American Airlines Supply Chain Analysis

Typically, most businesses were trying to transform/update their outdated systems to a well behaved supply chain system operation. Frequently, current systems does not meet the evolved modern requirements of the business; and American Airlines is in the similar struggling phase which is a barrier for efficiency work flow system. For instance, if the company needs to switch the inbound shipment, Lack of transparency can turn a simple judgment to redirect the component to another port which has a direct impact on the whole supply chain and may result in greater cost and reduced efficiency. As a big fish in the market, they need to have a system which can pop up the cost for every decision option in an instantaneous manner.
Transparent System
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For Instance, when there is new entrant or a merger happens in the industry there would frequent delivery of a component meaning that the component number could be changed. American Airlines system will not be aware of those changes and there will be a mismatch which requires manual clarification in the inventory system. It is time consuming with which supply mismatches the demand and also a time consuming process, needs extra labor.
4.2 Flexibility:
In the Aviation industry, demand uncertainty is high. For Example: A Flight that needs a component is put on hanger in Hong Kong China and it needs a part that has to come all the way from Dallas Fort Worth facility. This is unpredictable because it is highly impossible to determine the probabilistic nature demand quantity, types, location and timing. Now the legacy system of American Airlines does not have the capability to tell the user which is the next carrier that can carry the component to Hong Kong from Fort Worth.
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While accuracy is prerequisite most of the time the System inventory and physical inventory didn 't match, which resulted in inaccurate financial statements. An inventory database comprises of part number, local identification number, quantity that is ready to deliver. When this quantity is different from the physical quantity available then there is inaccuracy in the inventory system. Though AA has periodical auditing by counting the parts physically, it is time consuming process and yet, they found it to be inaccurate. This discrepancy in inventory also results in inaccurate financial

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