Supply Chain Management: Virgin Australia Airline Analysis Report

This report provides an analysis of the supply chain management of Virgin Australia. It begins with an introduction to the airline, identifying its characteristics, strengths, and weaknesses, along with its supply chain and logistics goals, operations, and issues. A literature review is included, discussing how similar supply chain and logistics challenges are addressed in other case studies. The report details the research methodology the student would adopt, including the types of tools, methods, and data collection techniques (primary and secondary data collection) that would be used to address the supply chain and logistic issues of Virgin Australia. The analysis covers economic impacts, operational activities, competitive issues, and customer satisfaction, referencing relevant academic sources. The report aims to provide a comprehensive understanding of Virgin Australia's supply chain challenges and potential solutions.

SUPPLY CHAIN MANAGEMENT: VIRGIN AUSTRALIA
AIRLINE
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Table of Contents
Part A:........................................................................................................................................2
1. Introduction / background of the organization identifying the characteristics, strengths,
and weaknesses of their supply chain and logistic goals, operations and issues:.....................2
2. A literature review describing how such supply chain and logistics issues are addressed in
other similar case studies found in literature:............................................................................2
3. Research methodology you would adopt and identify the type of tools; methods and data
collection techniques that would be used to address the supply chain and logistic issues of the
organizations:.............................................................................................................................4
Works Cited...............................................................................................................................5
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Part A:
1. Introduction / background of the organization identifying the characteristics,
strengths, and weaknesses of their supply chain and logistic goals, operations and
issues:
Virgin Airlines Australia is considered to be the second largest airline's company, just next to
Qantas. This famous airline is mainly based in Brisbane and was established in 1999. This
brand is renowned mostly for the fleet size which is recorded to be 115. Destination location
of this brand is known to be 52. Virgin Australia Holdings is the parent group of
Virgin Airlines Australia. This organization has gained significant fame and reputation by
achieving good product value and customer response within a short time. The company is
now able to earn revenue of AUD 4.7 billion in a year (Virginaustralia.com, 2017). This
figure is quite impressive for attaining success in the industry. This organization has enough
potential of availing AUD 49 million of operating income in a year which is threatening
enough for the existing brands. The main strength of the company lies in its efficiency of
handling operating varieties with special care by managing organizational benefit and public
satisfaction in a parallel manner. However, the rates of packages and journey expanses are
merely high. Thus, it fails somehow in attaining proper customer response. The total asset
and equity share of the company are impressive enough in making passengers secured of their
safety and care related facts. Thus, the company has enough competitive advantage for
attaining future sustainability.
2. A literature review describing how such supply chain and logistics issues are
addressed in other similar case studies found in literature:
Author has opined that the global economy is deeply influenced by the industrial impact.
Thus, airlines face severe constraint in upgrading and continuing their services(Croom,
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Romano & Giannakis 2011). It impacts in the profit margin and operational activities of the
company. The crisis may be economic, as the financial crisis of 2007 has caused in decline of
profit and challenged the activities as well as desired business structure of the company.
Author remarked that the efficiency of Virgin Australia has been interrupted by the economic
degradation and the inventory operations were also disturbed by raising the cost, reduced lead
time, switching cost (Craighead et al. 2017). The airline's companies mainly face competitive
issues in fixing of prices and offered services. As pointed by researchers, such brands
confront severe issues and constraints by the raising operational costs that interrupt the
growth and budget specific up gradation of the company (Van Wassenhove & Pedraza
Martinez 2012). These issues are the high concern for the airline companies as the
consolidations and terms are strictly governed by the external factors of it. Author mentioned
in his comment that, buffer stock can also create crucial issues in the smooth journey of
airlines companies like Virgin Australia(Tang 2016).
The systems and regulations of airlines are strictly governed by distinctive policies and
system chains (Lin 2013). There are several types and terms and conditions with respect to
the employee management and customer security system. The customer satisfaction policies
are designed in segmentations so that the right of every individual can be protected.
Therefore, the business and procedure of airlines need to follow strategic sourcing in relation
to the development of this industry. The Aeroxchange system is also sub-divisional under
different segmentations. As remarked by author, the development and future of the industry
are keenly impacted by these above-stated issues and thus, these require deep
concern(Christopher & Holweg 2011).
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3. Research methodology you would adopt and identify the type of tools; methods and
data collection techniques that would be used to address the supply chain and logistic
issues of the organizations:
The logistic issues and the supply chain in regard to Virgin Australia needs to undergo a
thorough research so that the problems can be solved permanently. For that purpose, the
collection of data is immensely required for identification of related factors like trend and
demand of customers, their personal choice, the contemporary trend of the market, market
situation and specification as well. Therefore, a distinctive way of collecting data needs to be
selected. Data collection can be of two types: primary data collection and secondary data
collection. To resolve issues of supply chain and logistic, the secondary source of data is
mostly effective. This kind of data will be helpful providing real data and reaction of people
(Christopher & Holweg 2011). This will help generate actual feedback and condition of the
present scenario of a market. Visiting websites of helpful companies may be significant in
generating valid data.
Therefore, secondary data collection method for the research is selected here. Interviewing
the employees, crews and managers of the company may also be a helpful source in this case.
Gathering information on the repeatedly arising problems and issues and the source of those
constraints will help identify the way of the solution. Therefore, non-verbal communication
that is primary communication through e-mails and phones, then verbal communications for
interviewing the managers and investors will be applied. For the entire purpose, 25
respondents including 15 employees, 5 managers, and 5 investors have been targeted to
proceed through the process.
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Works Cited
Christopher, M & Holweg, M, 2011, '“Supply Chain 2.0”: managing supply chains in the era
of turbulence', International Journal of Physical Distribution & Logistics Management, vol
41, no. 1, pp. 63-82.
Craighead, CW, Blackhurst, J, Rungtusanatham, MJ & Handfield, RB 2017, 'The severity of
supply chain disruptions: design characteristics and mitigation capabilities.', Decision
Sciences, vol 38, no. 1, pp. 131-156.
Croom, S, Romano, P & Giannakis, M, 2011, 'Supply chain management: an analytical
framework for critical literature review', European journal of purchasing & supply
management, vol 6, no. 1, pp. 67-83.
Lin, LC, 2013, 'An integrated framework for the development of radio frequency
identification technology in the logistics and supply chain management', Computers &
Industrial Engineering, vol 57, no. 3, pp. 832-842.
Tang, CS, 2016, 'Robust strategies for mitigating supply chain disruptions', International
Journal of Logistics: Research and Applications, vol 9, no. 1, pp. 33-45.
Van Wassenhove, LN & Pedraza Martinez, AJ, 2012, 'Using OR to adapt supply chain
management best practices to humanitarian logistics ', International Transactions in
Operational Research, vol 19, no. 1-2, pp. 307-322.
Virginaustralia.com, 2017, VIRGINAUSTRALIA, viewed 15 Augut 2017,
<https://www.virginaustralia.com/ae/en/_cookiesAcceptance/>.
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