Benefits of Supplier Relationship Management at Etihad Airways - Example

The paper “Benefits of Supplier Relationship Management at Etihad Airways” is a brilliant example of the report on management. This report assesses the benefits of implementing supplier relationship management at the procurement and supply division of Etihad Airways. Beginning its operations in 2003, the Abu Dhabi based Etihad Airways has flown more than 17.4 million passengers in 2015 alone. The airline is planning to serve more than 116 cargos and passenger destinations in all the continents with a fleet of around 120 Boeing and Airbus aircraft. The company is adopting best practices in supplier relationship management and it would be essential to understand some of the benefits it would get by implementing change, category management, and supplier management systems. The specific areas covered by this report include; supplier performance management, supplier qualification and accreditation, supplier collaboration, supplier development, and supplier risk management. A number of techniques in change and category management are employed.

The key terms are;
Supplier relationship management (SRM): Managing interfaces between the organization and firms supplying services and/or goods to maximize value.
Supply chain management (SCM): supply chain mechanics of how services or goods are produced and delivered.
Value: Competitive workspace that maximizes supply and demand

Relationships built in the supply chain support and work towards a financially beneficial and effective environment. Although it is a costly and complicated process, selecting a supplier of services and goods needs good preparation and implementation so as to engage the most suitable provider (Bensaou, 2003). After the contract award or order placement, it is important that Etihad Airways establishes mutual and beneficial relationships between customers and suppliers for the successful delivery of goods and services.

1.1 Background: Etihad Airways
The organization provides cargo and passenger freight services to several destinations globally and falls in the airline industry. The company is owned by the Etihad Aviation Group. In 2014, the airline made a net profit of $73million from total revenues of $7.6billion (Etihad Airlines, 2014).