Logistics in the aviation industry is not limited to just airplane sales, production operations at the factory level, or parts distribution. It goes beyond to include pre-sale processes, storage, returns management, disposal of excessive inventory, and other supply chain concerns. Reverse logistics defines the course of moving products from end users to manufacturers for recapturing value or desirable disposal. In the aviation industry, a three-step reverse logistics approach may entail customer interaction strategies, transportation, and positioning initiatives, and value redemption plan. With the trend of e-commerce being so ubiquitous, the need for reverse logistics in the aviation industry is even more critical in today’s global world.
1. Reverse Logistics Analysis
Increased global demand for air travel has created raising demands for planes and their spare parts. The Global Market Forecast estimates world 's total passenger aircraft inventory to grow to more than 36,500 parts by 2032 (Terry, 2014). With such undersupply and limited time frames especially from clients in the Middle East, the aviation industry is forced to outsource for materials from geographically diverse suppliers, posing a significant challenge in the logistics departments. Since the advent of aeronautics, regulations have often stressed on continuous research and development of products, making manufacturing be an expensive exercise that most companies are not able to do alone. For such
The purpose of the report is to assist Aircraft Solutions (AS) in indentifying the most significant Information Technology (IT) security vulnerabilities. AS products and services are at the forefront of the industry and the protection of such is very important as they are an industry leader. The vulnerabilities that will be discussed are the firewall configuration, virtualization of their
Weaknesses are a symptom that is prevalent in today’s information technology realm, indicating vulnerabilities and risks that come hand and hand with shared networks like Aircraft Solutions. With enterprises exchanging an unprecedented level of information over open networks, the vulnerabilities and possibility of compromised security by unwanted intruders is swelling up into a new type of beast.
Reverse Logistics: the movement of products, materials and informations in the opposite direction for the purpose of
The essay will firstly introduce the organisation easyJet. Secondly the essay will explain about how easyJet uses its operation strategies and its competitive priorities. Finally the essay will discuss the most important operation decision and explain it further in detail. easyJet is a well known low-cost airline which operates in several European countries and has been founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995. easyJet undertook intensive research of a United States owned low-cost airline ‘Southwest Airline’. Most of the concepts for easyJet were adopted from Southwest airline; however easyJet added its own touch which reduced operating costs even further. EasyJet was strategically located at London's Luton airport.
Aircraft Solutions (AS) is a recognized leader in the design and fabrication of component products and services for companies in the electronics, commercial, defense, and aerospace industry. The mission of AS is to provide customer success through machined products and related services, and to meet cost, quality, and schedule requirements.
The Transportation industry and aviation in particular have tremendous effects on the environment. This effect includes noise, quality of air, impact on the climate, pollution and energy waste, and water disaffection. The FAA is using an Environmental Management System (EMS) approach to help building strategies and helping future
The United States Army utilizes a logistics system for aviation known as Unit Level Logistics System-Aviation (Enhanced). This logistics system is used in Army aviation for a multitude of highly important practices and processes required to keep Army aircraft flying. The United States Army depends on this logistical system both home and abroad to remain the most combat ready and advanced warfighter in the world. An important aspect of the technologically advanced logistics system is the ability to interface with all other Army logistic systems and advanced aircraft. Other Army logistic systems will be discussed in this research paper to show how all the different logistic systems work together. Army aviators, aircraft crewmembers, managers,
There are a multitude of aerospace manufactures in the business of building airplanes worldwide such as Boeing and Lockheed Martin. In order to become a global leader in an ultra-competitive market, such as the aerospace industry, Boeing implements cost reducing initiatives such as lean manufacturing practices. In order to build a complex item such as an airplane on time and on budget, a manufacture will require a competent supply chain management system to ensure all the needed parts are available to the builders. Implementing technology such as automated equipment to assist in the reduction of human errors and fatigue will reduces costs associated with rework caused by human error mistakes.
The general Aerospace inventory network can be grouped among OEMs, Tier 1 suppliers, Tier 2 suppliers and Tier 3 suppliers. Customarily, substantial airplane makers frequently alluded to as OEMs, will indicate their needs to the Tier 1 suppliers. OEMs are in charge of general outlining and assembling, which are regularly alluded to as the most basic segment of the worth chain and every now and again confront section obstructions because of high speculation necessities and innovative abilities. Level 2 suppliers produce flying machine parts as per the Tier 1 suppliers' particulars. Level 3 suppliers are in charge of giving fundamental segments needed by different sellers that are available higher in the worth chain. Be that as it may, with the
First Logistics Aviation Supply Office was established on October 1, 1941 in Philadelphia, Pennsylvania with 200 civilian employees and 14 officers (NAVSUP Weapon Systems Support, 2013). Their mission is to support navy aviation and weapon systems. Aviation Supply Office’s number of employees has grown to 5, 332 civilians, 507 officers, and 676 enlisted personnel four years later since they opened on October 1, 1941 (NAVSUP Weapon Systems Support, 2013). On October 2, 1995 Aviation Supply Office merged with Ships Parts Control Center from Mechanicsburg and changed their agency’s name to Naval Inventory Control Point. According to the Department of Defense, “the purpose for merging was to bring together all of the Navy’s Program Support Inventory Control Point function under one command. This was also supposed to reduce cost and infrastructure to standardized inventory management procedures” (NAVSUP Weapon Systems Support, 2013). On July 1, 2011, Naval Inventory Control Point changed its name again to Naval Supply Weapon Systems Support. Naval Supply System Command wanted all to be under One Naval Supply, “Enterprise-wide branding initiative where each Naval Supply activity supports the ‘Global Logistics Support Network’ as a node in the network vice as individual entity. No organization structural changes were made” (NAVSUP Weapon Systems Support, 2013).
In reverse logistics, the design, control, and operation of a recovery value system will reflect the whole life cycle of a product. This is the concept of closed-loop supply chains, in which zero-waste is achieved in the “forward flows of materials (from suppliers to end customers) and the reverse flow of products (post consumption) back to the manufacturing or distribution supply chains” (Book p.151-152). Reverse logistics supports closed-loop supply chains and coordinating the chains to achieve (or maintain) competitive advantage. A fragmented chain, where each member is only focused on its own processes, is considered a key Supply Chain Management problem. It is not wise for Sandvik to fragment, or decouple the forward and reverse supply chains.
Airlines use a formula of combining their yield and inventory costs to determine ticket prices. While it is imperative to focus on the idea of being profitable, the focus is to maximize the cost of the flight revenue. One huge factor that encourages an increase in the cost of tickets relates to a customer ordering a ticket close to the departing date, define this as a risk factor because they need to make up for all unsold seats. A high percentage of the revenue is dedicated to overhead costs such as fuel and labor. When a ticket price is higher with one airline than the other, the customer interprets this as being an excessive cost. The demand is greatly affected by the external market
The field of aerospace, and by extension the aviation industry, is helping the world grow more interconnected every day. But while air travel has greatly increased the speed at which people can traverse the globe, unfortunately the same is true for the rate at which diseases spread. The rate of a disease’s spread is directly related to the spread of people, something which Station Eleven uses to justify the quick spread of a devastating pandemic. In Station Eleven, commercial aircraft were responsible for the initial transport of the flu across the globe. Furthermore, the entire aerospace industry is depicted as largely helpless in the wake of the global outbreak. The flu causes a collapse of the industry’s infrastructure and Mandel implies that in the event of any global catastrophe, not just a flu, the industry would act as a liability. While it is true that that increasing rate of air travel poses a safety risk in the event of an outbreak of a contagious virus, the aviation industry and the field of aerospace as a whole would not be a liability. To give the industry its due diligence, one must examine both sides of the issue. Air travel permits society to more effectively combat diseases, as it facilitates the transport of researchers and scientists to areas of infection, and furthermore, aerospace technologies have frequently been adapted to be used in the fields of medicine or to improve public health. Many technologies that are used every day and that improve the
There are many aspects that aviation industries must consider when it comes to ethical practices. From environmental factors and proper maintenance to business standardizations and policy practices. In today’s markets the edge to a successful business can be determined on who is willing to abide by the rules rather than those who are willing to bend them. For decades this has been a struggling part in the aviation industry. Defense contracts, environmental complaints, social disturbances and failures to apply proper practices in maintenance has caused many to doubt the industry itself. Over time the aviation industry has had to come up with solutions to all these problems at the same time making a profit to sustain their operations.
Air freight market is not stable and might be weak because of uncertain international trade increase (Barnard,2015). There was fluctuation in air cargo demand over the last 10 years from 2006 to 2016 which indicates that cargo demand could be changed by some external and internal influences. Some figures were released about worldwide air freight market and presented that air cargo capacity increased 2.2%, comparing to 2014. While this was the 5% growth calculated by The International Air Transport Association (IATA), the growth of cargo volumes in 2015 was much slower than 2014(Barnard, 2015). However, some experts pointed out that global air freight market get a positive growth from 2011, and it is enjoying a relatively steady growth, due to the enhanced trade and economic recovery after the global financial crisis of 2008(Huang,2016). Because of sluggish world trade growth, air cargo suppliers face a lot of challenges including alternative transportation, perspective uncertainty and unexpected policy and here are some potential solutions: improving customers service, efficiency, security and reducing negative environmental impacts.