Application of Logistics and Supply Chain Management

This report explores the application of logistics and supply chain management in Flyadeal Airlines and Al Baik Restaurant. It discusses the various tools and concepts that can be used to achieve their objectives. The report also analyzes the expected results of implementing these strategies.

Title: Application of Logistics and Supply Chain Management
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Contents
Executive Summary.....................................................................................................................................2
2. Background Information..........................................................................................................................3
Flyadeal Airlines.......................................................................................................................................3
Al Baik Restaurant...................................................................................................................................3
3. Problem Description................................................................................................................................4
4. Application of Supply chain management and logistics management tools and concepts to be applied. .5
Some of the supply chain management and logistics tools that the Al Baik Restaurant can use for
achieving its objectives are:.........................................................................................................................5
 Recipe Management:.......................................................................................................................5
 Automated Recovery of Credit:.......................................................................................................5
 Extra value meals:............................................................................................................................5
Some of the supply chain management and logistics tools that can be used by the Flyadeal Airlines can
be:................................................................................................................................................................5
 Benchmarking:.................................................................................................................................5
 Integration of the vendor and contract management:....................................................................6
 Use the SCM to track the lifecycles of the aircraft:..........................................................................6
5. Analysis of the expected results...............................................................................................................6
Bibliography................................................................................................................................................8

Executive Summary
In this report we are going to cover the Logistics and Supply Chain Management of the given
companies. For this the various management tools and concepts will be applied so that the
objectives of the company can be achieved (Myerson, 2012). Logistics defines the arts and
science of obtaining, producing, and distributing the product in a proper place and in proper
quantities. The logistics management controls the plan, implement, and control of the flow and
the reverse flow of the goods and the services and the related information between the two points
i.e. point of origin and the point of consumption to fulfill the customer requirements (Lackes &
Dyckhoff, 2013).
Supply Chain sometimes refers to logistics involves the various activities that includes
processing, manufacturing, procurement and transportation of the finished products as well as
raw materials until it is used by the consumer as a final product. The activities of the supply
chain converts the various raw materials in to finished products so that these can be used by the
consumers. Various external as well as internal factors affects the Logistics. (Christopher, 1992).
Some factors like the state of machinery, or its obselence are all affecting the production of
goods and the logistics. Not only this the logistics is also affected by the increasing demand of
the customers as for fulfilling the demand of the customers more supply will be required.
2. Background Information
Flyadeal Airlines

Flyadeal is a low fare company which is based at king Abdul-Aziz International Airport in
Jeddah. This airline is own by the Saudi flag carrier Saudi. This airline started their operations on
23 September 2017 for the domestic destinations. It is a service company (Alabdulaal &
Ghassab, 2018). It provides airline services to its customers at affordable costs. The Company
has King Fahd International Airport as its gateway and it is located to the Northwest of Dammam
about 20kms.
Al Baik Restaurant
Al Baik is a fast food restaurant of Saudi Arabia; it opened its first branch in Jeddah in the year
1974. The restaurant is very popular for their delicious fried chickens which are very affordable.
The restaurant has been performing very well since it came into existence and the customers of
the restaurant are always satisfied by its services (Nouman, 2015). The main mission of the Al
Baik restaurant is to provide great taste and wonderful service to its customers. The restaurant
does not believe in compromising with the quality of the products it offers to its customers. The
restaurant is located on the Jeddah’s old airport road. The products of Al Baik restaurant include
Chicken Fillet Nuggets, Shrimp, and Spicy Chicken, Fish Fillet Nuggets, Big Bak Sandwich and
Chicken meals. It sells shrimp and boasted Chicken with various varieties of Sauces. It has more
than 40 branches in Jeddah and it is planning to expand further.
3. Problem Description
The main objective of the airlines company that is Fly deal airlines is on the process
improvement. For achieving this objective the company has been focusing on transformation and
dual brand strategy which would help in its rapid growth. The Saudi Arabia has achieved a very

good market share due to the accelerated expansion followed by the airlines company under the
transformation programme. In the year 2018 forty percent of international market was captured
by Saudi Arabia that included non-scheduled and scheduled religious segments (CAPA, 2018).
Now, moving on to the fast food restaurant in our report the main objective of the Al Baik fast
food restaurant was mainly on the logistic decision making. The restaurant tries to achieve its
objectives through its firm infrastructure, great technology, procurement and human resource
management. The primary activities of the restaurant include outbound logistics, inbound
logistics, great services, marketing and sales and proper operations. The best places where the
products of the Al Baik can be found are at its restaurants (Argaam, 2017).
Now, when we talk about logistics and supply chain management which is a integrating function
that optimizes all the logistics activities and coordinates these activities that includes sales,
marketing, information technology, manufacturing and finance. In this part the main focus would
be on the supply chain and logistics management of a low fare airlines company that is Flyadeal
and Al Baik fast food chain (Bounzif, 2018).
4. Application of Supply chain management and logistics management tools and concepts
to be applied
Some of the supply chain management and logistics tools that the Al Baik Restaurant can
use for achieving its objectives are:
 Recipe Management: try to manage all the menus and recipes centrally, that should
include the production methods, allowed substitutes so that consistency can be assured.

 Automated Recovery of Credit: the company can eliminate the supplier overcharges
through automated credit recovery and alerts (Reily, 2012).
 Extra value meals: These days the budgets of the customers are tight usually. So, the
restaurant can focus on providing extra value meals to its customers that can be budget
friendly. For example, Like Subway and McDonalds provide its customer with a extra
value meals in which the customers has to spend less and a meal is prepared for him that
has a high value.
Some of the supply chain management and logistics tools that can be used by the Flyadeal
Airlines can be:
 Benchmarking: Under this technique the company can include the customer
requirements forecasting, analyze the demands capacity management and address the key
bottlenecks like logistics and hanger space.
 Integration of the vendor and contract management: Keeping in mind the global
vendor management it has been seen that the supply chain management is very complex.
It is very important to properly deal with the orders and manage those orders
transparently the company shall focus on integration of the materials, components and
structures so that operational success can be achieved.
 Use the SCM to track the lifecycles of the aircraft: Predictive alerts are used to
manage the life and components of the aircrafts (Kreyon., 2015). You should know when
the component is due for maintenance this shall be tracked on regular basis.

5. Analysis of the expected results
From the above discussion it can be concluded that both our selected companies shall
continue to focus on the various tools and concepts so that it can achieve its objectives.
The airline company should try to achieve its objective in a very strategic way. Like if
they concentrate well on their quality and the service management then they has a very
much higher chance to grow up fast. Also they have to think about the costing to comfort
ratio in their company. What is the cost they are keeping and according to that cost what
amount of service they are providing to the customers. Now they have several centers in
the United Arab Emirates and the logistics and the supply chain management is also goes
for that. Now talking about the fast food chain Al Baik it is essential that they concentrate
on the basic priorities of the logistics and the SCM. What they have to do that, they
should take steps in increasing the quality of the roasted chicken according to their cost.
But now they have to more concentrate on the supply chain management that how the
flow is going on as well as the reverse flow from two points.

Bibliography
Alabdulaal, H. & Ghassab, R., 2018. Flyadeal: A Replicate of Southwest or Continental Lite. Arabian
Journal of Business and Management Review, 8(2), p.341.
Argaam, 2017. Argaam.com. [Online] Available at:
https://www.argaam.com/en/article/articledetail/id/506608 [Accessed 16 February 2019].
Bounzif, M., 2018. A Case Study About Accelerating Expansion of Restaurants Industry in Saudi Arabia.
Business Management and Strategy, 9(1), p.12.
CAPA, 2018. centreforaviation.com. [Online] Available at:
https://centreforaviation.com/analysis/reports/saudia-transformation-and-dual-brand-strategy-drive-
rapid-growth-453549 [Accessed 15 Februrary 2019].
Kreyon., 2015. Kreyonsystems.com. [Online] Available at: https://www.kreyonsystems.com/Blog/supply-
chain-management-for-aviation-industry/ [Accessed 16 February 2019].
Lackes, R. & Dyckhoff, H., 2013. Supply Chain Management and Reverse Logistics. New York: Springer
Publications.
Myerson, P., 2012. Lean Supply Chain and Logistics Management. Toranto.: McGraw Hill.
Nouman, S., 2015. hoteliermiddleeast.com. [Online] Available at:
http://www.hoteliermiddleeast.com/24226-saudi-restaurant-shuts-down-due-to-high-demand/
[Accessed 16 February 2019].
Reily, J., 2012. inboundlogistics.com. [Online] Available at:
https://www.inboundlogistics.com/cms/article/restaurant-logistics-serving-up-the-perfect-meal/
[Accessed 16 February 2019].