Supply Chain Management
The Supply Chain is “the management of resources to supply the product and service needs of the end consumer, encompassing the supply chain of any physical products and the exchange processes involved.” (Davies, 1993).
RA has categorized it’s suppliers as ‘exit’ (Custom Textbook, 2006). This meaning they are looking to cut down costs and improve performance. BA works on having a long-term relationship with their suppliers this being more beneficial for the customer. Managing cost is not as imperative as quality. Procurement is an efficient way to manage these elements and can improve customer satisfaction by identifying customers’ needs and reduce operation costs (Croom, Johnston, 2003). An example is BA’s swap from their caterer’s Lindt to Lily O’Brien (Jobber, Fahy, 2006:119). This was done to improve quality for passengers.
RA have excluded travel agents, as part of their intermediary. This meaning they use their own services, the internet, which......
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