Realisation of savings and increasing upside sales potential
What they asked
Our client is a low-cost airline. The airline sells food, beverages and non-food products on board during its flights. They considered lightweight in-flight trolleys which prompted a full and end-to-end review of the buy-on-board supply and activity chain. The then existent practice was to make maximum use of the galley space without having a clear view of the service levels and cost achieved.
What we did
We set up a database with an entire year’s worth of sales data which enabled running different loading scenarios and capture the cost and service levels of each scenario. We modelled scenarios to help facilitate decisions when selecting the type of trolley and cooling devices, the frequency of loading, the quantities to load and the stations where to load. For each loading scenario, we showed the effects on service, lost sales, cost and operational impact. We also developed a future proposition to capture upside sales potential created by the rationalisation of the logistics, load, and equipment.
What we accomplished
The measures taken led to a decision on a cooling device, the type of trolleys, the loading quantities and frequency and the loading stations. Significant annual savings on fuel and devices and less waste. Upside potential was enabled as optimal loading scenarios freed up galley space. This free space could then be used for promotions, new products and additional products on heavy usage flights.