CS-12 · Fuel Procurement & Supply Chain

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Process Flow Diagram (BPMN)

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L4 Process Steps

Step	Step Name	Role / Swim Lane	System	Input	Output	KPI	Dec?	Exc?
Phase 1 1.1	Extract fuel volume forecast from flight schedule	Fuel Planning Analyst	Amadeus SkyWORKS	Approved flight schedule (SSIM), fleet assignment by station	Station-level fuel volume forecast (US gallons by month, 12-month horizon)	Forecast accuracy ≥95% vs actual uplift volume at month-end	N	N
1.2	Model price scenarios and set hedging target	Fuel Risk Manager	OpenLink Endur	Fuel volume forecast, Platts jet fuel spot prices, 12-month forward curve	Hedge ratio recommendation (% of forward volume), scenario P&L analysis	Hedge ratio within board-approved policy band of 30–70% of forward 12-month volume	Y	N
1.3	Submit annual fuel budget to Finance	Director of Fuel Procurement	SAP S/4HANA Finance (CO-PA)	Approved volume forecast, hedged price scenarios, prior-year actuals	Approved fuel OPEX budget by cost centre and quarter	Budget variance ≤±5% vs actual fuel cost at year-end	N	N
Phase 2 2.1	Evaluate and qualify fuel suppliers by station	Fuel Procurement Manager	SAP Ariba Supplier Lifecycle Management	Station list, ICAO airport codes, DEF STAN 91-091 quality standards, supplier capability submissions	Approved supplier register by airport with qualification status	≥2 qualified suppliers at every Tier-1 hub; 100% supplier compliance with ASTM D1655 specification	Y	Y
2.2	Issue RFQ and evaluate competitive fuel bids	Fuel Procurement Manager	SAP Ariba Sourcing	Volume forecast by station, approved supplier register, pricing reference (Platts Jet A)	Scored bid comparison matrix, recommended award by station	RFQ cycle time ≤21 calendar days; minimum 3 bids received per major hub station	N	N
2.3	Negotiate and execute fuel supply agreement	Director of Fuel Procurement	SAP Ariba Contracts	Bid comparison matrix, legal terms template, approved supplier, volume commitments	Signed fuel supply agreement (price formula, volume commitment, quality specs, liability caps)	Contract coverage ≥90% of annual volume; contract execution ≤30 days from award decision	Y	N
Phase 3 3.1	Generate daily fuel uplift orders from flight ops	Fuel Operations Coordinator	FuelPlus	Day-of flight plan (Jeppesen FliteDeck), fuel release quantities, tankering policy parameters	Fuel uplift orders by flight number and station for next 24 hours	Order accuracy ≥99.5% (uplift quantity within ±2% of flight plan requirement); order generation completed ≥4 hours before first departure	N	N
3.2	Evaluate tankering opportunity vs payload penalty	Fuel Operations Coordinator	FuelPlus Tankering Module	Station fuel price differentials, aircraft weight/balance constraints (MTOW), cost-per-seat-mile model	Tankering go/no-go decision with estimated cost saving per flight	Tankering savings ≥$0.01/US gallon average across network; zero overweight departure events attributable to tankering	Y	N
3.3	Execute purchase order and payment authorisation	Fuel Procurement Manager	SAP Ariba (Purchase Orders) + SAP S/4HANA Finance (AP)	Approved uplift orders, active supply contract reference, station fuel card limits	Confirmed PO, EFT payment instruction or fuel card charge authorisation	PO-to-supplier-confirmation cycle ≤4 hours for same-day uplifts; zero declined fuel card transactions	N	Y
Phase 4 4.1	Monitor real-time fuel delivery at departure gate	Into-Plane Agent	ACARS (SITA) + FuelPlus	Fuel truck arrival notification, loadsheet, flight plan fuel quantity (block fuel + reserve)	Uplift completion confirmation, fuel density and quantity record (litres and kg)	Fuelling completion ≥30 minutes before scheduled departure; zero misfuel incidents	N	Y
4.2	Validate fuel quality certificate at delivery	Into-Plane Agent	Aviation Quality Database (AQD)	Fuel delivery note, batch certificate of analysis, DEF STAN 91-091 / ASTM D1655 spec sheet	Approved fuel release certificate or hold notice with reason code	100% batch documentation compliance before uplift; zero fuel contamination incidents per year	Y	Y
4.3	Manage fuel shortage or delivery failure exception	Fuel Operations Coordinator	FuelPlus + SITA Airport Management System (AMS)	Shortage notification from into-plane agent, alternate supplier register, flight departure window	Emergency fuel order confirmation or flight departure hold decision with ATC notification	Shortage resolution ≤45 minutes; zero flight cancellations attributable to fuel unavailability	Y	Y
Phase 5 5.1	3-way match fuel invoice to uplift and PO	Fuel Accounting Analyst	SAP S/4HANA Finance (MM-IV) + FuelPlus	Supplier invoice, FuelPlus uplift record, approved PO	Matched invoice cleared for payment or discrepancy flag with reason	Automated 3-way match rate ≥97%; discrepancy identification within 2 business days of invoice receipt	Y	Y
5.2	Resolve invoice discrepancy with fuel supplier	Fuel Accounting Analyst	SAP Ariba Supplier Collaboration	Discrepancy report, original supplier invoice, FuelPlus uplift records, PO	Approved credit note or revised invoice accepted into SAP FI-AP	Discrepancy recovery rate ≥95% within 30 days; average credit recovery ≥$0.005/gallon on disputed volume	N	N
5.3	Process approved fuel payment and post to GL	Accounts Payable Specialist	SAP S/4HANA Finance (FI-AP)	Approved invoice, contract payment terms, supplier bank details, FX daily rate	Payment run confirmation, GL posting to Fuel OPEX cost centre	On-time payment rate ≥98% per contract terms; zero duplicate payment incidents per quarter	N	N
Phase 6 6.1	Mark-to-market hedge positions and test effectiveness	Fuel Risk Manager	OpenLink Endur	Platts jet fuel spot price, 12-month forward curve, open hedge position register	Daily MTM P&L report, hedge effectiveness ratio (prospective and retrospective)	Hedge effectiveness ≥80% (IFRS 9 hedge accounting qualification threshold); MTM report delivered by 09:00 each trading day	Y	Y
6.2	Report fuel cost per ASM to senior leadership	Director of Fuel Procurement	Tableau + SAP S/4HANA Finance (CO-PA)	Monthly uplift actuals (FuelPlus), invoice data (SAP FI-AP), hedge P&L (OpenLink), budget (SAP CO-PA)	Fuel cost per available seat mile (CASM) report, budget variance analysis, rolling 12-month forecast	Fuel CASM ≤$0.055; variance report published within 5 business days of month-end close	N	N

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Process Attributes

Identification

Process IDCS-12

L1 DomainCorporate Support Functions

L2 ProcessProcurement & Supply Chain

L3 NameFuel Procurement & Supply Chain

L4 Steps17 across 6 phases

Decision Gates8 (all with iteration loops)

Exceptions7 documented

Swim Lanes (Roles)

Fuel Planning Analyst

Fuel Risk Manager

Director of Fuel Procurement

Fuel Procurement Manager

Fuel Operations Coordinator

Into-Plane Agent

Fuel Accounting Analyst

Accounts Payable Specialist

Systems & Tools

Amadeus SkyWORKSOpenLink EndurSAP S/4HANA Finance (CO-PA)SAP Ariba Supplier Lifecycle ManagementSAP Ariba SourcingSAP Ariba ContractsFuelPlusFuelPlus Tankering ModuleSAP Ariba (Purchase Orders) + SAP S/4HANA Finance (AP)ACARS (SITA) + FuelPlusAviation Quality Database (AQD)FuelPlus + SITA Airport Management System (AMS)SAP S/4HANA Finance (MM-IV) + FuelPlusSAP Ariba Supplier CollaborationSAP S/4HANA Finance (FI-AP)Tableau + SAP S/4HANA Finance (CO-PA)

Key Performance Indicators

Extract fuel volume forecast from flight scheduleForecast accuracy ≥95% vs actual uplift volume at month-end

Model price scenarios and set hedging targetHedge ratio within board-approved policy band of 30–70% of forward 12-month volume

Submit annual fuel budget to FinanceBudget variance ≤±5% vs actual fuel cost at year-end

Evaluate and qualify fuel suppliers by station≥2 qualified suppliers at every Tier-1 hub; 100% supplier compliance with ASTM D1655 specification

Issue RFQ and evaluate competitive fuel bidsRFQ cycle time ≤21 calendar days; minimum 3 bids received per major hub station

Negotiate and execute fuel supply agreementContract coverage ≥90% of annual volume; contract execution ≤30 days from award decision

Generate daily fuel uplift orders from flight opsOrder accuracy ≥99.5% (uplift quantity within ±2% of flight plan requirement); order generation completed ≥4 hours before first departure

Evaluate tankering opportunity vs payload penaltyTankering savings ≥$0.01/US gallon average across network; zero overweight departure events attributable to tankering

Airline-Specific Risks & Pain Points

Schedule changes post-freeze invalidate fuel pre-purchases with no automated re-forecast trigger in SkyWORKS; manual rework required for each schedule revision

Jet fuel crack spread volatility (2022: +180% YoY) can force hedge ratio outside approved bands requiring board escalation; no automated alert in OpenLink Endur

Annual budget locked in Q4 but jet fuel prices move daily; SAP CO-PA budget version does not auto-update with market rate changes, causing stale variance reporting throughout the year

Remote and international stations frequently have a single into-plane agent with no qualified alternative; supply disruption at these stations forces flight hold with no automated contingency in SAP Ariba

Fuel suppliers submit non-standard pricing structures (flat-rate, index-linked, spot differential) making direct price comparison difficult; no normalisation tool in SAP Ariba Sourcing for jet fuel indices

Into-plane agent contracts are separate from fuel supply contracts at most airports — coordinating two parallel contract cycles per station doubles procurement workload and creates liability gap periods

Inputs / Outputs

Primary InputApproved flight schedule (SSIM), fleet assignment by station

Primary OutputFuel cost per available seat mile (CASM) report, budget variance analysis, rolling 12-month forecast

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