Emirates Airlines: Inventory Management for Competitive Advantage

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Table of Contents

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.

Long-term service

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.

Effective inventory management

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.

Formulation and implementation of appropriate strategies

Appropriate strategies

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.

Leverages ICT solutions