Retail Logistics is about managing the inventory and flow of goods and services

Question

Retail Logistics is about managing the inventory and flow of goods and services from the manufacturer to the customer in an uninterrupted manner in the most cost effective way.It is making the right product available to the right customer at the right time.In order to achieve this, meticulous inventory planning is required so that the overall customer experience would be satisfactory. If there would be unavailability of products at any point of time the overall customer experience gets negatively impacted.

In case of American Airlines, the company was not able to do effective inventory planning. They were not able to manage the inventory of the pilots as the leaves for many pilots were sanctioned at the same point of time and now the company is not left with required number of pilots to run flights during the time of Christmas. As a result of this mismanagement of inventory,the overall customer experience gets negatively impacted.

In order to manage the show, the company is now paying 150 percent of the hourly wage rate to the pilots, thus increasing the overall cost of the company.

Recommendations

Financial Analysis

American Airlines is running in a sound and profitable condition financially. The company's net profit margin is quite high (+6.66%), which indicates that the company is able to manage its cost low so as to keep the profits high. Sales and Revenue growth is also satisfactory (+2.68%) ,sufficient enough to expand its business. Company's Return on Asset is quite high (5.37), which also indicates a sound position of the company.

Explanation / Answer

Topics to consider: What Given your understanding of retail logistics, disouss recommendations might you makke to the company? How will this crisis impact customer's total retail experience? Discuss American Airines current financial dimensions (Net Profit margin, asset turnover, return on assets, net worth etc). Discuss American Airines retail strategy This is your opportunity to showcase your analytic skills, general business knowledge and communication skills. There is no minimum or maximum length requirement

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