Discuss about the Essay for Transportation and Distribution Management of Singapore Airline Limited.
The assignment depict to frame a transportation and distribution management system of the selected organization namely as Singapore Airline Limited. The assignment is going to briefly describe the brand value of the organization along with its product, target marketers, competitors throughout the world and strategies they avail to reach the ultimate objective of the organization. The assignment is also going to illustrate the effectiveness of transportation capabilities and transportation goals of Singapore Airline Limited. On the other hand, it will also provide recommendations to build strong bond to other companies that is required to improve the overall transportation system of the organization.
Singapore Airline Limited is one of the most known Airlines organizations throughout the world. It was founded in the year of 1947 as Malayan Airways and from 1972 it started as Singapore Airlines Limited (Singapore Airlines, 2016). The organization includes many subsidiaries such as Budget Aviation Holdings, SilkAir, Singapore Airlines Cargo etc. The organization serves best services to its customers throughout the world. They serve different class of services to the consumer such as first class, business class, premium economy class, economy class. Most importantly they serve homely environment within the flights with comfortable sitting arrangements, nice food quality, widescreen LED television etc. Currently they are providing another service to the clients that are they can make phone calls, text messages and access internet service with a capable cost (Kamisan & King, 2013). They are having an official collaboration with Rolls Royce. The organization knows different ways in which they can enter to the foreign markets to increase their global competitiveness. The major competitors of the organization are all the low cost carrier flight companies such as Changi-JetStar, Tiger, AirAsia, FirFly and Cebu Pacific (Heracleous, & Wirtz, 2012). The objective of the organization is to build a secure communication with the consumers through (Customer Reservation System) CRS and to achieve the top most position among all other airlines companies throughout the world.
Analysis of effectiveness of transportation capability of Singapore Airlines Limited
From the analysis of Singapore Airlines Limited it has been found that the success of transportation capability of this organization is very high among all airline organizations (Ochieng, Njanja & Riwo-Abudho, 2013). However, certain issues such as overcapacity, cutthroat rivalry, entry of other low cost carriers, and commoditization of offerings have occurred that plagued the Singapore Airline Limited. According to Baker (2013), some socio economic factors such as frequent price rise of oil, eruption of natural disasters, SARC crisis etc affected Singapore Airlines Limited.
Services provides by Singapore Airlines Limited
Singapore Airlines Limited along with its subsidiaries provides passengers and cargo air transportation services in East Asia, Europe, West Asia and Africa (Heracleous & Wirtz, 2012). Apart from this the organization also provides engineering services they arrange required training and development programs to its pilots of Singapore Airlines Limited. Chen, (2013) stated that it also provides technical, non technical trainings to the employees of the organization. The company is committed to partnership with many other working organizations such as the government agencies, biofuel producers as well as suppliers and to other stakeholders. In order to overcome strong challenges and they are adopting sustainability strategies in the global marketplace (Oum & Yu, 2012). The market revenue structure of Singapore Airlines Limited will show the effectiveness of transport capability.
Incoterms is also referred to as sale. This is the initial step in responding to trade lead or starting. It also represents certain financial responsibilities to the buyer and seller in the import and export transaction system. International chamber of commerce (ICC) had provide harmonized interpretation rules for common 11 trades and the organization must select the best suited options regarding transportation. Being a transport manager the provided recommendations are as followed:
Delivery at terminal: Considering Incoterms (2010), the sellers should deliver the goods unloaded at the airport terminal or another place of destination in the buyer’s country. The organization must specify the point where the seller and buyer have chosen for delivery.
Delivered duty paid: Organization must deliver on the duty made by the employee of the organization. The rate of employee disengagement is highest in the travel and tourism industry. Therefore, the organization should pay the employees according to their duty within the given time period.
Cost, insurance and freight: The Company should engage cost, insurance and freight to their employees. Insurance of the employees will encourage them to get attached with the job.
Deliver at place: The delivery of the products and in this case, the consumers of the company must be reached to their desired destination on time and to right place. Singapore Airlines Limited is a well known company but though they must ensure the safety and security of the clients.
Carriage and insurance pay: The seller must provide the goods and the commercial feedback or its equivalent electronic message in conformity with the contract of sale and any other evidence of conformity that might be required by the contractor.
Transportation goals and needs of Singapore Airlines Limited regarding carrier criteria selection
The transport and carrier selection is completely based on the transport management system regulated by Singapore Airlines Limited (Wensveen, 2016). Every transportation management system should hold some of the consideration in order to achieve their ultimate goal. Transportation and carrier selection criteria are one of the most important aspects related to Singapore Airlines Limited or for any transportation company (Pearson, Pitfield & Ryley, 2015). The goals and need of the organization are as followed:
Development of selection criteria: The goal of the organization is to achieve the best possible transition cost with maximum rate of customer satisfying services in order to achieve the ultimate objective the company selects the best mode of transition in terms of cost, special needs, and special need of the consumers (Sengupta & Sengupta, 2014). Apart from this, they also consider certain specified shipment related problems that are needed to overcome by Singapore Airlines Limited.
Comparison of available alternatives: Appropriate mode of transport is needed to be selected by the organization in order to match the shipment characteristics (Bowen, 2016). This purpose can be served by the transport managers of the organization. Transport carriers are always selected on the basis of the performance documentation that is relevant to the flexibility, reliability, and speed of the transport. The carrier selection criteria are relevant to many aspects from the transportation point of view. Alternate options are always available for the transportation system of this organization (Stauss, 2013). As this is the Airlines organization thus, traffic related, shipment related and service related aspects come under consideration. The carriers of Singapore Airlines Limited are selected on length of the haul, fragility and type of the packing perspectives.
Carrier selection for Singapore Airlines Limited: Another objective of the organization is to choose some of the specific characteristics those are able to make an organization more reliable and loyal to the customers (Heracleous & Wirtz, 2012). Speed, monitoring power, adoptable cost, customer relationship management and all time availability are the carrier based criteria selected by Singapore Airlines Limited. While considering the carrier selection criteria regarding transportation, the first and foremost thing that Singapore Airlines Limited thinks about is the service provided by the organization itself to its consumers.
While forming and developing the selection process the recommendations provided to Singapore Airlines Limited are as followed:
Judgment of Singapore Airlines Limited: The organization should identify all the paramount factors such as transport issues, different mode of transportation that might affect the transportation process of Singapore Airlines Limited. It should also make a list of all the available alternative carrier options in order to satisfy the consumers and to make secure the future of Singapore Airlines Limited. They should also consider transport as a service instead of distribution method.
Cost trade off process: They should consider the affect of transportation, as it is measured in relation to the total invested cost for the organization. This might optimize the distribution system of the organization. Among many options it chooses the best cost effective process.
Distribution process: They should identify the internal relationship between the factors of the distribution system in all the effective levels on daily or weekly basis. Apart from this, they must include the logical and mathematical condition that should use by Singapore Airlines Limited.
Systematic selection: According to the selected operational analysis they should make a clear experiment on the feasibility of Singapore Airlines Limited’s financial structure. The calculation should be validated by experts.
(Figure 3: It shows the flow of service done by Singapore Airlines Limited, refer to appendix 3)
Transportation goals and needs of Singapore Airlines Limited regarding carrier relationship management criteria
While considering the carrier relationship management criteria Singapore Airlines Limited maintains its own company norms and values in order to achieve the ultimate goal of the organization. Roy, (2015) stated that, partners in the carrier act as a glue that hold the business model together. For Singapore Airlines Limited the goals and needs are as followed:
Unique presence: The aim of the organization is to take care of all the basic needs and finding of the existing consumers (Heracleous, & Wirtz, 2012). Not only existing clients but also they want to engage maximum number of consumers to their organization in order to achieve the best user friendly service provider organizations in the world. They want to select best of the carrier partners to their organization and also want to maintain the existing partnership, as they are already collaborated with Rolls Royce Motor Car Company. The carrier relationship team of for Singapore Airlines Limited is working efficiently to provide good services to the clients.
Transparent partnership: The goal and need of for Singapore Airlines Limited is to build an effective partnership with existing known companies (Sengupta & Sengupta, 2014). In order to maintain the transparent partnership for Singapore Airlines Limited specifies a contract to a single company for each of the shipping methodologies. This method gives the organization to select the best service providing partner (Kamisan & King, 2013). The carrier relationship management is found to be enough effective from the organizational aspect as it is able to manage successful and transparent relation maintenance to the partners.
Freight management: Another goal of the organization is to build their, own rate base calculation instead of traditional or outsider rate based system (Hasan, 2015). Sometimes the dynamic changes are required to be adopted by the collaborative company’s freight management. It makes it possible without any interruption.
In order to mitigate the issues that affect the overall structure of Singapore Airlines Limited, being the manager of the organization, some carrier based recommendations are provided. While providing the recommendations regarding carrier relationship management of the organization it considers some issues. Such as rates and services offered by other Airlines company, loss, decay or delay on the departure and arrival time and some other parallel needs. The recommendations are as followed:
Work for win-win relationship: Singapore Airlines Limited should not bother about the management techniques rather they must concentrate on the working methods of their carriers. They should also consider the best suited lanes or freight for their carriers. In order to get additional income they should try to build long term and win-win relationship to their partners.
Commitments: Singapore Airlines Limited should hold their carriers to the pre defined commitments. If the determined criteria are not maintained b the partners then Singapore Airlines Limited should immediately reject the partnership relation to that company.
Sharing opportunity with Mix up relationship: The opportunities should be shared by Singapore Airlines Limited and its partners too. Joint benefit will raise more confidence to the employees working for the parental and partners both kinds of companies.
Use of technologies and communicate: In order to review the current position and revenue of Singapore Airlines Limited, the organization should try to give all the real time information to its partners and consumers as well. At the same time open communication is needed to maintain the status of the organization.
Conclusion
From the above discussion it can be concluded that the due to the implementation of massive and innovative technical approaches Singapore Airlines Limited is able make strong and loyal relationship along with its consumers and collaborative organizations. Apart from this, it also shows different key information such as about the company’s market, competitors, ultimate goal and strategies that are adopted to develop the organizational culture. In addition to this, it also mentioned appropriate incoterms that should be considered for the Airline industry. It also mentioned the transportation goal and need of the organization on the basis of carrier selection criteria and carrier relationship management. In a parallel manner, being a manager of Singapore Airline industry some recommendations is also provided in order to achieve the organizational objective of the company. The current revenue of the company is about $16.103 billion and the operating income coming from the business is about $446.10 billion. The net income of the airline industry is $378.9 Million. The current market revenue of the company is also shown in the assignment. From the overall description it is found that the major focus of the organization is to provide a low cost but quality service services to its consumers in order to hold the static position in the Airlines industry.
References
Baker, D. M. A. (2013). Service quality and customer satisfaction in the airline industry: A comparison between legacy airlines and low-cost airlines. American Journal of Tourism Research, 2(1), 67-77.
Bowen, J. T. (2016). “Now everyone can fly”? Scheduled airline services to secondary cities in Southeast Asia. Journal of Air Transport Management,53, 94-104.
Cabon, P., Deharvengt, S., Grau, J. Y., Maille, N., Berechet, I., & Mollard, R. (2012). Research and guidelines for implementing Fatigue Risk Management Systems for the French regional airlines. Accident Analysis & Prevention, 45, 41-44.
Chen, F. Y. (2013). Managers’ Views on Environmental Management: An Examination of the Taiwanese Airline Industry. Journal of Sustainable Development, 6(1), 65.
Hasan, M. M. (2015). Freight forwarding business of UTi Pership Pvt. Ltd.: focused on only air export.
Heracleous, L., & Wirtz, J. (2012). Strategy and organisation at Singapore Airlines: achieving sustainable advantage through dual strategy. InEnergy, Transport, & the Environment (pp. 479-493). Springer London.
Kamisan, A. P., & King, B. E. (2013). Transactional and transformational leadership: A comparative study of the difference between Tony Fernandes (Airasia) and Idris Jala (Malaysia Airlines) leadership styles from 2005-2009. International Journal of Business and Management,8(24), 107.
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Oum, T. H., & Yu, C. (2012). Winning airlines: Productivity and cost competitiveness of the world’s major airlines. Springer Science & Business Media.
Pearson, J., Pitfield, D., & Ryley, T. (2015). Intangible resources of competitive advantage: Analysis of 49 Asian airlines across three business models. Journal of Air Transport Management, 47, 179-189.
Roy, A. (2015). What determines airline profitability: industry conditions or firm level capabilities?. Academy of Taiwan business management review, 11(2), 17-23.
Sengupta, N., & Sengupta, M. (2014). Singapore Airlines: Gliding with People Excellence.
Singapore Airlines. (2016). Ukessays.co.uk. Retrieved 6 August 2016, from https://www.ukessays.co.uk/essays/business-theory/singapore-airlines.php
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