Understanding the business strategies of a lcc or low cost carrier

In the analysis, four U. Las Vegas at No.

Understanding the business strategies of a lcc or low cost carrier

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Shawn has spent nearly two decades leading, managing and motivating teams across a vast array of industries and sectors. Shawn is recognized as a thought leader in the area of operational excellence and his views are frequently published in industry publications including the Globe and Mail, CFO Magazine, Enterprise Apps today, purchasing B2B and many others.

Shawn has also been a visiting faculty member at the Humber College Institute of Technology and Advanced Learning for the past two years. My top logistics strategy tip is… Leverage your predicted volumes to reduce price. This is when predicted volumes become essential. What are your predicted logistics volumes in LTL or courier in your first year?

Positioning this correctly can yield significant discounts in freight costs, the outcome of which help improve bottom line cash and competitive advantage. I helped one very small ceramic tile distributor negotiate their courier rates.

We ended up using the top ranked international courier with a significant discount. My client was pleased, but was never able to validate the discount rate until one day their supplier a larger national manufacturer of tile suggested they ship using their own account with the same courier.

In logistics network strategy, identifying partners is all about leverage, real or predicted. Keith Biondo As the publisher of Inbound Logistics Magazine — a multi-media publication serving the informational needs of business logistics and supply chain managers globally since — Keith Biondo is considered a supply chain visionary.

Early in his career, Biondo recognized the importance of helping U.

Understanding the business strategies of a lcc or low cost carrier

He also championed the concept of applying logistics technology to all aspects of supply chain management, from the largest ERP systems to the smallest SaaS solutions. Biondo currently serves as a board advisor to the American Society of Transportation and Logistics.

When it comes to an effective logistics strategy… My one tip is to start practicing demand-driven logistics if you have not already done so.

The importance of better matching demand for your products to your supply goes far beyond reducing your transport spend. When a company begins practicing inbound logistics or demand-driven logistics, transportation costs are reduced but the savings of replacing inventory with information, and providing better customer service to your customers, is even more important.

Beyond that important result, aligning your business to practice demand-driven logistics moves logistics management out of the functional silo and provides strategic benefits to the entire enterprise. As the head of research at Supply Chain Visions, Steve is constantly monitoring the pulse of the supply chain industry for leading edge trends and best practices that Supply Chain Visions can bring to their clients.

The most important tip I can share with business professionals looking to create an effective logistics strategy… Comes from many years working as a consultant to companies in the warehousing and supply chain areas. It is a rather simple, and extremely effective approach that is way too frequently overlooked, misunderstood, or simply not well executed.

Note here that it does not simply include Sales and Operations, but must include all parties who impact, or are impacted by, the regular activities of the business.

The meeting should be held as frequently as practical, and the team should have a set of tools, KPIs and reports, to assist in regular checkups and notifications. Meetings should be focused and short, they should be about cooperation and strictly avoid confrontation.

It should be more about planning for what is coming in the short and long term, and how the team will address it. There must be commitment by all parties to move past the functional silos that continue to haunt companies. For example; A DC achieving a high fill rate for customer orders may not be good for the business if doing so comes at a high cost to the rest of the business.

Rick Blasgen Rick D. He began his career with Nabisco, where he held various logistics positions of increasing responsibility in inventory management, order processing, and transportation and distribution center operations management.

He became vice president, supply chain, at Nabisco inthen vice president supply chain for Kraft in From untilhe served as senior vice president integrated logistics at ConAgra Foods. He earned his degree in business administration from Governors State University.

He has published widely in the area of Supply Chain Management and is Editorial Advisor to a number of top journals in this area. When it comes to creating an effective logistics management strategy… The answer to your question is contained in my 60 seconds on Supply Chain Strategy video on YouTube.

Some notes from the 60 second video: Logistics and supply chain strategy can be summarized as the operational execution of the business mission. So firstly understand the business mission, reflect on the Corporate strategy of the organization and plan accordingly.

A focused competitive strategy is required so liaise and discuss with the marketing and sales functions of your business. So you need to segment your customers and products so that you can develop individual supply chains to create maximum value at the lowest possible cost for each of these groups.

Thirdly, now for a supply chain strategy to really work, four areas need to be designed. Your supply chain processes, the supply chain infrastructure including where you locate facilities and also what equipment is used, your supply chain information systems, and finally the supply chain organization.

This is how you organize your people. So in summary, start with the corporate strategy, identify how you compete in various markets and understand the competitive strategy, develop the supply chain strategy to serve these markets by tailoring your Supply Chain Processes, infrastructure, information systems and organization and people.Industry news Powered by.

Objectives of Air Arabia:

Air Astana fights back with low-cost carrier launch. Posted 9 November pm. Kazakhstan is set for its first low-cost airline as part of flag carrier Air Astana’s response to fierce competition and rising operating cos. Jun 29,  · This in turn helps to create synergy and capability to deliver the full spectrum of low cost carrier business.

Air Asia was the first airline in Southeast Asia to utilize e ticketing so that traditional travel agents can be bypassed. By Virgin Blue had positioned itself as an economy carrier or as the airline described itself a “new world airline,” to differentiate the airline from its original low-cost/low-fare position that was by then occupied by Jetstar and Tiger.

This paper examines the relationship between low cost carriers (LCCs) and airports by undertaking a critical analysis of the academic research in this area. Southwest Airlines’ crazy recipe for business and personal success” argue that “no carrier knows its niche as well as Southwest”.

Similarly, Ryanair started its operations as a low-cost carrier by flying only to secondary airports in Europe. The best idea I can share with business professionals for better understanding how logistics strategies work is Logistics strategy is the science of evaluating the most cost effective methodology of distributing goods to market while achieving service level objectives.

LCC: Business, Corporate and Global Strategy – Extramodal