A Review of Logistics and Supply Chain in the Airline Industry

This report presents a literature review on logistics and supply chain management, specifically within the context of the airline industry. It begins with an introduction highlighting the challenges faced by organizations in maintaining their image and reputation in a globalized market, emphasizing the importance of efficient supply chain management. The report then delves into the components of supply chain management, including problem formulation, literature search, data evaluation, and analysis, with a focus on the airline industry's specific challenges, such as workforce issues, communication barriers, and market dynamics. It explores the concept of supply chain management, related theories like the value chain process (inbound logistics, operations, outbound logistics, marketing, sales, and services), and their impact on organizational performance. The review synthesizes existing research, identifies gaps in the literature, and suggests future research directions, providing a comprehensive overview of the subject matter. The report underscores the critical role of effective supply chain management in enhancing organizational performance within the airline industry and its implications for businesses operating in a competitive global environment.

Running head: LOGISTICS AND SUPPLY CHAIN
Logistic and Supply Chain
(Literature Review)
Name of the Student
Name of the University
Author’s Note

2
LOGISTICS AND SUPPLY CHAIN
Table of Contents
1. Introduction:................................................................................................................................3
2. Components:................................................................................................................................4
2.1 Problem formulation:.................................................................................................................4
2.2 Literature search:.......................................................................................................................5
2.1.1 Overview of the concept:........................................................................................................5
2.2.2 Related theories and concept..................................................................................................6
2.2.3 Impact of supply chain process on the overall organizational performance..........................8
2.3 Data evaluation:.........................................................................................................................9
2.4 Analysis and interpretation:.......................................................................................................9
3. Definition and purpose:.............................................................................................................10
3.1 Overall summary.....................................................................................................................10
3.2 Previous literature review........................................................................................................10
3.3 Literature gap...........................................................................................................................11
3.4 Future scope.............................................................................................................................11
Reference List:...............................................................................................................................12

3
LOGISTICS AND SUPPLY CHAIN
1. Introduction:
With the rapid progress of globalization, organizations have to face innumerable
challenges in maintaining image and reputation amidst competitors’ market threat. Maintaining
the superior quality of products as well as services is not the primary aim of a business
organization. The business experts focus on supply chain management very efficiently so that the
products can be reached to the proper destination within time. The overarching concept, supply
chain management implies a set of rhythmic flow both upstream and downstream of products
and services based on which the organizational managers associated with supply chain
department delivers the product to proper destination.
The current business scenario of global trend is going to be more challenging where the
customers have increased their level of expectation while receiving the services. Customers in
present scenario get innumerable substitutes before purchasing a particular product. Therefore,
the role of business experts is to make the entire operation process systematically. In order to run
a business in the airline industry the supply chain department has to be very much systematic
for maintaining entire transportation system effectively. As per the global trend, airline industry
is aiming to expand their business wings in different multinational countries. In order to maintain
the international business trends organizations are facing challenges in managing their entire
supply chain process.

4
LOGISTICS AND SUPPLY CHAIN
2. Components:
2.1 Problem formulation:
Tako and Robinson (2012) stated that the entire success of business in the airline industry
is highly dependent on supply chain management. Recently it has been observed that this
specific industry is facing innumerable challenges in collaborating with their workers within
supply chain department due to several reasons. The number of workforce strength within supply
chain process is not very high. Operation managers of supply chain division have to face
difficulties in maintaining entire transportation system effectively. Large number of business
organizations belonging to airline industry deal with international customers in order to expand
their business in the global market. Prajogo and Olhager (2012) opined that while shipping any
product to the proper destination the supply chain managers have to be dependent on services
provided by the employees. However, this specific problem has become a major concern within
this department.
Employees associated with this very specific department are facing challenges in
communicating with the organizational managers effectively due to cultural barriers as well as
linguistic barriers. Due to the communication gap, the customers would not get effective services
within stipulated time. Ultimately, it affects on the overall productivity of the organization. In
addition, one more crucial problem has been identified within the supply chain process of this
very specific business industry. The modern air transport industry intends to operate their
business within a liberal market context. Government controls over fares, taxes,, market entry as
well as capacity that is continued in numerous small countries. Recently it has been observed that
the organization faces challenges in maintaining equal rapport with suppliers due to gap of

5
LOGISTICS AND SUPPLY CHAIN
proper collaboration. As a result, the suppliers sometimes tend to provide low quality of raw
material. Myerson (2012) stated that customers after using the products tend to raise complaints
against the quality of brands. This very specific problem has become a serious issue due to which
researchers and practitioners have showed their concern for collecting appropriate data.
2.2 Literature search:
2.1.1 Overview of the concept:
Turrisi, M., Bruccoleri, M., & Cannella, S. (2013) stated that in today’s dynamic global
market trend, airline industry is facing innumerable challenges in maintaining their image and
reputation. People belonging to different geographical boundaries are associated within the
business process of airline industry. In order to expand the entire business wings in different
geographical boundaries the supply chain and logistics sector of an organization has to be very
much systematic. However, this very specific study has focused to make an in-depth overview
about the impact of supply chain management in enhancing the performance level of an
organization. It is undeniable that business experts have to focus on product transportation very
effectively. Gligor and Holcomb (2012) pointed out that supply chain is the systematic procedure
that involves suppliers to the retailers in delivering products and services within proper time.
The entire operation procedure is involved within entire supply chain management. This
very specific study has highlighted that the success of airline industry is not restricted within a
specific geographical boundary. Gunasekaran and Ngai (2012) stated that organizations with the
help of their innovative designs and product variety intend to expand the business wings in
different geographical boundaries. While expanding business in multinational countries the

6
LOGISTICS AND SUPPLY CHAIN
supply chain and logistic sector of this specific organization has to be strong. Large number of
employees has to be associated within the service process that can control entire operation
process. However, in last few years it has been observed that airline industry is suffering from
huge turmoil due to the lack of workforce strength. In addition, a logistic sector is constituted
with the people of different geographical backgrounds and attitudes. Therefore, their culture
differs from each other (Tayur, Ganeshan & Magazine, 2012). This kind of cultural
differentiation creates huge communication gap while interacting with each other.
2.2.2 Related theories and concept
Klose, Speranza and Van Wassenhove (2012) stated that a particular business industry in
order to maintain their entire operation process successfully tends to follow few significant
supply chain models and theories among which the importance of value chain process is most
prominent. Value chain process is the set of activities that an organization tends to maintain from
storing products to its distribution process. The entire method has to complete in a systematic
way with the help of which the business experts can deliver the service within stipulated time.
Value chain process is primarily constituted with five major ways including inbound logistics,
operations, outbound logistics, marketing and sales and services.
Inbound logistics:
Inbound logistics is the systematic method of receiving, storing organizing the inputs
systematically. Seuring and Gold (2012) opined that in order to store the airplanes in hangar
operation managers have to focus on the maintenance of those products properly. In order to
reduce the operation cost the business managers especially belonging to the airline industry
intend to maintain product storage system as well as product distribution system by using the

7
LOGISTICS AND SUPPLY CHAIN
advancement of technology. The operation managers have to maintain proper database on how
the time schedules of flag carriers should be settled so that passengers do not have to wait for a
long time.
Operations:
Islam et al. (2013) stated that the entire transformation activities that change from input
to output is otherwise named as operations. In order to make the entire operation procedure
systematic the organizational managers have to recruit sufficient employees in order to control
the entire business process. After manufacturing the product, the operation managers tend to
store the product to hangar for its maintenance. In order to maintain proper transportation system
the concerned shipping experts have to focus on maintaining proper data record regarding the
departure and arrival of flag carriers.
Outbound logistics:
Outbound logistic is the method of distributing the product from store house to
distributors, retailers or customers. The shipping department of the supply chain management of
airline industry is primarily responsible for transferring the carrier towards proper destination. As
a result, service users can receive the services within proper time.
Marketing, sales and services:
Winter and Knemeyer (2013) opined that along with maintaining the entire supply chain
procedure as well as operation process the business managers have to focus on marketing and
sales as well for introducing the product in global market. Especially, airline industry for
introducing the services in different multinational countries has to focus on promoting the brands

8
LOGISTICS AND SUPPLY CHAIN
and services in order to increase their sales volume growth. The competitive market of airline
industry is high as per global scenario. Therefore, in order to get competitive advantage the
business experts would have to focus on marketing and communication for rendering brand
familiarity.
2.2.3 Impact of supply chain process on the overall organizational performance
Different eminent scholars have provided their own opinion regarding impact of
changing global trends on airline supply chain. As per the opinion of Winter and Knemeyer
(2013), supply chain management leaves a major positive impact on the overall performance
level of a business organization. Supply chain managers are efficient enough in maintaining a
product flow. Supply chain management enables a particular company in improving the product
flow with the help of accurate demand and sales. It improves inventory management as well in
order to arrest the bullwhip effect and avoid underproduction. On the other hand, if the business
experts fail to control operation process properly due to the lack of workforce strength the entire
process of business has to face disastrous consequence. Ross (2013) stated that due to the lack of
communication within the airline industry, the employees associated within shipping sector
failed to provide necessary information to each other. In this kind of situation, the employees
failed to maintain co-ordination effective which left a major negative impact on the overall
service process of business.
2.3 Data evaluation:
While evaluating necessary data and information the scholars have provided numerous
opinions regarding the various aspects of supply chain management especially in the airline
industry. Wieland and Marcus Wallenburg (2012), in the article has portrayed that organization

9
LOGISTICS AND SUPPLY CHAIN
should not only focus in maintaining the quality of products as well as services. At the same
time, the business experts have to be concerned in maintaining product quality as well. In this
kind of situation, operation managers have to play major role for maintaining the entire supply
chain procedure so that product can be successfully delivered to the doorstep of the customers or
distributors. While maintaining the business of airline the business experts need to make their
supply chain process stronger for expanding the business in different multinational countries.
2.4 Analysis and interpretation:
This specific part has provided an in-depth critical analysis about the entire literature
review. After making an overall literature review it can be stated that supply chain leaves a
significant impact in enhancing the entire performance level of a specific business organization.
The overall study has focused to concentrate on the supply chain and logistic sector of airline
industry. It has been identified that airline industry is possessed with limited work force strength.
As a result, the supply chain managers fail to maintain the systematic flow of business.
3. Definition and purpose:
3.1 Overall summary
The study has focused to make an in-depth analysis about the importance of supply chain
management in enhancing the overall organizational performance in the global trend. In order to
deliver the product to the proper destination the business experts have to follow systematic
operation procedure in order to transport the product in low cost. In addition, the airline industry
has to focus on delivering the product in different multinational countries for achieving the
image and reputation of brands. Therefore, this very specific study has provided deep insight on

10
LOGISTICS AND SUPPLY CHAIN
how the business organizations belonging to airline industry have to face innumerable barriers in
delivering the products to the proper destination.
3.2 Previous literature review
In the article “Decision support systems for logistics and supply chain management,”
published by Gunasekaran and Ngai (2012), the author has primarily focused to emphasize the
overall factors that highly affect in maintaining overall supply chain procedure effectively. The
primary purpose of this specific article is to highlight why the companies do not follow
systematic operation process within the organization. In order to invest sufficient number of
workforce the organization should have economic strength. At the same time, the companies
need to use technological advancement as well for reducing the cost of operation. As a result,
business organizations belonging to this very specific industry have to face difficulties in
maintaining their supply chain process effectively.
3.3 Literature gap
This specific literature review has primarily focused to make an in-depth overview about
impact of changing global trends on supply chain of airline industry. At the same time, the study
has critically analyzed value chain management as well. However, various factors affecting the
implementation of supply chain management has not been discussed in this very specific study.
3.4 Future scope
This specific literature review as already stated is endowed with different limitations and
drawbacks. In order to conduct the entire literature review the opinion of scholars can be
presented in a critical manner. The articles should be chosen in such a way that review looks like

11
LOGISTICS AND SUPPLY CHAIN
critically analyzed. This very specific research work has focused to present the entire data from
various eminent scholars in a descriptive manner. Therefore, in future the literature review is
expected to be conducted critically so that different aspects of supply chain management can be
presented and discussed within the study.

12
LOGISTICS AND SUPPLY CHAIN
Reference List:
Bosona, T., & Gebresenbet, G. (2013). Food traceability as an integral part of logistics
management in food and agricultural supply chain. Food control, 33(1), 32-48.
Gligor, D. M., & Holcomb, M. C. (2012). Understanding the role of logistics capabilities in
achieving supply chain agility: a systematic literature review. Supply Chain
Management: An International Journal, 17(4), 438-453.
Gunasekaran, A., & Ngai, E. W. (2012). Decision support systems for logistics and supply chain
management. Decision Support Systems, 52(4), 777-778.
Islam, D. M. Z., Meier, J. F., Aditjandra, P. T., Zunder, T. H., & Pace, G. (2013). Logistics and
supply chain management. Research in Transportation Economics, 41(1), 3-16.
Klose, A., Speranza, M. G., & Van Wassenhove, L. N. (Eds.). (2012). Quantitative approaches
to distribution logistics and supply chain management (Vol. 519). Springer Science &
Business Media.
Lavastre, O., Gunasekaran, A., & Spalanzani, A. (2012). Supply chain risk management in
French companies. Decision Support Systems, 52(4), 828-838.
Myerson, P. (2012). Lean supply chain and logistics management. New York: McGraw-Hill.
Prajogo, D., & Olhager, J. (2012). Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics
integration. International Journal of Production Economics, 135(1), 514-522.