the world’s Leading provider of world’s leading carriers. independent low-cost Leading provider of MRO leading cargo carriers in airline catering and carrier. services in the world’s international air traffic. integrated in-flight airline business. solutions.

3.7 22,745 employees 830 billion euros Revenue 2020 worldwide customers overall (year-end) >500 new contracts in 2020

billion 152 5.2 2.3 euros million euros billion euros purchasing new contract volume volume in 2019 investments in 2020 for 2021 and beyond 2.4 16 billion euros purchasing new customers volume in 2020 in 2020

Lufthansa Technik Supply Chain organization

Corporate procurement Material management and logistics services

Strategic Operational Lufthansa Technik business purchasing units purchasing units segments and product divisions

Lufthansa Technik, Lufthansa Technik, Hamburg Hamburg

Lufthansa Technik Lufthansa Technik Service Center, Sofia Service Center, Sofia

Lufthansa Technik Purchasing units worldwide

RISE @ procurement program Focus on cost Reorganization efficiency Processes harmonization & standardization Lufthansa Technik Clear roles and responsibilities procurement Transparency and performance Armstrong organization control Terms & conditions Clear targets and real time KPIs for all process improvement reaction to crisis & steps and interfaces measures Close cooperation with all our Flexibility suppliers and partners Capacity Constant communication & exchange Empowerment Online performance & situation reviews Synergies

For us, procurement intelligence means using Initial and continuous development of a procurement data analytics to bring our procurement intelligence strategy organization to the next level. Establishment of a procurement intelligence operation With many projects and initiatives we aim to fostering data-driven decision making in procurement increase data quality and transparency

Procurement intelligence shall enable us to: Development of a full impact analysis of procurement contracts on production costs • Become more efficient • Identify process deviations even better Establishment of cross-functional procurement • Identify highest procurement risks intelligence community • Become capable to derive prioritizations and allocation of resources from analysis Further development and implementation of advanced use • Challenge existing KPIs, tools and methods cases including forecasting and simulations

Disclaimer in respect of statements and information. Nothing contained in this publication shall constitute any warranty, guarantee or liability for Lufthansa Technik AG, its subsidiaries and affiliates but is for information purposes only. Accordingly, Lufthansa Technik AG, its subsidiaries and affiliates neither expressly nor con-exclusively accept responsibility or liability for the actuality, accuracy and completeness of the statements and information contained in this publication.