Air New Zealand Limited Procurement Management: A Detailed Analysis

This report provides a comprehensive analysis of Air New Zealand's procurement management practices. It begins with an executive summary outlining the key aspects of the study, including the strategic importance of procurement for the airline's success. The report delves into Air New Zealand's code of conduct, highlighting its commitment to labor and human rights, as well as environmental sustainability. Recommendations are made to senior management regarding security, environmental sustainability, tactical acquisition, and tactical profit. The core of the report examines the procurement process steps, from requirements gathering to payment, illustrating how Air New Zealand manages its supply chain. The report also identifies key vendors that support the airline's operations, and discusses the quote and bidding processes. The conclusion summarizes the findings, emphasizing the significance of effective procurement management for Air New Zealand's competitiveness and market success. The report uses figures to illustrate the procurement strategy blocks and the procurement process itself, providing a clear visual understanding of the concepts discussed.

Running Head: PROCUREMENT MANAGEMENT: AIR NEW ZEALAND LIMITED
Procurement Management: Air New Zealand Limited
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1PROCUREMENT MANAGEMENT: AIR NEW ZEALAND LIMITED
Executive Summary
The paper will provide the detailed information regarding the procurement management that
has been taken by Air New Zealand Limited so as to flourish in the marketplace and can gain
success in the marketplace. The paper will provide an idea regarding the strategic importance
that is vital for the expansion of the company and the procurement management as well. The
research paper will also give a clear idea regarding the recommendation that requires to look
after by the company so that the senior manager can take up the steps accordingly and assist
them to lure the consumers from the marketplace.
The study will also focus on the procurement process, which is crucial for the expansion of
the firm in the marketplace and to obtain popularity in the marketplace. The report will
showcase who are the vendors of the company who enable them to work efficiently and will
allow them to gain success in it. Lastly, the paper reflects quote and bidding which is
essential for the business firm to flourish in the marketplace and to make the success in it.
Thus, the organization must look after the matter so as to become successful in the
marketplace and can get additional advantages to provide competition to the competitors in it.

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Table of Contents
1. Introduction............................................................................................................................3
2. Strategic Importance..............................................................................................................3
2.1 Code of Conduct..............................................................................................................4
 Labour and Human Rights...........................................................................................4
 Environmental Sustainability......................................................................................4
3. Recommendation to Senior Manager.....................................................................................5
 Security........................................................................................................................5
 Environmental Sustainability......................................................................................5
 Tactical Acquisition.....................................................................................................6
 Tactical Profit..............................................................................................................6
4. Procurement Process Steps....................................................................................................6
5. Vendors..................................................................................................................................8
6. Quote or Bidding....................................................................................................................9
7. Conclusion............................................................................................................................10
References................................................................................................................................11

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1. Introduction
Procurement management is essential for the firm to maintain a relationship with the
vendors who provide support to the firm with the help of goods and services during the
product life cycle. This type of management is essential for project management so that
planning can be done accordingly for temporary operations (Fleming, 2019). This will assist
the business firm to gain popularity in the market and to establish an effective and efficient
supply chain management for the company to flourish and to earn more from the
marketplace. Therefore, it is crucial for the firm or the organization to look after the matter so
as to provide better quality service and products to the consumers and help it to obtain
success in the process.
Air New Zealand Limited is a flag carrier airline which operates from New Zealand as
per the name suggest. The company is based in Auckland. The company provides domestic as
well as international flights within the Pacific Rim. The organization is one of the members
of the Star Alliance from the year 1999. Air New Zealand Limited began as the Tasman
Empire Airways limited in the initial days, and then they become the flagship company in
New Zealand for the flights, which showcase the graph of the company on the higher side
and which is vital for the company to flourish in the marketplace (Davies et al., 2017). This
would have been possible for the company as they possess effective procurement
management, which is beneficial for the expansion of the company in the process.
2. Strategic Importance
The procurement team of Air New Zealand Limited is the ones who are responsible
for the annual spending of the company in the procurement management so that they can
mutually benefit the suppliers as well as the customers in it. This is critical for the business

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firm to provide the highest standard of social as well as environmental responsibility and
ethical conduct so that they can ensure safety as well as the commitment to both the parties.
This is essential for the firm to sustain in the marketplace and to gain success in the process
(Tham & Evers-Swindell, 2018).
2.1 Code of Conduct
The code that the company follows for the procurement management satisfies the
parameters where they require to provide attention so as to flourish in the marketplace and
can attract the consumers from it. The code addresses the following aspects, and they are:
 Labour and Human Rights: The company follows human rights protection as
guided by the UN Global Compact so that they can safeguard the rights of human
beings as well as labour (Staal, 2019). This will automatically enable them to
operate in an effective way possible and will allow the firm to become popular in
the marketplace.
For example: Employees are not discriminated based on race, caste, or
religion or sexuality, which is vital for the expansion of the business firm
in the marketplace and to gain popularity in it. The company requires to
look after the goods and services that are supply to them should be
manufactured under safe and healthy conditions so that they can provide
safety to the customers.
 Environmental Sustainability: The company looks after the processes that they
are following in their business model so that they can improve it and minimizes
the impact on the environment. This is important for the growth of the firm and
helps them to gain success in the process (Bingham & Lawrence, 2018). This
ultimately enables the organization to expand in the marketplace and showcase

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their efficient procurement management, which is beneficial for them in the
growth process and assist them to obtain success in the process.
For example: The firm requires to apply law and regulation in its business
model so that it can protect as well as preserve the environment in the
process, which is crucial for the company to obtain popularity in the
marketplace and showcase its effective procurement management.
Therefore, it is vital for the company to enhance its financial position in
the market as well as to generate revenue in the process.
3. Recommendation to Senior Manager
As per figure. 1 few recommendations need to be done to the senior manager so that
the company Air New Zealand Limited can look after so that they can achieve success in it
and assist them to become popular in the marketplace. The recommendation will enable the
firm to enrich their financial position in the marketplace and to gain success in the process,
and they are:
 Security: The firm requires to look after the strategic security so that they can
look after the products and services that are provided to them are being
manufactured under safe circumstances. This is vital for the company as they are
giving airplane service to the customers, so the organization requires to look after
the matter, which will enable the customers as well as vendors to feel satisfied
with the services that the company is providing to them.
 Environmental Sustainability: For the strategic critical, the business firm
requires to look after the environmental sustainability as the global warming is
increasing gradually and the companies need to include code in their business
model so that they can pollute less and can operate in an effective way possible.

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So, it is critical for the organization for the expansion process and helps them to
obtain success in the process.
 Tactical Acquisition: For the tactical acquisition, the company requires to check
the quality of the product and service that the manufacturer is providing to them
so that they can look after the safety of the customers, who are availing the service
from the company and it is essential for the company to look after as they are
operating in airline service and which is necessary for the company to look after
the matter.
 Tactical Profit: Lastly, for the tactical profit the company to adopting so many
strategies so as to provide best quality service to the consumers and safeguard the
interest of the manufacturer at the same time, which will assist them to achieve the
success in the process and enable them to expand in the marketplace.
Fig. 1: Procurement Strategy Blocks
(Source: Created by Author)

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4. Procurement Process Steps
As per figure. 2, there are procurement steps that need to be followed by Air New
Zealand Limited so as to flourish in the marketplace and can gain success in it. The initial
step requires by the company to look after are requirements so that they can draw out the best
products and services from the manufacturers. In the next level, the company needs to create
its flight as per the specification of the customers. After that source requires to be determined,
which will enable them to expand in the marketplace and to obtain success in the process.
The firm then goes through the bid invitation as well as quotation entry, which will enable the
company to look after the financial part so that they can calculate the profit or loss of the
company.
Then the company will go through the award phase as well as PO processing, which is
vital for the expansion of the firm in the marketplace. On the other hand, the company will
also monitor the PO as well as maintain a service entry sheet so that it can be transparent with
the manufacturer as well as customers in the process. Lastly, there will be service acceptance
as well as invoice verification, which is essential for the company to showcase its efficient
procurement process to the customers as well as the manufacturer. Finally, the payment is
being made, which is an essential aspect of the development of the organization in the
marketplace and to achieve success in it (Staal, 2019). Hence, the organization needs to look
after the matter so that it can flourish in the marketplace and can achieve victory in the
process. This will also assist the firm in luring the customers from the marketplace and
making them accessible in the process.

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Fig. 2: Procurement Process
(Source: Created by Author)
5. Vendors
There are leading four vendors who provide support to Air New Zealand Limited so
that they can flourish in the marketplace and provide quality service to the consumers. This is
vital for the business firm so as to lure the customers and can generate revenue in the process.
This automatically assists the organization in an effective way possible (Tham & Evers-
Swindell, 2018). Concentrix provides customer commitment, which enables them to provide
support to the customers and help them to deal with the customer’s experience, which allows
them to achieve the target and enhance the service in the process. This will assist them to
provide quality service to the customers.
The other vendors are Flight Interiors, who help the company to design an innovative
interior for the company so that the customers can experience eliteness while availing the
service. Ecoware helps the company to look after the ethics and sustainability of the company
so that they can follow the rules and regulations for ethical practice and plan sustainability in

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the process. Lastly, Villa Maria provides strategies for mutual values to the supplier and Air
New Zealand Limited which enables them to deal with the suppliers in an effective way
possible and assist the organization to flourish in the marketplace and to gain success in the
process. Therefore, it can be said that the company possesses an effective as well as efficient
vendors who help them to make the success in the process and assist them to expand in the
marketplace by providing quality service to both the suppliers as well as the customers in the
marketplace.
6. Quote or Bidding
Concentrix has been contracted as the contact center partner for the company for six
years which mainly operates in New Zealand. The firm primarily deals with the customer
service and take feedback from them which is vital for the organization to expand in the
marketplace and to lure the consumers to a large scale. This is vital for the expansion of the
organization in the marketplace and to achieve success in the. On the other hand, Flight
Interior who are providing innovative design to the company for more than 30 years and
helps them to flourish in the marketplace and to achieve success to give satisfaction to the
customers and provide them elite experience in the process.
On the contrary, Ecoware helps the company to work efficiently and plan the
sustainable and ethical practices so that the company can become popular in the market and
they are working with the company for many years now. So, they play a significant part in
the process. Lastly, Villa Maria are the wine partner of the company and works for them for
more than four years from now. This is vital for the firm to understand so that they can
benefit both the suppliers as well as the company in the long-run. This assist them to expand
in the marketplace and to gain success in the process. This is vital for the organization to look

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after so that they can be successful in the marketplace and can meet what they intend to
obtain from the marketplace.
7. Conclusion
It can be inferred that the company is operating in an efficient way possible and assist
them to achieve success in the process. This is crucial for the firm to understand so as to
provide quality services to the consumers and will allow them with the best quality service in
the process. This is possible only when the firm possess an effective procurement
management and it can be seen that Air New Zealand Limited possess an effective
management. This is sole reason that the organization is able to operate so effectively in the
marketplace and assist them to gain the success in the process. Therefore, the firm requires to
look after all the aspect which will be assisting them to become successful and lure more
number of customers as well as vendors to collaborate with them.

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References
Bingham, A. H., & Lawrence, H. J. (2018). Reporting on air quality in New Zealand: Our air
2018. Air Quality and Climate Change, 52(4), 11.
Davies, A. J., Sadashiva, V., Aghababaei, M., Barnhill, D., Costello, S. B., Fanslow, B., ... &
Ranjitkar, P. (2017). Transport infrastructure performance and management in the
South Island of New Zealand, during the first 100 days following the 2016 Mw 7.8
“Kaikōura” earthquake.
Fleming, Q. W. (2019, January). Project procurement management: contracting,
subcontracting, teaming. Project Management Institute.
Staal, A. (2019). Managing innovative suppliers: exploring variables and procurement
practices in New Zealand construction supply chains.
Tham, A., & Evers-Swindell, B. (2018). Stand Up and be Counted—A Diverse Economy
Perspective of Air New Zealand. Tourism Planning & Development, 15(5), 567-583.