Logistics and Supply Chain Management - Airbus Company

Running Head: AIRBUS COMPANY
Logistics and supply chain management
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AIRBUS COMPANY
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Importance of Logistics and supply chain Management in Airbus
Logistics is all about managing and planning of goods related to its transportation, caring
for the products of the customers and finally supply them to the customer in the assigned time.
Its implementation helps in meeting the demand of the customer as per the product. The effective
implementation of the logistic management in any company helps them to achieve their desired
goal of meeting customer demand and compete better in their market in the long run (Mellat-
Parast & E. Spillan, 2014). The aim of supply chain management is to connect the business to its
market for a clear understanding of the economic value and its competitors.
The relation of the supply chain with logistics is very crucial as effective utilization of
supply chain can easily be achieved if the transportation of the company is well organized hence,
here comes the logistic.
For the aviation industry, the sales of aircraft products have increased in the past three
years and the supply chain is one of the important factors. Airbus has tied up with the logistic
provider to accelerate the transportation process. This has introduced successive consolidation of
the warehouses to the hubs based on regions. The Chief Operation Officer of Airbus has stated
that logistics and supply chain implementation as the leading provider have increased their
delivering power and overall efficiency (Airbus selects lead logistics and transport providers,
2020). The benefits that have been observed by the incorporation of the logistics and supply
chain management are a clear understanding of the Company’s logistics and transport,
maintaining a balance between budget and service requirements of high level and finding
effective solutions to handle supply chain management (Mocenco, 2015). In Airbus, the
movement of the aircraft parts, material required for airplanes are transported to the customers