Risk And Procurement Management Assignment Sample
Introduction
The report is going to focus on procurement management of British Airways. Procurement and risk management becomes very crucial in achieving success in business. Procurement management represents the source to service system including solicitation, supply, productivity, service delivery, and keeping all the records. Therefore, the procurement process includes several risks that are going to be addressed in this study. The study is going to evaluate the procurement process of British airlines with relevant risk management strategies in question 1. Question to is going to compare and contrast between two different types of contractors and the form of collaboration used by British airways. In addition, question 3 is going to analyse four different types of contract breaches that can occur with their potential resolution. Furthermore, a conclusive statement is going to be added in this report on the procurement and risk management process of British airways.
Chosen project
The chosen project is related to procurement management of British Airways. The project has evaluated the context of source to service procurement procedure of British Airways. It also focuses on the complexities and challenges faced by the organization in procurement management. As per the view of Galeazzo et al. (2021), British Airways is one of the largest airways according to fleet size and numbers of passengers. Until 2008 it was the largest airway organization in the UK, However easyJet overtook the position in 2008 with 44.5 million passengers in that year. British Airways holds “type A operating license” certified by UK CAA (“United Kingdom Civil Aviation Authority ”). The main base of British Airways present at Heathrow airport and Gatwick airport. However, the organization also has air bases at London city airport and Manchester airport. British Airways conducts its airway service through its 254 airplanes in 183 different destinations all over the world.
International Airlines group (IAG) is the parent company of British Airways with its subsidiary BA CityFlyer. As opined by Hu and Su (2018), the organization has its own airspace hub where the body and parts of airplanes are manufactured. The organization is currently providing airway service with its 254 flights to different corners of the globe. However, employee management, time scheduling and stakeholders management have become key issues for British Airways. In addition, maintaining quality, and punctuality are two major challenges that have to be controlled by the organization. Supply of crude oil, partnership with the suppliers and stakeholders also come under procurement management. Moreover, customer management is one of the crucial aspects of the procurement process of British Airways. The report is going to shed light on these factors to evaluate the procurement process.
QUESTION 1
The procurement process of British Airways includes the whole process of source to service providing. It includes the management of suppliers, subordinates, and stakeholders. Along with this, the solicitation process also plays an important role in airways business. As per the studies of Kakwezi and Nyeko (2019), the organization conducts a solicitation process to mmege up with subsidiaries, suppliers, and distributors to make convenient business deals. It has been identified that the organization made sustainable deals with suppliers and distributors that helps in profitable purchase and sales. Three most important aspects of procurement process of British airways are going to be illustrated in the below section:
Solicitation process: Solicitation process refers to the collaboration with subsidiaries in order to expand business all over the world. As per the consideration of Okeyo and Kabare (2019), the organization runs business under the parent company International airlines group (IAG). On the other hand, BA CityFlyer is the subsidiary of the British airways that conducts domestic airline service from the air base situated at London city airport. The organization manufactures both narrow and wide body aircraft. In addition, it also manufactures Boeing wide-body aircraft including 777 and 787. The manufacturing units are under the direct control of the company in order to control the work progress and quality of the aircraft. The organization collaborates with all the material suppliers for a long term agreement to improve procurement process.
Employee management: Employee management comes under the procurement process of the British airline. In service based industry employee management becomes very crucial in order to maintain the service quality and time schedule. Therefore, the organization focuses on organizational behaviour and discipline in order to provide the employees a working friendly environment (Suominen, 2018). Along with this, British Airways prioritizes customer satisfaction over all aspects in order to expand business. Employees of the company are requested to provide their nest to satisfy the customers with quality and punctuality in travels. On the contrary, the organization provides adequate flexibility and payment satisfaction to its employees.
Purchasing crude oil: Crude oil purchasing is one of the important deals that British airlines have to manage conveniently. It has been observed that British Airways dealt with Phillips 66 limited in order to purchase jet fuel with multi-years supply agreement. As per the suggestion of Yang and Yang (2021), both the organizations focus on green practice with sustainable level of profitability with good collaboration. On the other hand, British Airways purchases sustainable aviation fuel (SAF) directly from the Phillips 66 Humber refinery without any involvement of third parties. It helps in making profitable deals related to purchasing jet fuel.
British Airways used to manage risks by effective risk assessment procedures. The procurement process is related to the overall business management system including aircraft manufacturing, crude oil purchasing, making air bases, making international permits, time scheduling and maintaining customer service quality (Yu et al. 2021). The organization uses Scientific RAID analysis in order to analyse customer service, employee performance, stakeholder management and employee management as well.
The procurement process of the British Airlines has been described by analysing manufacturing, solicitation, purchasing deals, stakeholders and employee management. In addition, the aspects of customer satisfaction have been evaluated here. The aspect of sales and marketing management is also included in the procurement process of British airlines (Badillo, 2018). The organization focuses on marketing strategy in order to promote organizational performance.
QUESTION 2
2.1. Comparison of two different types of contractor
The leading aviation industry British airways are operating its business through engaging a number of contractors and suppliers for different organizational functions. The contractors of cargo supply chain and dress materials assist organizations from different sides and play a critical role in risk management (Ciampa and Nagel, 2020). The cargo supply chain focuses on “assembling the shipment”, “making RFT (Read for transport)” and ordering transport. In this aviation company, cargo supply chain contractors provide system-supported service for managing complex supply chain networks and fostering effective transport management. It deals with effective planning and control of the movement and assists in the storage of services and goods from different origins to the final destination (Liu et al. 2020). Cargo supplies include air products manufacturers, airport ground handling companies, and other delivery organizations.
This cargo chain assists in controlling temperature, hazardous materials, heavyweights, live animals, human organs, and dangerous goods. In the words of Belhadi et al. (2021), this functioning and controlling assist in identifying different risks in the airline industry for smooth and safe transportation. Different in the aviation industry, for instance, cargo supply chain and dress materials significantly identify different risks. The contractors of dress material and the cargo supply play different roles in identifying risks and improving organizational functions. Identification of risk is one of the significant functions of this aviation industry for smooth functioning and to make the customer safe during travel. Dress material contractors manage to dress and enable different principles within the organization that increase safety and secure operations (Ciampa and Nagel, 2020). Both these contractors play a crucial role in this industry and make transportation safe for increasing customer satisfaction.
The Cargo supply chain takes a dominant position in identifying different risks while the dress material contractors assist in managing different principles within the organization. British airways are highly concerned about these two contractors for preventing different risks and making the customer service safe and secure. As opined by Reypens et al. (2021), in risk management, both of these contractors are significant and they assist the organization in improving customer satisfaction. The aviation industry creates a strong relationship with these two contractors for increasing operations and creates a strong brand in this challenging market. The function of these two contractors enabled the organization to increase its revenue by maximizing customer satisfaction.
2.2. Collaboration of work package
The collaboration assists organizations in leveraging different internal and external connections to generate ideas, achieve organizational goals, and find different solutions. The effective collaboration of cargo supplies and dress material management assists the aviation brand from different perspectives (Dube et al. 2021). This collaborative work of British airways is significant for fostering different performances during different activities and making the passenger’s journey safe. The organization is always concerned about this collaboration for increasing productivity and preventing organizational risks from a different perspective. Collaboration package with cargo supply chain and dress materials deals with managing employees and identifying issues before the journey.
Both of these contractors play a vital role in the success of the aviation industry and make the journey safe, secure, and joyful. British Airways sets its vision for providing utmost satisfaction and safety to its customers for increasing brand awareness and improving revenue from these challenging markets. According to the view of Reypens et al. (2021), collaborative work with different partners assist this company to reach organizational goals for further success and improvement. The organization further implements different ideas and concepts for customer improvement and provides them satisfactory service. This collaboration increases efficiency and effectiveness in transport services and this organization is able to deliver seamless connectivity. These factors generate economic growth and facilitate international tourism through a rapid worldwide transportation network.
This collaborative work of dress material contracts and cargo supply chain serves effectiveness in organizational performances and effectively identifies different risks. As opined by Adekitan (2020), in managing different customers, identifying risks, and organizing employee performance, these contracts play a significant role. British Airways is popular for its collaborative functions through engaging different contractors and it significantly improves organizational productivity and performance. Cargo control handles different risks before transportation and manages customer service effectively for enhancing their satisfaction (Belhadi et al. 2021). Therefore, it is imperative to note that this collaborative approach of these contractors is beneficial and significant for long-term organizational success and improvement.
QUESTION 3
3.1. Identification and analysis of contract breaches
Contract breach is commonly observed in the aviation industry and the organizations are closely involved with different partners and contractors. Similarly, British airways are strongly engaged with food and supplier management, risk management, cargo control, and dress material management. As stated by Rezaei Somarin et al. (2018), the effective collaboration and partnership of this management assist this company to improve different functions, identifying risks and making the customer satisfied. This collaboration is the fundamental part of the increased customer and employee engagement of British airways. Sometimes, contract breaches among different partners are observed that jeopardize different organizational performances and make the customer affected. Contract breach is a fundamental issue of the organization that critically affects economic performance and customer engagement (Ani and Nwakoby, 2021). It further leads to terrorism issues, lack of infrastructure in airlines, lack of fuel, and passenger discomfort.
Data leakage is another common practice that is observed due to contract branches with several partners and affects the performance of the aviation industry. The collaborative model states the world communication and coordination of different activities through using technology. According to the view of Jiang (2019), this model is widely used for its several advantages and benefits for different collaborative approaches, and partnerships’ activities. This model is represented for interactions and sharing information for promoting different activities by more groups. This model is implemented by this leading organization British Airways for improving collaborative functions by different contractors. Collaborative models assist in supervising together work to ensure the success of organizations through taking responsibilities (Kaasbøll et al. 2020). It further identifies the crucial impact of contract breaches that devastatingly affect organizations and their economic performance.
Figure 1: Collaborative model
(Source: Kaasbøll et al. 2020)
Collaborative models are evolving through port pictures for instance “performance, strategy, arrangements and culture” for understanding and demonstrating collaborative works. Implementation of this model assists in establishing a shared goal through grounding the rules for participation (Jiang, 2019). It further executes a process for improving teamwork and British airways can improve its problem-solving areas. Contract breaches and their potential effects are critically understood by this model and increase organizational effectiveness and performance. As opined by Oraee et al. (2019), the application of this model encourages problem supervising, increased productivity rate, and allows employees to learn from each other. Therefore, these contract breaches with food partners and cargo supply devastatingly affect the performances and British airways and reduce its employee engagement.
Potential resolution
This leading organization of the aviation industry, British airways is always concerned with finding potential resolutions for preventing contract breaches. Strong agreement with different partners and identifying the loyal partner are the important strategies to solve this contract breach. According to the view of Ani and Nwakoby (2021), it is considered as one of the significant issues in this industry and it hampers organizational procedures and creates a negative impact on its financial performance. In this case, identifying loyal cargo partners, food partners and dress-materials contractors are important to manage functions and make the organizational operations in an organized way. The application of this collaborative model is significant to promote collaborative operations for improving organizational activities (Rezaei Somarin et al. 2018). Human Resource Management (HRM) plays a significant role in identifying different contractors for promoting collaborative work and making the organisation reach its objectives,
Potential resolution of these contract breaches is important to improve productivity, organizational functions, and other processes. As cited by Adekitan (2020), a strong agreement with different contracts is a significant objective for preventing other challenges and creating a strong bond with partners. These strategies are important for delivering value through engaging partners and boosting organizational performances. An award of compensatory damage is another popular remedy that significantly helps British airways to prevent contract branches. The organization can focus on sharing a strong bond or agreement to get effective results and solve these issues for improving organizational performance (Liu et al. 2020). These implementations of these strategies are important to present contract breaches and foster effective organizational performance to maximize customer satisfaction.
Conclusion
Based on the above discussion, it can be concluded that the leading organization of the aviation industry, British Airways, operates its business by engaging in different contracts. In managing different organizational risks, cargo supply chain and dress-material contractors play a significant role. The partnership of these contractors assists the organization to improve its service and manage different organizational performances to increase customer satisfaction. The collaborative approach is significant for organizational success and it potentially identifies different risks before the journey. The collaborative function is a significant step of this company to increase productivity and make the customer journey safe and secure. The study has discussed the collaborative work of different contractors and focused on the Collaboration model and its impact on organizational performance. Potential solutions to contract breaches are discussed to get effective results and make the long-term success of organization.
Reference
Badillo, T., 2018. Procurement Total Cost Analysis: A Supply Chain Strategy for the Aviation Industry (Doctoral dissertation, Walden University).
Belhadi, A., Kamble, S., Jabbour, C.J.C., Gunasekaran, A., Ndubisi, N.O. and Venkatesh, M., 2021. Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries. Technological Forecasting and Social Change, 163, p.120447.
Ciampa, P.D. and Nagel, B., 2020. AGILE Paradigm: the next generation collaborative MDO for the development of aeronautical systems. Progress in Aerospace Sciences, 119, p.100643.
Dube, K., Nhamo, G. and Chikodzi, D., 2021. COVID-19 pandemic and prospects for recovery of the global aviation industry. Journal of Air Transport Management, 92, p.102022.
Galeazzo, A., Ortiz-de-Mandojana, N. and Delgado-Ceballos, J., 2021. Green procurement and financial performance in the tourism industry: the moderating role of tourists’ green purchasing behaviour. Current Issues in Tourism, 24(5), pp.700-716.
Hu, X. and Su, P., 2018. The newsvendor’s joint procurement and pricing problem under price-sensitive stochastic demand and purchase price uncertainty. Omega, 79, pp.81-90.
Jiang, W., 2019. An intelligent supply chain information collaboration model based on the Internet of Things and big data. IEEE Access, 7, pp.58324-58335.
Kaasbøll, J., Ådnanes, M., Paulsen, V. and Melby, L., 2020. Interagency collaboration for early identification and follow-up of mental health problems in residential youth care: evaluation of a collaboration model. Nordic Social Work Research, pp.1-16.
Kakwezi, P. and Nyeko, S., 2019. Procurement processes and performance: Efficiency and effectiveness of the procurement function. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 3(1).
Liu, Y., Lee, J.M. and Lee, C., 2020. The challenges and opportunities of a global health crisis: the management and business implications of COVID-19 from an Asian perspective. Asian Business & Management, p.1.
Okeyo, G. and Kabare, K., 2019. Factors that influence procurement processes in the air travel industry: A case study of Kenya Airways. International Academic Journal of Procurement and Supply Chain Management, 3(1), pp.106-124.
Oraee, M., Hosseini, M.R., Edwards, D.J., Li, H., Papadonikolaki, E. and Cao, D., 2019. Collaboration barriers in BIM-based construction networks: A conceptual model. International Journal of Project Management, 37(6), pp.839-854.
Reypens, C., Lievens, A. and Blazevic, V., 2021. Hybrid Orchestration in Multi-stakeholder Innovation Networks: Practices of mobilizing multiple, diverse stakeholders across organizational boundaries. Organization Studies, 42(1), pp.61-83.
Rezaei Somarin, A., Asian, S., Jolai, F. and Chen, S., 2018. Flexibility in service parts supply chain: a study on emergency resupply in aviation MRO. International Journal of Production Research, 56(10), pp.3547-3562.
Suominen, M., 2018. Innovative approaches to transportation service procurement: aiming for extensive buyer-supplier collaboration.
Wijerathna, S.K., 2019. Affect of the public procurement procedure on the procurement efficiency of Airport and Aviation Services (Sri Lanka) Ltd (Doctoral dissertation).
Yang, B. and Yang, S., 2021. Enterprise Intelligent Procurement Management Model Exploration.
Yu, K.Y., Choi, H.S. and Jeong, D.Y., 2021. A Scheme of Data-driven Procurement and Inventory Management through Synchronizing Production Planning in Aircraft Manufacturing Industry. The Journal of Information Systems, 30(1), pp.151-177.
………………………………………………………………………………………………………………………..
Know more about Unique Submission’s other writing services:
