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Southwest Airlines
Organizational Profile
Southwest Airlines is a discount airline in the United States, and is one of the industry leaders as the #3 in market share (Portillo, 2012). The company has a large network of flights around the U.S. Recently, it is has turned its back on the discount carrier model and begun to price more in line with industry norms (Martin, 2013). The company faces the same supply chain issues as any other airline. As a service entity, staffing is a major input. The company's biggest commodity worry is fuel, which is a major cost driver. There have also been recent issues with respect to parts and maintenance, which are also elements of the company's supply chain, especially with respect to the procurement of good parts (Ferrari, 2009).
Business Strategy and Structure
As noted, Southwest operates as a discount carrier in the airline business. It has recently shifted away from this strategy, focusing more on a more conventional business model. Procurement has not changed much with this shift. The company's structure is broken down by task. The tasks include supply chain management, maintenance and human resources, all of which are part of the supply chain for critical inputs. There are other functional departments as well, but finance and marketing for example have little to do with the company's supply chain, other than the impact that Finance has on fuel price hedging.
Current Supply Chain Performance
Southwest...
The biggest issue is with the price of fuel. Fuel hedging is important aspect of the business, as it helps to support the strategy by leveling out the cost of this key input. Sometimes, the company can make a profit on its hedges. Hedging is, however, a financial task and one that while critical to the supply chain is not part of the normal procurement process (Velotta, 2012). Likewise, another key input is human resources, but that department handles the issue independent of normal procurement channels, predominantly by building the employer brand of the company.
Southwest bears responsibility for procurement of in-flight items like food, but also of the tools and supplies needed for maintenance. Ferrari (2009) notes that Southwest has had difficulties a few years ago with respect to ensuring proper supply chain management. The Federal Aviation Authority (FAA) sued Southwest for potentially using unauthorized parts, which indicates a serious breakdown in the supply chain. This issue was serious enough to ground 10% of the company's fleet. Forced to make changes to its supply chain system, Southwest now finds itself having a more difficult time achieving cost competitiveness.
Patterns of Change in the Supply Chain
The observable pattern in the supply chain for Southwest is that it has been forced to use authorized suppliers whose parts meet the FAA's specs. The company was breaking the law in not doing…
Works Cited:
Ferrari, B. (2009). Southwest Airlines again tests maintenance standards. Supply Chain Matters. Retrieved April 21, 2013 from http://www.theferrarigroup.com/supply-chain-matters/tag/southwest-airlines/
Portillo, E. (2012). Southwest Airlines to begin CLT service in 2013. Charlotte Observer Retrieved April 21, 2013 from http://www.charlotteobserver.com/2012/10/23/3614327/southwest-airlines-to-begin-clt.html
Martin, H. (2013).Is Southwest Airlines losing the luv? Los Angeles Times. Retrieved April 21, 2013 from http://articles.latimes.com/2013/feb/09/business/la-fi-southwest-airlines-20130210
Velotta, R. (2010). Fuel hedging leads Southwest Airlines to profitable 1st quarter. Las Vegas Sun. Retrieved April 21, 2013 from http://www.lasvegassun.com/news/2012/apr/19/fuel-hedging-leads-southwest-airlines-profitable-1/
SWOT Analysis: Southwest Airlines Southwest Airlines, having a well-established business incarnation throughout the United States is among the most competitive passenger airlines in terms of pricing strategies and customer services. The company has always been pursuing a growth strategy for its business operations in the local market. Currently, it has customers from all over the United States that consider it a low cost quality airline service provider. The company operates with
SOUTHWEST Company supply chain Southwest Company supply chain: How to cut costs and keep quality high? Southwest Airlines has proven to be one of the most forward-thinking companies in the airline industry, with its quirky style, customer-friendly focus and the clever ways it finds to slash the costs of flights and pass savings on to customers (Carbonara 1996). Given its low-cost orientation, having a lean supply chain is extremely important for the business
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Southwest AirlinesTable of ContentsAbstract 1Introduction 1Organizational Setting 2Integration of Chapter Concepts to the Organizational Setting 3Controlling Service Quality 3Biblical Justification 3Customer Value 3Biblical Justification 4Lean Management 4Biblical Justification 4Supplier Management 5Biblical Justification 5Customer Relationship Management (CRM) 5Biblical Justification 6Balanced Scorecard 6Biblical Justification 6Strategy Map 6Biblical Justification 7Process Control 7Biblical Justification 7Conclusion 7References 8Appendices 9Strategic Analysis Data 9Environmental Scan 9SWOT Analysis 9Strategic Issues 9Operating Plan 9Communication of Plan 10AbstractThis paper provides
Business An Examination of Southwest Airlines Globalization and Technology Improving Returns Application of the I/O Model Application of the RBV Model Mission and Vision Statement Stakeholder Influences Southwest Airlines has been one of the aviation industry's success stories; founded in 1967 the airline pioneered the low cost carrier model, and grew organically leveraging a first mover advantage (Morrison, 2001). The airline now operates approximately 3,600 flights every day, employees 45,009 staff and with the acquisition of AirTran in