The effectiveness of procurement under a network arrangement

Pao Yue-kong Library Electronic Theses Database

The effectiveness of procurement under a network arrangement

 

Author: Wong, Kwai-lin Karina
Title: The effectiveness of procurement under a network arrangement
Year: 2004
Subject: Hong Kong Polytechnic University -- Dissertations
Industrial procurement -- Management
Purchasing -- Management
Consortia
Consumer satisfaction
Department: Graduate School of Business
Dept. of Logistics
Pages: ii, 44 leaves ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1793845
URI: http://theses.lib.polyu.edu.hk/handle/200/1558
Abstract: Airline alliances have been in operation for more than six years. At the beginning of the alliance, the airlines were focussed on rolling out products for the benefit of the customers. They were more revenue-up driven; now they are spending a lot of time redirecting their internal resources towards exploiting cost-down initiatives. The Global Alliance moved quickly from being marketing-led to targeting cost reductions. Their focus became what they can do to help their members conserve cash and take costs out of their infrastructure. Airline alliances are industry's response to consolidation. These are not common ownership alliances, they are basically commercial alliances. Exchange of non-competitive information was vital because creative ideas from one airline could be adopted by its partners. Alliances airlines have pluced most of the "low hanging fruit", joint purchase of items like economy class blankets, food trays, carpets and inflight entertainment equipment, and now they are working an joint purchasing of items such as fuel, spare parts, inflight food and ground support services; also use of common facilities like hangers and computer centres. However, how each alliance partner benefits financially from membership is difficult to assess.

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