Emirates Airlines: Inventory Management for Competitive Advantage Presentation

Long-term service

• Long-term service agreement with Parker Aerospace (maintenance support to Emirates Airline):
  • Hub and various outstations;
  • Guaranteed repair turnaround times;
  • A local support team;
  • An in-region inventory pool.
• Service agreement outcomes:
  • Enhanced efficiency in global operations;
  • Offers cost predictability;
  • Enhanced services;
  • Increased product performance for Emirates’ fleet of Boeing and Airbus aircraft;
  • Providing global reach.

Effective inventory management

• Well established and comprehensive supply chain;
• Ensures that Emirates meets and often exceeds internal customers’ expectations of product availability;
• Minimizing costs;
• Easily accessible by global customers;
• Support from network of stores and distribution centers;
• A focus on customer satisfaction.

Formulation and implementation of appropriate strategies

• Service management:
  • Providing unsurpassed world class customer service;
  • Using advanced technology,
  • Offering excellent in-flight comfort for its passengers;
  • Must strive to catch up with other world class service providers;
• Financial analysis for Emirates focuses on main activities (ABC Analysis):
  • Commercial air transportation, including passenger, cargo, and postal;
  • Carriage services;
  • Wholesale and retail of consumer goods;
  • In-flight and institutional catering;
  • Hotel operations;
• Human resources:
  • One of the largest employers in the Gulf region:
    • Increased workforce from 28,686 in 2010 to 84,000 in 2015;
    • Emirates boasts of low human resource costs compared to the industry.
• Emirates fleet management:
  • Operates all wide-body, larges fleet from Boeing and Airbus;
  • Places the largest aircraft orders;
  • Emirates’ fleet is one of the youngest in the skies;
  • Increased fleet numbers to build on its on-time departure record;
  • Unmatched comfort;
  • Has limited airport congestion.
• Supplier relations:
  • Emirates believes in good and enduring relationships based on trust;
  • Sustained robust relations during economic turbulence;
  • Attract a large number of suppliers ready to work.

Leverages ICT solutions

• Modern logistics systems ensure that all types of goods are shipped and received on time.
• Reduces inventory holding costs.
• Ensures the automatic replenishment of high-usage and non-repairable parts of fleets.
• Captures material consumption information in real-time.