Supply Chain Management

Supply Chain Management

The APICS (Advancing Productivity, Innovation, and Competitive Success) defines supply chain management as the designing, planning, execution, controlling, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally. Since CitationAir provides services rather than a specific tangible product, the supply chain management piece stems from their relationship to aircraft manufacturer and parent company, Cessna. As a service organization, the definition that best suits our group project when defining SCM is “the management of information, processes, goods and funds from the earliest supplier to the ultimate customer, including disposal.”[1] Supply chain management in the private aviation business centers around having the plane available in the locations and at the time people want to fly.

CitationAir supply chain starts with the manufacturing of the aircraft by the parent company, Cessna. After each aircraft is manufactured, there are a series of tests done to ensure safety and reliability of the aircraft before transportation to CitationAir’s hub. Training is then provided to all operational personnel to ensure the safety of all potential passengers and staff. CitationAir provide their services to the customers through the jet card or jet share program. The Jet card program was develop to give the customers the flexibility to select a pricing option that is right for them based on the number of flight hours they expect to fly for the year.

Supply Chain Diagram:

CitationAir current supply chain allows them to maximize the benefits obtained from Cessna through the various programs mentioned in Section 5 and Section 6. The value derived from being link to an aircraft manufacturer leads to cost savings that provide competitive advantages – allowing...