Malaysia Airlines Berhad - How Malaysia's Flag Carrier Manages Its Supply Chain?
As the flag carrier airline of Malaysia, how has Malaysia Airlines Berhad been improving its operational efficiency and customer satisfaction through supply chain management, in a competitive and challenging industry like aviation?
At a glance
Country of Origin
Malaysia
Industry
Aviation
Establishment
1947
Abstract
Malaysia Airlines Berhad (MAB), the national flag carrier of Malaysia, has faced significant challenges and opportunities in maintaining operational efficiency and customer satisfaction amidst a highly competitive and dynamic aviation industry. This case study examines how MAB leverages Supply Chain Management strategies to address environmental uncertainties and enhance service value. Employing frameworks like Porter's Five Forces, the study explores MAB's position in the industry, and its efforts to streamline procurement, optimize logistics, and integrate innovative technologies.
The airline's journey reflects resilience, as it navigated reputational crises following the MH370 and MH17 incidents, responded to the disruptions caused by the COVID-19 pandemic, and competed with low-cost carriers like AirAsia. By outsourcing non-core operations, aligning supply chain strategies with business objectives, and investing in sustainable practices, MAB has improved cost efficiency, operational performance, and customer loyalty.
The study provides critical insights into how MAB can capitalize on its brand legacy and expand in emerging markets while adhering to sustainability goals. It serves as a problem-solving guide for understanding supply chain management complexities and identifying competitive advantages within the aviation sector.
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