American Airlines Case Analysis

1115 Words 4 Pages
Typically, most businesses were trying to transform/update their outdated systems to a well behaved supply chain system operation.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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Suppliers play vital role in production process of the business. There should be a flat coordination between the supply and demand. Specifically, in Aviation Industry it is very important to have readily available supplies.
To be certain, the supply chain system should be aware of lifecycle status of each component in terms of regulation change, and new part number. 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.
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Therefore, it is essential to know and predict the future requirements at least for a short period of time. This can be acquired only through the transparency and communication on the supply chain. But at American Airlines lack of visibility and transparency, which has resulted in failure to predict future supply requirements and resulted in either under supply / oversupply of parts at various

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