Review of American Airlines Article - Assignment Example

Transport Packaging and Warehousing in American Airlines Introduction Supply Chain Management is the centralized point in an organization where resources and materials are handled from and intended to make the production smooth with reduced costs of production and quality enough to meet customer’s desire. Shah (2009) emphasizes that, it is composed of all the businesses carried out in an organization including human contributions to production from raw materials to finished goods. It is the key to every organization in order to control quality of the products, stock levels and the costs in production.

Globally, the supply chain management requires international relationships among different countries involving tariff laws and quality control (Swift, 2001). Many competitors try to lower the prices of their products while maintaining the quality, therefore, the supply chain management monitors where the other companies procure its materials in order to bridge the gap effectively and efficiently. In addition to that, it puts into consideration the operational procedures used by the other companies from the starting point to finished goods with the aim of identifying the costs and unwanted procedures.

All the operations carried out in the Supply Chain Management increase the company’s efficiency and its production cost-effective with the purpose of increasing profits and customer value as well as developing reliable advantage over competition. Any failure from the supply chain management causes effects to the other units in the organization. Transport Packaging with Effect to Customer Attitude Package of a product has effects to customers dealing with that product. As well, transport duration also influences customer attitude.

If the lead time is too long, customers will be bored waiting for that product and decide to shift to other competitors. If in any case the goods are damaged during transportation or delayed, customers will reject them. Due to rapid increase in competition, companies should make a step to better packaging in order to differentiate themselves and improve customer’s experience in their goods and make their businesses famous with a positive retailer reputation. According to Johnson & Bade (2010), packaging plays a very critical role in customer perception of a product.

Customers believe that, the better the packaging, the better the product enclosed inside. It also reflects the retailer’s concern on the customers and their order needs. Growth of global e-commerce is rapidly increasing the role of packaging hence increasing the customer desire especially the packaging that is environmentally-friendly. Warehousing This is a big construction or building where the manufactured goods are stored before they are dispatched or exported for sale. The reason as to why goods are stored in the warehouse is to add value in terms of effectiveness and efficiency.

Warehouses add efficiency by combining products for shipment to its customers hence reducing transport costs thus broad range of value added services (Dyche, 2000). It is the determinant point of design and operation. All the customer orders and transportation mode are determined at this point. It should provide goods at the required quality and quantity, and ensure timely delivery at the right place, at the right cost and in that matter, competitive costs. Transport Packaging with Impacts to American Airlines Profitability can be increased by eliminating unnecessary losses through hidden costs by maintaining production schedules thus affording savings in packaging.

Both import and export departments work hand in hand with each other in order to plan effectively and efficiently the freight procedures to be followed (Holloway, 2008). Transport packaging will help the regulators by ensuring effective packaging for both supplies and equipment shipped thus improving profitability by purchasing only the cost effective supplies. Packaging of products reduces space and, therefore, freight will be able to carry many goods at a go. Through packaging, there will be baggage allowances that will make exporters more interested to keep on using this mode of transportation package hence increased profitability.

Package help in protecting goods from damages especially sensitive goods, therefore, impressing the customer with quality products thus attracting them to use it more and more hence increasing profitability. Warehousing with Impacts to American Airlines Due to increased distribution global systems, warehousing is important since it helps in upholding the goods for the purposes of value addition and reducing transport costs through combing the customer orders to be transported at the same time, and thus increasing the organization’s profitability through reduced transport costs.

Warehouses ensure the availability of goods to avoid shortages that may lead to unnecessary costs when customers order and there are no available goods which may lead to emergency production. Conclusion It is important for Airlines or other organizations to practice packaging because it will always create a positive attitude to customers that make them perceive the product as the best thus buying more of it leading to increased profits. In logistics, warehouse is important because it adds value to goods stored and reduces costs such as transport cost hence improved profits.

References: Dyche, J. (2000). E-Data. Turning data into information with data warehousing. Reading, Mass: Addison-Wesley. Holloway, S. (2008). Straight and level: Practical airline economics. Aldershot, England: Ashgate Pub. Johnson, T. & Bade, D. (2010). Export/Import Procedures and Documentation. New York: AMACOM. Shah, J. (2009). Supply chain management. Upper Saddle River, N.J: Pearson Education. Swift, R. (2001). Accelerating customer relationships. Using CRM and relationship technologies.

Upper Saddle River, N.J: Prentice Hall PTR.