For every company or business to run smoothly, there should be good interaction and communication between the service providers. The supply chain concepts deal with the networking between the industry and the service providers in the acquisition of raw materials to the provision of finished product to the customers(Khan, 2014). The logistics performance priorities are the goals that should be met so that the supply chain can run smoothly (Gamraoyi, 2016). Some of these goals include; improved customer service, better relationships, more sales, and efficiency. In this connection, this paperinvestigates and discusses two companies in terms of logistics and supply chain management.
The first company is Flyadeal which is a Saudi Arabia airline company. Being a newly established airline company in the Middle East, IT has come up with the low-cost transport strategy which has made transportation very efficient for the customers (Khan, 2014). It has also introduced regular flight services in the region which has formed the customer schedule flexible(Khan, 2014). These unique strategies have made it hard for other companies to copy and this has turned down the possible competition.
The second company is Al Baik which is a fast foods restaurant in Saudi Arabia. Al Baik also has a great logistics and supply chain management strategy which has made it very popular in the world right now. With only the art of providing fried chicken, the company has managed to open many outlets across the globe (Khan, 2014). This has been made possible by their ability to encrypt their mode of preparing the meal. They also have hidden outlets which also have added up to the encryption of their activities(Khan, 2014). Al Baik also has registered its name in many foreign countries to avoid the misuse of their brand.
Basing on the background information of these companies, Flyadeal was established in 2016 and officially began operation in 2017. It is located in King Abdulaziz International Airport in Saudi Arabia. As said earlier, it is a low-cost flight company which means it focuses on delivering value for money to cost-conscious customers(Khan, 2014). This company has specialized in domestic routes which have less flight traffic. This implies that they eye more flights from point to point at a lower budget than other commercial flights which is a good deal for the local customers(Khan, 2014). Flyadeal has also introduced other exciting deals for the customers such as the permission to choose a seat and extra carry-on luggage.
Al Baik was established in 1974 in Jeddah, Saudi Arabia. It has more than forty outlets in Jeddah today. It is regarded as the most significant world’s largest fast-food restaurant which began as a local fried chicken outlet(Gamraoyi, 2016). It has registered its name in eighty foreign countries to protect its brand(Khan, 2014). Since its foundation, the Al Baik Company has increased its menu on the fried chicken to more spice up fried chicken.
Application of logistics and Supply Chain Management concepts/tools that can be applied
Even though these companies have been so successful in their operations, there are still more strategies in logistics and supply chain concepts that they should put in place to increase their efficiency(Gamraoyi, 2016). First, the Al Baik Company is not known to have a permanent building for their job in the locality(Gamraoyi, 2016). Having a warehouse is an essential asset in this kind of business. This is because the more changes they make on their residents become inefficient for their customers and recipe lovers. It can also be hard for people to refer friends from other nationality to this facility(Khan, 2014). Having a permanent warehouse will reduce their customers hassle in getting to the facility. Introduction of a door to door delivery can also help the customer’s budget on transport.
Analysis of expected results and Conclusion
The Flyadeal Company has put in a lot of work in developing the company in terms of supply chain management; hence no much improvement can be made. The only thing that the company should be conscious of is budget and vulnerability to copying(Gamraoyi, 2016). In summary, it is very evident in companies that have selected the supply chain management strategies correctly have been enjoying success in their previous years of operation. Every company should be able to study the logistics and supply chain management and the logistics performance priorities that will enhance these activities to improve their business operations. Besides, they have helped low-income earners to access transportation easily as it is convenient and cheap for almost everyone. For other companies to compete for these two, they need to lower their prices but still minding on the possible outcomes to avoid getting losses at the end of the day.
Gamraoyi, K. (2016). Exploring the development potential of Saudi Arabian Airlines, the national flag carrier of Saudi Arabia: a thesis submitted in partial fulfillment of the requirements for the degree of Master of Aviation at Massey University,(Manawatu), New Zealand (Doctoral dissertation, Massey University).
Khan, M. A. (2014). Restaurant franchising: Concepts, regulations, and practices. Apple Academic Press.
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