Supply Chain Management in Airasia

Running head: SUPPLY CHAIN
Supply Chain
[Airasia]
Name of the student:
Name of the university:
Author note:

SUPPLY CHAIN1
Executive summary
Airline industry like any other industries has many opportunities rising for airline companies. In
addition, the industry faces challenges as well such as in the form of shortages in labour supply.
The main purpose of this study is to analyse the supply chain management in Airasia. The study
finds that the company is good at dealing with a variety of supply management tasks such as
providing excellent service at low prices. AirAsia has no matching for its supply chain
management. It has earned recognition for being the most cost-effective airline brands in the
world. However, it also has areas where improvement is required. These areas include but not
limited to managing the engines and supply of labours.

SUPPLY CHAIN2
Table of Contents
Introduction of the organisation.......................................................................................................3
Body.................................................................................................................................................3
Explanation of the supply chain networks...................................................................................3
Analysis.......................................................................................................................................7
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

SUPPLY CHAIN3
Introduction to the organisation
AirAsia is a Malaysian-based airline company, which is headquartered in Kuala Lumpur.
It follows the low-cost business model. It has been recognised as the best airline company in the
world in the low-cost airline model. It holds a pioneer status in Asia in the low-cost airline
sector. The company operates in 78 destinations comprising of 25 countries (Airasia.com, 2019).
Despite being a globally popular name, AirAsia has to face challenges in a variety of
forms. It is a truth that there are both negative and positive trends in every single industry, which
exist in this world. The airline industry is not an exception. Airline industry depends entirely on
the number of customers that includes both existing and new travelers. However, the consumer
base for the Airline industry is still growing and it is still not close to a huge figure (Belobaba,
Odoni & Barnhart, 2015). It is affecting the growth rate. Hence, AirAsia has to ensure so many
things to remain competing in the industry.
The main purpose of this study is to analyse the supply chain management in Airasia.
This includes explaining and illustrating the various forms and elements of a supply chain
network.
Body
This section analyses the supply chain management in Airasia. In doing so, it takes help
of articles from websites, journals and books.
Explanation of the supply chain networks
It is understandable that to be able to deliver value through operations companies must
understand their customers. Companies should know the areas where values can be created or
lost as well. Supply chain management is one very essential element of a business that makes a
difference to the performance. Firms having excellent control over their supply chain will most
probably fulfill the market demands. Supply chain management as a whole has two distinct types
such as mentioned below (Hugos, 2018):
1. Primary Activity
2. Supportive Activity