Strategic Supply Chain Management and Logistics

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STRATEGIC SUPPLY
CHAIN MANAGEMENT
AND LOGISTICS

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EXECUTIVE SUMMARY-
This report has given a brief description of the supply chain of Emirates (airline) and where
the supply chain of this company needs improvement, where they are lacking and what
strategies is required which will help the company to improve and expand their operations.
The importance of supply chain has been highlighted in this report. It states that in order to
meet the demand and predict the right measures the company will need to manage the supply
chain with the help of effective measures.
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Table of Contents
INTRODUCTION.......................................................................................................................4
LO 1.............................................................................................................................................4
1.1 Importance of effective supply chain management in achieving organizational
objectives............................................................................................................................4
1.2 Link between supply chain management and business functions in an organisation. .6
1.3 key drivers for achieving an integrated supply chain strategy in an organization.......7
LO 2.............................................................................................................................................8
2.1 Effectiveness of strategies used by an organisation to maintain supplier relationships8
2.2 Information technology to create strategies ................................................................9
2.3 systems to maintain an organization’s relationship with its suppliers.......................10
LO 3...........................................................................................................................................11
3.1 Information Technology Integration Of Different Parts Of Supply Chain................11
3.2 Information Technology has Contributed to Management of Supply Chain.............12
3.3 Effectiveness of Information Technology in Managing Supply Chain......................14
LO 4...........................................................................................................................................14
4.1 Role of Logistics in Supply Chain Management in an Organization.........................14
4.2 Procurement Practices................................................................................................16
4.3 Improvement of logistics and procurement practices.................................................17
LO 5...........................................................................................................................................18
5.1 Strategy to improve an organization's supply chain..................................................18
5.2 supply chain improvement strategy will benefit overall business performance in an
organization......................................................................................................................19
5.3 Overcoming the barriers while implementing the supply chain improvement strategy20
CONCLUSION..........................................................................................................................21
REFERENCES..........................................................................................................................22
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INTRODUCTION
Supply chain management is an overarching concept that links together multiple
operations of a company to achieve competitive advantage. While logistics refers to the
movement, storage, and flow of goods, services and information within its overall process
of supply chain. Emirates is a state-owned airline based in Garhoud, Dubai, United Arab
Emirates. This airline is a subsidiary of The Emirates Group, which is owned by the
government of Dubai's Investment Corporation of Dubai. It is the largest company of airline
dealing in Middle East who facilitates around 3,600 flights per week from the international
airport of Dubai. They have expanded their services in 150 cities that is in 80 countries. This
report describes the importance of effective supply chain management for airline industry and
its role in achievement of business objectives, link between supply chain, drivers for achieving
supply chain, effectiveness of strategy and system of information technology used in the
supply chain, role of logistics in the company, improvement of logistics and overcoming the
barriers while implementing the strategy.
LO 1
1.1 Importance of effective supply chain management in achieving organizational objectives
Supply chain is a network between the suppliers and the company so that the products
can reach to the final buyer or the company in time without any issue.
Organizational objectives-
Objective of the company is to deliver the highest quality of service among their
competitors and the industry of aviation in order to reach the goal of providing satisfaction to
the consumers with the help of using innovative methods.
Boost customer service-
Customers expect the delivery of products in the right quantity and quality so that they
can be assorted in a correct manner. They expect that the product must be delivered to them by
the company at the right location. Apart from this company must never miss the deadline of
the delivery of product so that they can maintain the level of customer satisfaction. After that
they expect that the company must provide them with the facility of proper after sales support
so that the products they have bought can meet the standard of quality check in a timely
manner (Mangan and Lalwani, 2016). Airline industry has to greet people at the time of

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checking in and thank them at the time of checking out to choose their company. Apart from
that they need to keep a check over the things which are required by the people during the
flight which is concerned with hospitality.
Reduction in Cost of Operating-
Supply chain helps the company to deliver those products in time which are expensive
so that they can avoid the cost of holding the inventory in store which is sometimes longer
than their expectations. It also helps the people and companies who deal in manufacturing.
The supply chain of management helps the companies such as Emirates to deliver the
materials which are required to make the flight successful. Any shutdown can cost the
company around $10,000 per minute. If the flight is delayed due to not reaching of resources
on time then the company will have to incur huge losses. It helps to decrease the cost of
supply chain by meeting the expected goals of the company. It helps the company to become
more efficient in handling their operations (Schönsleben, 2018). For instance food which is
required during the flight and the resources to prepare the meal other than that requirements
for the safety of people so that airline can provide the people with measures in case of
emergency.
Improves the position of the company related to financial aspects-
It helps the company to increase the level of profit as it reduces the cost of supply
chain. For instance people eat on flights so if the cost of the supply chain for that factor is
decreased just by 1 per cent then it will save the company a lot of money in the long run.
Emirates value their managers of supply chain as it helps to reduce the factor of fixed assets
and the vehicles used for transporting in the chain of supply. For instance if the company has
10 warehouses the experts and managers of supply chain will help them to reduce it to 5 by
redesigning it so that they can meet the demand and increase the overall profit of the company.
It helps companies such as Emirates to increase the flow of cash by selling more of their
services (Grant, Trautrims and Wong, 2017). Supply chain helps the industry to save and
reduce the cost of enabling the operations. It is a major factor as the success of the company
depends on it.
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1.2 Link between supply chain management and business functions in an organisation.
In order to maintain the balance between demand and supply Emirates needs to plan
and coordinate with the sales force, segment the base of customers and maintain some stock
for safety.
Demand is increasing on a global level, people before taking travelling from airlines
are expecting better quality of services in low prices. For instance, there are many airlines who
provides their services at low cost but Emirates is a premium class airline which targets only
premium class customers. Other people also want to try the experience of airlines at
reasonable prices but the development and the services offered charges a high amount. This is
where supply chain of management helps the company to reduce the prices of products with
increase in overall profits, as this would help in enhancing customer relationship by reducing
operational cost. The role of global supply chain management compromises with following
functions in aviation industry.
Purchasing-
Every company needs to acquire the raw materials such as fuel, batteries, goods related
with mechanical use for the proper service of flight. All of this is done with maintaining the
coordination of suppliers and ensure the company that the materials bought by them will be
reached to them on time.
Operations-
This department of the company is concerned with the planning and forecasting of
demand. Before making the purchase orders which are required by the company they need to
anticipate and analyse the requirement according to the distance of travel and the seats booked
in the flight so that nothing extra is ordered which would lead to waste for the company. If the
goods ordered are more than company will have to handle the load of excess cost of inventory
and if the order made by them is small in quantity then they will not be able to meet the
demand of customers which will be a loss for the company. This is the reason why this tool is
an effective measure for the company (Das and Nayak, 2017).
Management of Resources-
Every company such as Emirates has to deal with the factor of technology, labour, time
and raw materials as all of them are required. Therefore, management of Emirates airline
mainly concerns on ensuring that all the processes must conduct appropriately.. It includes
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decision for allocation of resources, at the right place and right time so that the cost of services
can be reduced as well as can be used optimally.
1.3 key drivers for achieving an integrated supply chain strategy in an organization
Supply chain helps the industry of aviation to manage the level of inventory, helps in
decreasing the prices which regards to maintenance, maintain the record of accuracy of
inventory and deliver quality service.
Production-
This driver states that in order to meet the demand of customers, management of
Emirates airlines need to concern on its production process first. The Procurement and
Operations Department require to forecast the demand of customers and facilitate higher
quality services to meet. For this process, Emirates has developed“Emirates Engineering’ for
maintaining the quality assurance. Along with this, it also restructures the procurement,
operations as well as logistics aspects to improve production. Companies need to enable and
add more flights so that they can increase their level of capacity and use the technique which
is suitable according to their needs and demand. Company can do the production in plants
which are small so that they can meet the requirements of customers who are important to
them (Sindi and Roe, 2017).
Inventory-
Products are stored by the company which are required during the flight at a fixed
location so that they can make them available whenever it is needed by the customers during
the flight. Products such as spare parts, batteries, fuels, equipment which are required for
safety such as life jacket and meals which are required during the flight. It will help the
company to save the time and money as in case of emergency it takes a lot of money. In order
to increase the level of efficiency company needs to stop putting the things which requires
time to sell or are not frequent in sales as compared to other. It will help the company to save
cost and get the benefit of economies of scale (Hsu, Tan and Mohamad Zailani, 2016).
Location-
This area is concerned with emphasizing on those where a company is close to their
base of customers. For the companies such as Emirates it is difficult as they serve in many

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countries which requires a lot of location to target and gain access to (Koufteros and et.al.,
2018).
Transportation-
Emirate deals in this industry as Emirates SkyCargo uses their goods deliver through
the mode of airline so that they can enable their distribution fast and never miss the deadline in
market. Companies such as FedEx provides this kind of services by using the medium of
airline so that they can meet and fulfill the demand of consumers. Use of this medium is done
to deliver large quantity as it is an expensive source and it can be more efficient if the
company divides their center of distribution.
Information-
This aspect is concerned with collecting the appropriate information about demand of
targeted customers which helps Emirates to use its resources effectively, by maintaining a
balance between demand and supply. It is applied by the companies such as Emirates to
increase the performance of other drivers which are useful to the company. If the company has
collected the data which is accurate and reliable then they will be able to get positive feedback
and response which will help them to know more and develop more of their services
(Fredendall and Hill, 2016). They provide real time information in data through which
operations are performed so if there is any change in data or information then accordingly
operations are modified.
LO 2
2.1 Effectiveness of strategies used by an organisation to maintain supplier relationships
Emirates airline mainly aims to become the leader within aviation industry at
worldwide level, therefore, it requires to develop an effective SCM framework to exceed
expectations of customers by maintaining the relationship with suppliers, in following manner-
CRM will help the company to increase and enhance their relationship with customers
so that they can be economically valuable.
Communication-
In order to maintain the relationship with suppliers Emirates communicates with them
on a regular basis. Communication leads to develop transparency between suppliers and
business process and by this process management of respective airline can build trust between
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each other and understand the situation so that this aspect never breaks. Management of
Emirates also concern to respect the culture as well as avoid anything which may affect
relationship with suppliers (Coyle and et.al., 2016).
Solid Agreement-
Before coming into an agreement Emirates ensured that their suppliers agrees with
their terms and conditions and then come into an agreement. It will help to reduce any conflict
or issues regarding specific matters in the future. Also, this will help them to maintain the
relationship between each other calmly.
Relationship Program for Suppliers-
To form the structure with suppliers Emirates takes help of strategies which are
suitable and effective. Apart from that they never treat their buyers in a wrong manner by
using the control of power over them. Company measures the goal and calculate in what time
they can be achieved so that they can attain the goals in timely manner (Sweeney, Grant and
Mangan, 2018).
Management of performance-
This aspect is concerned with looking over the performance of the company. To keep
this performance program as a success involvement of the highest level is needed. Lower level
of the company is involved in those operations which are tactical and requires coordination
with suppliers so that they can manage the flow of operations in a successful manner. Higher
level of management of company meets in a quarter to set the analysis of strategy. It will help
the company to evolve their management in the long run.
Training-
Training educates the management of the company so that they can learn about the
benefits of using the resources optimally. Programs of SRM which operates on large scale
requires management to deal with the employees and operates them so that they can use the
tools successfully and execute the program. They also need to anticipate at different level so
that they can evolve them in their respective fields (Copacino, 2019).
2.2 Information technology to create strategies
MIS will integrate all the data information of suppliers which will enable them to know
about the remaining stock and track details of raw materials. They will also be able to
communicate effectively with one another.
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Automation of exchange of information between the supplier and the company-
If the company enables the exchange of information between each other than it will
allow them to have more time on the upcoming opportunities so that they can achieve more
success in market. Strategic supplier relationship can be enabled with the help of technology.
If the information shared and collected is right, then suppliers can help the company to
become more profitable. In order to use the factors of technology the company needs to
analyze the requirement and then conduct analysis for gap on the basis of data availability.
The processes which are right and is required to collect the data in an automotive manner will
also help Emirates to clean the data which is extra or put under new department or sources.
Company visualize the data with the help of technology so that they can get free from the
department which are concerned with conducting the activities of management for suppliers
(Christopher, Mena and van Hoek, 2018).
People and Technology-
The success of strategic relationship between the company and the supplier is based on
the quality of interaction between human. If the organization learns to adapt the factors of
technology then they will be able to gain advantage over others in the market.
Enabling strategic suppliers-
Information Technology can help the company to formulate those strategies which will
help them to predict the overcoming factors such as demand. When Emirates observe that the
demand is less it affects the level of confidence of company. For instance, Emirates have
divided the sector for business class and economy class in the plane so that they can categorize
the customers and cope up with the demand with sharing the right amount of information with
suppliers. Smoother the process of sharing more it will be able to work as a independent
function. It will help the company to look after the various methods of prediction and its
analysis so that they can move forward and achieve growth in operations (Wang and et.al.,
2016).
2.3 systems to maintain an organization’s relationship with its suppliers
Block Chain Supply Chain-
This system helps the company to keep the track of products. This method is
considered as less corruptible and as compared to others it is the best method as an alternative.
Block chain system helps the company in ways such as-

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Tracking-
Companies such as Emirates who operate on a large scale consists a lot of factors and
elements in their chain. It creates difficulty in tracking information about every material. In
this method tracking becomes easy for the company as it includes dealing with sensors and
tags of RFID. It also helps to detect frauds in the whole chain of supply (Christopher, 2016).
Cost Reduction-
This system helps to reduce the cost of supply chain. The focus of this system is to
remove the cost which turns out to be extra but it still gives the company the guarantee of
security. This method does not involve middlemen, intermediaries which prevents the
company from getting duplicate products, saves money and reduce the chances of meeting
with cases of frauds. It helps to increase the efficiency of work.
Establishing Trust-
In order to maintain the flow of supply chain trust is needed to be maintained between
the supplier and the company. For instance, when the suppliers send the materials to company
a level of trust needs to be present so that without checking the company can rely on them.
The nature of the system of block chain allows the company to maintain this level of trust over
their suppliers (Brindley, 2017).
Block chain system helps Emirates to access the data from many locations and from
anywhere. The security provided by this system is of high quality. Apart from that this system
is considered most because it allows the access to data between some parties who have the
authorization to do that. This system has the capacity to link different types of ledgers and
points of data so that they can maintain the integrity of data and system. Other than these
factors, it helps to look after factors such as improvement in management for inventory,
reduction in prices of courier, reduce the time spent in paperwork.
LO 3
3.1 Information Technology Integration Of Different Parts Of Supply Chain
Impact of technology is great in industry because it helps in improving and enhancing
operational activities of companies more flexible and efficient. Technology has reduced labour
cost in Emirates which is making firm have a lot of benefits since objectives of company are
being met easily. Time consuming processes have been cut short and error prone processes in
organization are being easily detected and solved from time to time by using data collection
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technologies. Warehousing and Transportation can be controlled by use of technology in
organization. Data collection is provided by technology which will help organization to reduce
over purchase of resources if material is already available in inventory. The industry will
know the inventory which is already present in the inventory so over loads will not be
purchased by the company (Alzoubi and et.al., 2020).
Demand planning has to be done so that fulfilment of supply is possible in
organization. Inventory of company is easier since data is collected from time to time which
will help organization to make decisions carefully. In Emirates the inventory is classified into
services of classes. Transparency in business is a very important factor which Emirates are
trying to provide to customers and employees of firm. Employees need to know changes
which are taking place in business so that they can deal with changes and accept them.
Emirate focuses on all employees which is a very important factor which technology helps
organization to make most from supplies which Emirates are having. Delivery which is being
done in business can be tracked and decisions can be made accordingly so that company can
produce finished goods.
Sourcing and procurement is there in companies so that functioning can take place
better and that will improve company to have smoother functioning without errors.
Communication with suppliers is better and that will make Emirates be able to reach their
objectives very quickly. Emirate has expanded itself but aim of company is to cover as many
countries as possible therefore supplier chain has to be tracked and data collection in
organization is a very important factor for Emirates. Labour cost is increasing because of new
government policies therefore technological changes will help firm to generate a lot of
revenue for themselves. Human errors in data collection and tracking of supply chain is going
to be lesser. There will be more discipline in firm and technology will help organization to
function better. Control over supply chain of business is better and that will help Emirate to
have right decisions for functioning in market.
3.2 Information Technology has Contributed to Management of Supply Chain
Technology also helps company to have a better inventory management in
organization which is a very important factor. Tracking and delivery is another format which
has been added to company because of technology so that customers. Relationship with
suppliers and management of organization will get better so that changes can be made easier
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and betterment of company can take place (Fredendall and Hill, 2016). There is a visible
transparency in organization because of technology which has been added in firm for
processing of supply chain. There is a growth in productivity in Emirates which is a great
improvement in firm over time. Inventory of Emirates is under command of firm which is
making time-consuming and easier functioning of supply chain. There are properly
technologies which are being used in Emirates then there is cost reduction because supplies to
existing available products will not be required. Lesser cost will be used for supply chain and
that is a great profit for Emirates. Control over production is present because of technological
changes which are taking place in Emirates. There will be engaged suppliers relationship in
the airlines which is going to be used in the industry. Technology will help in smoother ride of
management which will be better for airlines to have a competitive advantage. Technology
also gets clarity and control over the working of the industry which will be very helpful. Great
productivity will benefit everyone in the business and the company will be able to make more
revenue. Technologies which are being used in airlines are onboard connectivity, robotic
assistants, smart ground transportation, block-chain, biometrics, improved cybersecurity, etc.
Style of management will also change according to technology which is coming in
firm. Quality of supply chain can be managed by employees when material is coming in
company so that best of quality products can reach customers. Information can be sent from
time to time so that all employees are up to date which will make functioning of organization
better and that is a very important factor for Emirates so that they can continue to have a good
revenue for themselves. Paper work of management of Emirates has reduced and that is
making company have a lot of profit. Management will be able to make decisions even better
than before which will make efficiency of Emirates even better than before. Coordination in
organization will get improved and achieving goals of firm will be easily made.
Awareness in supply chain through technology will get better and company will know
what changes and what decisions have to be made which will benefit firm. Management can
maintain a healthy environment which is clean and friendly for workers because of
information of technology which has added in Emirates. Expensive infrastructure will not be
required for facilities because labour costing will reduce. Technology has made it so easy for
employees to keep a check on supply chain that management can keep a check on it from

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anywhere in world and control from management side will be present always. Email is the best
way management will be able to communicate in organization or functioning.
3.3 Effectiveness of Information Technology in Managing Supply Chain
Bar code scanning is one of most used technological change which Emirates are using
for faster working and data collection for organization. This process has reduced the paper
work with minimization of errors. Inventory can be checked only if material is in storage,
picked up, dispatch and inspection timing can be reduced of supply chain of Emirates
(Schönsleben, 2018). RFT's in company also help to have competitive advantage which is
making what it is today. Information about product coming in business can be found out
because of this technological change which has taken place. Tracking products or supply chain
is very important so that management can make decisions according to that which will be
setting objectives for employees in company.
Technology has made it so easier for making communication with customers,
suppliers, investors and others, for an organization. Inventory does play a great role in any
organization therefore it is very important for Emirates to keep a technological check on it so
that functioning can take place better. Return of goods can also take place because technology
has made it so flexible for management to do that so that quality of products are not
compromised. Communication which is easily being done by people are a great advantage for
Emirates because that is making company have a competitive advantage which will help
company to have a future growth which will be very beneficial. Supply chain is huge in
Emirates and specially when organization wants to expand itself in industry (Swink and et.al.,
2017).
LO 4
4.1 Role of Logistics in Supply Chain Management in an Organization
Reduce Cost and Improve Efficiency
Roles of logistics make functioning of Emirates more efficient and effective because
they will be able to give justification to the customers needs and demands will be met.
Planning is most important factor which will help company to get a better functioning by
lowering cost and increasing productivity. New markets have to be penetrated into so that the
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company will be able to capture more customers in the organization.. Roles of logistics will
have a smoother operations in Emirates which is a very important factor for business. Scaling
of supply chain can be done by logistics and distribution can be done globally after this factor.
Customer Satisfaction
When company would know customers demands, needs and preferences firm will find
it easier and more decisive to make decision accordingly. Customers need finished products to
reach to them on time and faster therefore company will have to find ways which will make
this factor get better so that organization can benefit from it. Emirates know that what
customers are expecting from its services and to fulfill that need this firm has established a
professional logistic team in organization, whose main role is to ensure a good on supply
chain.
Create Business Value
Reaching customers does not mean that customers are only looking for quality or
quantity, but they look forward for availability of products in market. Creating value for
customers in an organization is a very important factor therefore products which are being
produced must reach customers from time to time. There has to be professionalism in business
so that they can create a value for company in market. Professionalism attracts more
customers in market and that will make improvement in organization so that changes can be
got which will make a better brand value. The distribution which is done by class in Emirates
is making the customers more satisfied and that will help the industry to have a competitive
advantage for a longer growth of the company.
Key to Success with Supply Chain
Supply chain deals with networks like warehousing, delivery, shipment, production,
etc. These factors influence Emirates on a large scale so that they can make changes when and
where required. Sales and profits can be tracked easily and that will make company make
decisions accordingly (Why Logistics is Fundamental to Supply Chain Success, 2019). Proper
logistics can help a company have a competitive advantage since the functioning of the
organization will be smoother. Attracting more customers who are ready to invest in
organization and poor logistics management can lead to losing customers and company will
not be able to make revenues which they did before. Emirate has a good logistic team which is
making organization have a positive public image.
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4.2 Procurement Practices
Establish alliances with Key Supplier
There has to be an agreement between both parties which are having an exchange of
products and there has to be a clarity in procurement processes. There has to be an effective
communication because it refers key to success since relationship supplier and company share
are of a long term. To strengthen and manage relationship between buyer and supplier, it is
essential to develop two-way communication. Problems which may affect the supplier
relationship management in the future, can be solved effectively and efficiently by
implementing best practices like ‘alliance management’.
Engage in Collaborative Strategic sourcing
According to tradition responsibilities of strategies lie with procurement unit but it is
not so in present. Strategies have to be made now with collaboration between all factors of
business so that outcomes is better (Coyle and et.al., 2016). It is always better for Emirates to
have this factor so that a result which will be more beneficial or more ideas can come in
strategy can come out. Feedback's and views are taken of everyone in meeting so that right
sourcing supplier can be selected. It is due to this procurement there is a steady supply of
products and it is cost effective in market which will make business gain a lot of profit.
Procurement unit aware evolving organization needs which need to be fulfilled since they will
be able to provide best to customers of organization. Right technologies should be added in the
organization so that the organization can function better and make the changes in the
organization as expected. There should be engaged collaborative strategic sourcing of supply
chain of the management. The decision-making in the industry will be better and the results
will be very beneficial as well. The focus should be on total ownership and not the price so
that the break even point of the organization can be achieved. There should be addition of
contracts under the supply chain function so that there is an efficient saving cost and other
factors which can be considered.
Appropriate Policies and Procedures by focusing on total cost of ownership
Policies and procedures have to be set so that there is a better functioning of company.
There are certain sequence which follow therefore there has to be structure in business. Even if
procedures are set and are put to place but still there must be reviews which must be taken so
that functioning can take place better which will help organization to get a better functioning

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for themselves. Business must review procedures so that they can figure out if they are still
relevant, and they are not creating troubles in supply chain of business. Emirate has a very
simple and easy to followed and implemented in business. There is a risk in process when
there is a theft, fraud and other issues and there procedures are required so that business will
not have to face a lot of loss. The training and maintenance of the organization will be better
and that will make the cost's ion transportation improve and Emirates will make a lot of profit
because of that factor.
4.3 Improvement of logistics and procurement practices
Adopting automation
Technology has made functioning of Emirates very simple and easier. Paper work and
errors in working has reduced which is why company is being able to make a lot of benefit in
market (Sweeney, Grant and Mangan, 2018). There are no extra material which is being got in
organization which will make functioning of company effected. Pressure on employees are
lesser which will make organization function better and faster objectives and aims will be met.
Data collection is a very important factor in emirates and that will help company in future for
its growth in market. Better decisions can be taken out in situations so that there is a growth in
company. Time tracking will be better so that there is improvement which Emirates can make
for functioning of firm. The goods which are dispatched by the suppliers can be tracked and
that will make the industry have a lot of benefit from that factor as they will be able to keep a
check on it. The functioning is going to be robotic which will bring structure in the business in
the functioning of the organization (Key Success Factors For Effective Logistics Practices,
2018).
Value relations
Employees will have a better working within organization because logistics will be
able to keep a track on the functioning of the organization. Employees are considered as the
most essential resources that are mainly responsible for business growth. Therefore, whether a
person employs as a delivery guy or a warehouse manager, it is essential for them to be
professional in respective field. Organizing training will help to update skills and knowledge
of employees with logistics and procurement practices. It is very important that relationship
between Emirates and customers or suppliers is very strong and Emirates has managed to do
that very well therefore company is being able to be where it is today. The skills which are
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required in the employees are very good therefore the company is being able to do what they
are doing today. It is very important for Emirates to have the right skills and management of
the relationship within the organization so that the functioning in the organization can take
place properly.
Efficient Transportation System
Transportation is supposed to take place better so that company will be able to reach
out to customers from time to time which will be very helpful for organization. Transportation
can be tracked and that will make company have a better functioning and more customers in
company because they will be able to reach out customers on time and will be able to fulfil
needs and demands of them. There must be safer and faster routes which need to be found so
that transportation can take place in market. Cost effective packaging of products and
comfortable factors which airlines should be providing to customers is a must. This will attract
more customers in company which will be very beneficial (Copacino, 2019).
LO 5
5.1 Strategy to improve an organization's supply chain
There are many ways in which Emirates can improve their supply chain-
Automatic Planning-
Monitoring on the inventory on a continuous basis takes too much time of the
company. Companies use the system of enterprise resource planning and link it with the
management of supply chain so that it can facilitate them with purchasing automatically. It
states that the software can help the company to automatically buy the orders when the need
for inventory arises. This is considered as a critical aspect as it is necessary to maintain the
level of inventory. This aspect will help the employees of the company to focus on more
concerned areas.
Standardize-
If the enterprise resource planning of the company is standardized then they will be
able to save more money and time as the software will lead to increase in efficiency. Apart
from this it will also help the company to increase the accuracy in work, reduce conflict by
enabling proper communication and appreciate the effort of team which will increase the
teamwork in company (Shibin and et.al., 2016).
Increase Transparency-
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Many problems arise in the management of supply chain such as mistakes, fraud and
waste. It affects the chain of supply on a temporary basis as it can be solved by taking the help
of system of ERP. The major problem of inventory is keeping the physical count of the stock.
Employees of the company always make mistakes in keeping the correct count as errors are
always there which is a loss for the company.
Gain the insight of data-
Making decisions for the management of supply chain requires information which is
accurate and updated with time. This helps the company to facilitate with the insights which
are valuable to the company so that company can add strength into the process of supply
chain. The software of ERP gives permission to the suppliers and the management to gain
access to inventory instantly so that they can take corrective measures if there are any errors in
the inventory. The software also looks after the production and purchases of data so that they
can overcome the situations which are critical in the purpose of making decisions.
These strategies will help the company to bring changes in supply chain so that they
can improve their measures and provide better service to their customers.
5.2 supply chain improvement strategy will benefit overall business performance in an
organization
Training of supply chain leads to reduction in cost-
If Emirates works on improving the supply chain of the company then they will be able
to reduce the prices of their services. Company must enroll a program for their employees of
training and development which will help to decrease the cost of storage, management of
inventory and transportation of goods. Training must include the aspect of removing those
things or processes which adds no value to the company (Bouchery and et.al., 2016). Some
areas which must be looked are the money spent on storage and transportation, predicting the
wrong quantity of requirement. If employees learn to cope up and improve on these factors
then the supply chain of the company will have more chances to gain success in the market.
Ensure satisfaction of customers through training in supply chain-
Satisfying the consumers is the most necessary job and providing them with better
experience every time increase the chances of success. While considering the design of supply
chain Emirates must keep one thing in mind that is to satisfy the needs of consumers.
Company must provide them with training and make them learn the importance of maintaining

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the relationship with customers. There are many issues in managing the chain of supply which
stops the company from giving the customers a better experience. Employees of the company
must learn to respond to customers in an appropriate manner, deal with the shortage of stock,
how to market the product or service in less time otherwise it will affect the supply chain as
well as the profitability of the company. If the training provided to the employees covers all of
these aspects then they will be able to design a more successful chain of supply (Ayers and
Odegaard, 2017).
5.3 Overcoming the barriers while implementing the supply chain improvement strategy
Benefit only for one company-
Benefit must be there for both the parties in any form such as financial etc. for instance
companies such as Emirates who operate on a large scale has implemented the system of
RFID it is a radio frequency identification and it is a form of wireless communication which is
used to identify an object or an animal. So that they can achieve success and give some
benefits to the suppliers and vendors. This process is known as imposed collaboration. In this
strategy the company can make the decision to whether or not share the collection of data
through RFID so that they can plan the demand according to the analysis of the market. This
system helps to benefit both the suppliers and the company. There are more forms of this
collaboration such as replenishment on continuous basis, management of inventory for the
vendor, planning according to the forecasting or collaborative replenishment. They need to
transform the culture of the company so that they can integrate and link the control over
management.
Short Term Focus-
If the management of the company has made plans according to the short term so that
they it will create difficulty for the company to manage their operations in the long run. In the
situation of short term investment it may not affect but in the case of large investment made by
the company it can affect the flow of cash. Emirate needs to analyze the cost of distribution on
the basis of short term goals. Company needs to analyze the goals which are of shorter interval
and evaluate their results so that they can check out whether the investment had the capacity to
reach the goal.
Incompatible Technology-
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Emirates deals with multiple now of suppliers in various areas as it is a international
company which requires the level of technology and flexibility to cope up with this challenge
as it is not difficult to operate with too many suppliers.
CONCLUSION
From the above study it can be concluded that Emirates is having a planned process
which they follow for the smooth functioning the organization is having in the present. There
is a lot of improvement in the company because as the company got more experience in t this
field they kept improving and that made the company have a better functioning for
themselves. Emirate has improved and changed over years, and they have used their
experience from time to time. Supply chain is a very important factor in Emirates which has
been discussed in the entire report and the improvements the company has made in the
functioning of the organization. Technological changes has also got various changes in the
organization and the objectives have started being met faster for the better functioning of the
organization.
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