The changes in the departments will bring about a positive impact and this will help the company in succeeding in the airline industry. By changing the supply routines and the supplier, material management will become easier. Enterprise Resource Planning is one among the best ways to integrate the departments in the company. This will help in decision making and further improvement of the company.
Toon Air has been operating the airlines for many years. They have been successful in this field with no specific competitors. The recent development in the airline industry has led to a situation where many other airlines operate at a lower cost. This has affected the development and growth of Toon air. This has proved to be a great disadvantage. To overcome this situation Toon Air has to adopt new strategies and plan accordingly so that the current situation can be improved. This will enable the employees and the customers to have a problem free environment.
The spare parts are procured regularly form some of the manufacturers. Any purchased material has to be stored in a warehouse and it has to be maintained properly, failing which may leads to unforeseen circumstances. These spares have been stored at a warehouse which is located at a distance of 30 miles from the airport. Purchasing is the major event in the management of supply of spares. The main problem is the delay in the supply of parts. Whenever a part is required they must be readily available to the users and engineers. There should not be any time delay as this in turn affects the flight timings. This will result in an unexpected loss to the company since the aircrafts are kept at the airport. They manage the situation temporarily by flying the substitute planes. This is not a permanent solution. This may prove to be a problem when several planes are idle at the airport. The spares are supplied to the maintenance engineers as and when needed. As the people in the purchase department do not have proper authority to decide and procure spares, this delays the process of purchase and supply of spares to the engineers.
Toon Air purchases the spares from a reliable supplier. The cost of the spares is costly when compared to the other suppliers. They must select a different supplier who can supply the parts at a much lesser rate. This will be of more help to the company as this amount can be used for some other purpose. If the supplier is changed they can procure the spares immediately. (Hitomi, 1996).They must select the supplier who can deliver the spares immediately after the order is placed. This will reduce the delay in the supply of the parts. This in turn will reduce the idle time of the aircrafts. Since the spares
are delivered immediately, the substitute planes can be used for any emergency situation alone. There has been a practice of engineers getting the spares directly from the suppliers. They make an order to the supplier and they get the spares delivered as and when they require. This may be of help only in certain cases. To avoid such a situation, the company must change to a different supplier so that the spares are procured whenever needed.
The company must appoint some responsible person who can handle the purchase department in an efficient way. This will ensure that the department does not