Question 1: a) Scheduling Principles at Gate Gourmet
Gate Gourmet uses a master production schedule since many changes are effected into the production and preparation of the food. The MPS takes into account the forecasts, aggregate plan, available capacity and material (Lambert, 2008). MPS is evident in Gate Gourmet as normally the meals for flights are fixed six months prior, but as time goes on changes can be made even six hours before the flight. This allows the actual demand to be met and accurate forecasting achieved (Lambert, 2008).
The importance of supply chain management comes into play where time is a limiting factor and profit making is a necessity (Lambert, 2008). In order for various organizations, such as Gate Gourmet, to remain as a main competitor in the airline-food catering industry, principles of supply chain management assist to solve the problem of time constraints. By increasing the speed of food supply to the airline customers, Gate Gourmet increases their sales. In addition, through applying the principles of supply chain management, Gate Gourmet has been able to ensure faster order processing through using Scala software that has integrated both the flight schedules and bill of materials for the meals.
A number of principles support the internal food preparations at Gate Gourmet. First, Gate Gourmet segments customers based on their needs and preferences. By keeping relevant customer information, Gate Gourmet can be able to prepare customers exact meals, which ensure reduction in food wastage. In addition, they cater for last minute passengers who may require meals as per the airline specifications.
Secondly, Gate Gourmet has customized their supply chain management. By using Scala, Gate Gourmet ensures that all meals and side dishes are delivered at the right time and in the right amounts. Changes that may occur are communicated immediately to the flight’s kitchen area to ensure delays do not occur. Scala software contains preset data for flight schedules and meal specifications days before the flight takes off and incase of any changes updates are made.
Gate Gourmet plans accordingly by observing signals in demand change. While dealing with the airline industry, unexpected changes may occur such as last minute cancellations or increase in passengers. For instance, after September 2001 attacks, many Gate Gourmet customers needed to communicate changes in flight attendance, meal services, supply chain issues and in-flight equipment. Through the e-gate matrix integrated technology, Gate Gourmet staff was able to create necessary changes, which would otherwise have been a hectic task.
Another principle that Gate Gourmet uses in their internal food preparation process is the use of a wide technology strategy. Through the implementation of the e-gatematrix technology, real time communication of changes is achieved. The e-gatematrix application supports a variety of information changes such as meal services, flight attendance, and regulation of certain flight equipment such as knives and supply chain changes. Furthermore, the Gate Gourmet strategically managed their sources, which resulted to cost savings. This was because of efficient communication to the services providers and their suppliers.
b) Prerequisites for Operation of Lean Structure Systems
A fundamental requirement for the operation of the lean system is the presence of an effective communication system (Sehgal, 2011). Through the e-gate matrix, the Gate Gourmet can be able to send real-time data to the Scala software effectively in case of changes in meal service, flight attendance or supply changes. In addition, such a system requires expertise in running and managing it. Furthermore, this system requires adequate resources in terms of finance for purposes of upgrading and servicing. A system that does not perform at its best may result to increased operation costs for the organization (Sehgal, 2011). Moreover, for the application of the lean system, areas where there is wastage in the supply chain need to be identified and areas where improvements can be applied are essential.
A lean system will be required to reduce wastes. These wastes include, overproducing, waiting, transportation, excess inventory, over processing, excess inventory and scrap materials. In addition to the waste reduction, the lean system has to have certain principles for it to function efficiently. This include just in time (JIT), continuous improvement and Jidoka (making problems visible). These principles help in relating the structural components of the lean system with the behavioral components.
Question 2: a) Supply Chain Challenges at Gate Gourmet
Gate Gourmet usually faces time constraint as a challenge in dealing with the demand fluctuations. This is exhibited where a long haul flight stops for only three hours during, which the Gate Gourmet staff is supposed to un-board and re-board passengers. In addition, the staff is charged with the responsibility of unloading used cutlery and rubbish from the plane. Furthermore, the staff is required to load about five tons of food and drinks for the return flight.
Another challenge they face is of passengers who arrive late and request meals as per airline specifications. In addition, they have to consider that some passengers require a specific diet in terms of the level of nutrition involved. Furthermore, the Gate Gourmet staff has to ensure they do not prepare excess food, as this would be a loss to both the airline and them.
Despite having the number of passengers for each flight, Gate Gourmet caterers have to be prepared to deal with increases in the number of passengers just before the plane takes off. This is because the number of passenger traveling for each flight can only be fixed six hours prior to takeoff. In addition, the actual menus for each flight will depend on the mix of passengers traveling; aircraft type and the destination even if the menus are normally set six months prior to date of travel.
Notwithstanding the use of high-end technology in their catering services, Gate Gourmet largely depends on handcrafted food manufacturing process. This proves to be a challenge especially since a large number of airline customers have to be accounted for in the production of the meals. Furthermore, use of technologies such as a conveyor belt system is impossible since Gate Gourmet prepares around 570,000 hot and cold meals daily using repetitive cooking techniques that preserve quality. Each food prepared should resemble the cultural features of each destination.
b) How Supply Chain Investments Supports the Overall Customer Service and Resource Utilisation Objectives
Supply chain investment promotes profitable growth by increasing value of the services offered. Using the new technologies, Gate Gourmet has been able to provide a wider supply chain with the e-gatematrix system. In the course of utilizing this system, the Gate Gourmet obtains schedule data for the airline customers that allow enough time for procurement and preparation of airline and supplier invoices on time.
In addition, the e-gatematrix system has assisted Gate Gourmet to handle increased changes within a short time after being notified. For instance, by employing the e-gatematrix system, the Gate Gourmet was able to communicate effectively with its airline customers about flight attendance and meal services changes after the September 2001 attacks. Furthermore, the e-gatematrix system enabled the Gate Gourmet to inform suppliers of the new demand expectations, which resulted to a reduction in the production volumes in the entire supply chain.
Use of e-gatematrix technology reduces the cost and time that would be required to deploy human resources to carry out its functions. This allows Gate Gourmet to have a competitive advantage over other players in the flight catering business (Wisner, Tan and Leong, 2008. Further, through the e-gatematix system, Gate Gourmet can be able to integrate real time data in the preparation of food, which helps in minimizing delays. Moreover, the use of technology in the supply chain investment helps Gate Gourmet to standardize their decision making process (Wisner, Tan and Leong, 2008).
Lambert, D. M., 2008. Supply Chain Management: Processes, Partnerships, Performance. 3rd
ed. Florida: Supply Chain Management Institute.
Sehgal, V. 2011. Supply Chain as a Strategic Asset: The Key to Reaching Business Goals. New
Jersey: John Wiley and Sons.
Wisner, J.D., Tan, K. and Leong, G.K. 2008. Principles of Supply Chain Management: A
Balanced Approach. 2nd ed. Ohio: Cengage Learning.
