The economic terms supply chain management and operations management are interconnected; the former is an integral part of the latter. SCM is a set of well-organized processes, which includes integrating effective planning and all participants, the right combination of suppliers, distributors, manufacturers, and sellers. All parts of the mechanism are designed to work organically in order to generate income. OM is responsible for the deliberate transformation of materials, information, or customers, also aimed at the successful functioning of the entire production chain. The article “London Southend Airport: Bosses ‘agnostic’ as Ryanair closes commercial base” aims to inform about the company’s incorrect strategy in terms of SCM, which led to reducing one of the commercial bases.
Due to the world situation of the pandemic, the company had to make concessions to prevent the spread of infection, which include restricted flights, flight cancellations, and new restrictions related to new realities. “Ryanair” initially operated with two aircraft, but the performance was further impacted after the cutbacks caused by the pandemic (Casey, 2021). The well-established management concept, consisting of an integrated approach to planning and managing all flows of products and services, production processes of the enterprise, was changed. As a result, the airline suffered losses and announced the need to close its commercial base.
To conclude, in order for the commercial bases of airlines to be confident in the economic effect of the services provided, they need to not only adhere to OM / SCM strategies. The primary operations can be to reduce costs and meet the demand for final products and services, implying effective planning. It is also necessary to consider the constantly changing complexity of the market and economic parameters today in connection with the pandemic, what failed to do the company in the analyzed case.
Reference
Casey, D. (2021). London Southend Airport: Bosses ‘agnostic’ as Ryanair closes commercial base. BBC News.