AVIATION

Logistics in the Aviation Industry

Logistics in the Aviation Industry

Introduction

The performance of logistics has positively impacted aviation industry from strategy adopted by supply chain. This strategy directly impacts the performance of marketing and financial performance. These results help to sustain the positive relationship between organizational performance and logistics performance inside the manufacturing sector.

In the 21st century, globalization, population, and technological advances in various sectors have assisted to establish tourism into one of the world's biggest industries. According to a study, the receipts of tourism have reached more than £1100 billion by the end of 2006. In addition to that, this aviation sector has generated more than 350 jobs. Since, the sector has the ability of generating income, taxes, currency and jobs, the industry of tourism needs to develop more to make a significant contribution to the country's economy across the globe (Evans,pp. 350-372).

Discussion

Re-Engineering the Logistics Activities

According to author perspectives, logistics re-engineering can bring about significant improvements in the order fulfillment of customers. They stress the point that re-engineering is not much about making incremental improvements to the existing processes, but rather to revolutionize those processes. For this purpose, the focus should shift from problem solving to proactive improvements. The re-engineered system in addition to carrying lesser inventory resulted in a cost reduction. Re-engineering has potential to bring about improvements in the system. The goals of the logistics system—effectiveness and efficiency are determined by a number of interrelated factors. The optimization of each of the factors may not optimize the entire system. Sobotka (2000) reported the use of simulation modeling in logistics re-engineering by taking the example of construction industry..Lai et al. (2003) reported the use of system dynamics modeling for analysis and comparison of re-engineering strategies of supply and logistic chains.

Comparison of Different Configurations

There are several steps are involved in reengineering the logistics activities. The first four steps develop a valid model of the present system. Generating alternative configurations involve the analysis of the present system and identification of improvement opportunities with which the alternative configurations can be generated. Comparison of different configurations involves using some measure of performance for comparing their effectiveness. The measure of performance may be related to the inventory across the chain, time required for transportation, cost, or a combination of all these factors (Baker,2010).

Study of Logistic Processes in the Organization

Clearing and Forwarding Agents (CFAs), otherwise called third party service providers, perform the logistics activities assigned to them by the logistics division of organization .Depots perform the same function as CFAs but they are owned and operated by organization. The logistics division of the organization places an annual brand-wise indent to respective factories, based on the annual brand-wise indent communicated to it by the head of each division of the marketing department, one month before the start of the new financial year. As soon as the materials are ready, factory transfers materials to CFAs/depots of the organization as per the instructions of logistics division. They also supply to distributors and provide samples upon instructions from the logistics ...