Severity of Supply Chain Disruptions †Free Samples to Students

Question: Discuss about the Severity of Supply Chain Disruptions. Answer: Introduction: Virgin Airlines Australia is considered to be the second largest airline's company, just next to Qantas. This famous airline is mainly based in Brisbane and was established in 1999. This brand is renowned mostly for the fleet size which is recorded to be 115. Destination location of this brand is known to be 52. Virgin Australia Holdings is the parent group of Virgin Airlines Australia. This organization has gained significant fame and reputation by achieving good product value and customer response within a short time. The company is now able to earn revenue of AUD 4.7 billion in a year (Virginaustralia.com, 2017). This figure is quite impressive for attaining success in the industry. This organization has enough potential of availing AUD 49 million of operating income in a year which is threatening enough for the existing brands. The main strength of the company lies in its efficiency of handling operating varieties with special care by managing organizational benefit and public s atisfaction in a parallel manner. However, the rates of packages and journey expanses are merely high. Thus, it fails somehow in attaining proper customer response. The total asset and equity share of the company are impressive enough in making passengers secured of their safety and care related facts. Thus, the company has enough competitive advantage for attaining future sustainability. A literature review describing how such supply chain and logistics issues are addressed in other similar case studies found in literature: Author has opined that the global economy is deeply influenced by the industrial impact. Thus, airlines face severe constraint in upgrading and continuing their services(Croom, Romano Giannakis 2011). It impacts in the profit margin and operational activities of the company. The crisis may be economic, as the financial crisis of 2007 has caused in decline of profit and challenged the activities as well as desired business structure of the company. Author remarked that the efficiency of Virgin Australia has been interrupted by the economic degradation and the inventory operations were also disturbed by raising the cost, reduced lead time, switching cost (Craighead et al. 2017). The airline's companies mainly face competitive issues in fixing of prices and offered services. As pointed by researchers, such brands confront severe issues and constraints by the raising operational costs that interrupt the growth and budget specific up gradation of the company (Van Wassenhove Pedraza Mart inez 2012). These issues are the high concern for the airline companies as the consolidations and terms are strictly governed by the external factors of it. Author mentioned in his comment that, buffer stock can also create crucial issues in the smooth journey of airlines companies like Virgin Australia(Tang 2016). The systems and regulations of airlines are strictly governed by distinctive policies and system chains (Lin 2013). There are several types and terms and conditions with respect to the employee management and customer security system. The customer satisfaction policies are designed in segmentations so that the right of every individual can be protected. Therefore, the business and procedure of airlines need to follow strategic sourcing in relation to the development of this industry. The Aeroxchange system is also sub-divisional under different segmentations. As remarked by author, the development and future of the industry are keenly impacted by these above-stated issues and thus, these require deep concern(Christopher Holweg 2011). Research methodology you would adopt and identify the type of tools; methods and data collection techniques that would be used to address the supply chain and logistic issues of the organizations: The logistic issues and the supply chain in regard to Virgin Australia needs to undergo a thorough research so that the problems can be solved permanently. For that purpose, the collection of data is immensely required for identification of related factors like trend and demand of customers, their personal choice, the contemporary trend of the market, market situation and specification as well. Therefore, a distinctive way of collecting data needs to be selected. Data collection can be of two types: primary data collection and secondary data collection. To resolve issues of supply chain and logistic, the secondary source of data is mostly effective. This kind of data will be helpful providing real data and reaction of people (Christopher Holweg 2011). This will help generate actual feedback and condition of the present scenario of a market. Visiting websites of helpful companies may be significant in generating valid data. Therefore, secondary data collection method for the research is selected here. Interviewing the employees, crews and managers of the company may also be a helpful source in this case. Gathering information on the repeatedly arising problems and issues and the source of those constraints will help identify the way of the solution. Therefore, non-verbal communication that is primary communication through e-mails and phones, then verbal communications for interviewing the managers and investors will be applied. For the entire purpose, 25 respondents including 15 employees, 5 managers, and 5 investors have been targeted to proceed through the process. Works Cited Christopher, M Holweg, M, 2011, 'Supply Chain 2.0: managing supply chains in the era of turbulence', International Journal of Physical Distribution Logistics Management, vol 41, no. 1, pp. 63-82. Craighead, CW, Blackhurst, J, Rungtusanatham, MJ Handfield, RB 2017, 'The severity of supply chain disruptions: design characteristics and mitigation capabilities.', Decision Sciences, vol 38, no. 1, pp. 131-156. Croom, S, Romano, P Giannakis, M, 2011, 'Supply chain management: an analytical framework for critical literature review', European journal of purchasing supply management, vol 6, no. 1, pp. 67-83. Lin, LC, 2013, 'An integrated framework for the development of radio frequency identification technology in the logistics and supply chain management', Computers Industrial Engineering, vol 57, no. 3, pp. 832-842. Tang, CS, 2016, 'Robust strategies for mitigating supply chain disruptions', International Journal of Logistics: Research and Applications, vol 9, no. 1, pp. 33-45. Van Wassenhove, LN Pedraza Martinez, AJ, 2012, 'Using OR to adapt supply chain management best practices to humanitarian logistics ', International Transactions in Operational Research, vol 19, no. 1-2, pp. 307-322. Virginaustralia.com, 2017, VIRGINAUSTRALIA, viewed 15 Augut 2017, https://www.virginaustralia.com/ae/en/_cookiesAcceptance/.