Supply Chain Management

A Test Case of Abu Dhabi Airport

Dr.Mohan Agarwal
Introduction
Supply Chain Is the flow of goods and services, which include the movement of Management
Science (transfer) and storage of raw materials and finished goods (finished products) and
inventory from the starting point (point of origin) to the point of consumption (the arrival of the
product or service to the final consumer). And supply chain management also is the relationship
between supplier and customer resource management between the client and the participants in
that chain.

The following are the Supply chain management objectives:

1. Increase the amount of information at the same time
2. Reduce operating expenses and inventory operations.
3. Find transparency in information and reduce the obstacles that can exist.
4. A comprehensive concept of operations for supply.
5. Improve the continuity of management and information materials and cash flow.
6. Reduce the complexity of the business as much as possible.
7. Realizing the benefits from the point of cost, time and quality.

The City of Abu Dhabi

Abu Dhabi (meaning in Arabic Father of the gazelle) is the capital city and the largest of the
seven Emirates making up the United Arab Emirates (UAE). Abu Dhabi is the seat of the Federal
Government and is the country's political and industrial hub as well as being a major historical
and cultural centre. It is a city of contrasts. You'll find the domes and minarets of traditional
mosques nestled beside ultramodern skyscrapers, chic five-star hotels near vibrant traditional
souks (markets) and futuristic tourist attractions neighbouring kilometres of rolling desert dunes.

Economy
Covering around 87 per cent of the UAE's total land area, Abu Dhabi possesses 94 per
cent of the country's oil reserves and, as the world's fourth largest oil producer,
contributes 10% of the world's oil. An initiative aimed at diversifying its economy has
evolved Abu Dhabi into a magnet of foreign investment. It is now a cosmopolitan city
boasting one of the highest per capita incomes and one of the lowest crime rates in the
world.

Population
The UAE's population has grown exponentially to 8.26 million in mid-2010, a growth of
65% in only four years, as strong economic growth has attracted a workforce from all
over the world. The population of Emiratis stands at close to one million. The Emirate
has the largest population (42 per cent) of UAE nationals.

Heritage and Tradition

Islam is the official religion of the UAE. However, other religions are respected and are
diversely represented. The official language of the UAE is Arabic, but English is widely
spoken and understood, with both languages being commonly used in business and
commerce. The city's progressive vision is tempered by a deep-seated respect for
traditions and culture. The artefacts and tools of its early inhabitants, pearl divers,
fishermen and dhow builders, are carefully preserved and displayed. Especially honoured
is the Bedouin way

Abu Dhabi International Airport

Abu Dhabi International Airport (Arabic: ( ) IATA: AUH, ICAO: OMAA) is

an international airport in the Emirate of Abu Dhabi, the capital of the United Arab Emirates.

The airport, 16.5 nautical miles (30.6 km; 19.0 mi) east of Abu Dhabi city, is the second
largest in the UAE, serving over 12 million passengers in 2010. It has three operational
passenger terminalsTerminal 1 (divided into Terminals 1A and 1B), Terminal 2,
Terminal 3. Abu Dhabi International Airport is spread over an area of 3,400 hectares
(8,500 acres). Its terminal spaces are dominated by Etihad Airways, which is the United
Arab Emirates' second largest air carrier after Emirates.

53 airlines offered service to 85 destinations in 49 countries with non-stop services to all

inhabited continents, the only other airports doing likewise are Dubai International
Airport, Johannesburg Airport, Hamad International Airport, and starting on December
15, 2015, Houston-Intercontinental.

Development work has started on a new passenger terminal, the main building and
centerpiece of the new airport, to be between the two runways and known as the Midfield
Terminal. Upon completion in 2017, the Midfield Terminal will increase the airports
passenger capacity to more than 30 million per year, with options for this to double in
capacity to 60 million An additional facility is under consideration that would take the
capacity to 80 million.

The expansion master plan projects include a third 4,100 m (13,500 ft) parallel runway,
2,000 m (6,562 ft) from the existing runways, a new 110 m (360 ft) tower between the
two runways with the new Air Traffic Control centre, enhanced cargo and maintenance
facilities, and other commercial developments on the land immediately adjacent to and
north of the airport.

Having a total of 34 square kilometres (13 sq mi) of vast land area, the ambitious project
will provide a home base for the UAE's national carrier, Etihad Airways, which will be a
major user of new cargo facilities with an ultimate handling capacity of around two
million tonnes of freight a year. Close to the new cargo facilities, land has been allocated
for commercial activities, business parks, and property developments. Aircraft
maintenance facilities will continue to be concentrated on the south side of the existing
airport. The plan sets aside land for the growth of other operators such as Royal Jet and
Abu Dhabi Aviation.

Among other aspects of the project, when completed, are the design of remote aircraft
stands complete with airfield ground lighting and hydrant fuel. The general exterior of the
terminal resembles that of the new terminal built at Mumbai Airport because it was
designed by the same architect, Skidmore, Owings & Merrill.

A check-in facility exists in downtown Abu Dhabi, for travelers who want to check in
before they fly. This facility, known as the City Terminal, resembles an airport and has
lounge and transport facilities. After having checked-in at the City Terminal, travelers can
arrive at the airport just one hour before the departure of their flight

In December 2011, the government of Abu Dhabi signed a letter of intent to build
a United States border preclearance facility similar to pre-clearance customs facilities in
Canada, Australia, the Bahamas, and Ireland. Etihad operated its first flight to the U.S.
from the facility January 25, 2014

Abu Dhabi International Airport has two parallel runways, 13R/31L and 13L/31R. Both
are 4,100 m 60 m (13,450 ft 200 ft)

Etihad Airways provides buses between Dubai and Abu Dhabi International Airport for
their customers, as well as a coach service to Al Ain. A city bus also connects the airport
to Abu Dhabi city centre.

Abu Dhabi International Cargo

Established in 2004, Etihad Cargo is the fast growing cargo division of Etihad Airways. From its
hub at Abu Dhabi International Airport, Etihad Cargo offers its customers a range of cargo
services linked to its expanding international route network and aircraft fleet.
Etihad Cargo operates a fleet of nine dedicated cargo aircraft consisting of one Boeing 747-8F,
three Boeing 777-200F, four Airbus A330-200F, two Boeing 747-400F that fly on scheduled
services to 24 of the airlines passenger destinations in Europe, the Middle East, Asia and Africa.
The airline also operates cargo freighters to a further 13 freighter-only destinations that include:
Eldoret, Guangzhou, Chittagong, Dar Es Salaam, Entebbe, Hanoi, Sabiha Gokcen, Kabul,
Miami, Quito, Sharjah, Viracopos, Tiblisi and Djibouti.
Etihad Cargo carries most types of air cargo traffic and adheres to international and aviation rules
and specifications. Customers can book their services directly throughEtihad Cargo offices
worldwide.

Airlines
Cargolux

Destinations
Luxembourg

DHL International Aviation

Bagram, Bahrain, Karachi, Lahore
ME

Etihad Cargo

Addis
Ababa, Almaty, Amsterdam, Bangalore, BeijingCapital, Benghazi, Bogota, Campinas,Chennai, Chicago Chittagong,
Chongqing, Dammam, Delhi, Dhaka, Djibouti, Doha, Dubai-Al
Maktoum, Eldoret, Entebbe, Erbil, Frankfurt, Guangzhou, Hanoi, Ho
ng
Kong,Houston, Istanbul-Sabiha
Gken, Johannesburg-OR
Tambo, Kabul, Karachi, Khartoum, Kuwait, Lagos, Lahore, Miami,
Milan
-Malpensa,Moscow-Domodedovo,
Mumbai, Nairobi, N'Djamena, Quito, Shanghai-Pudong, Sharjah, Si
ngapore, Tbilisi, Vienna

Singapore Airlines Cargo

Amsterdam, Chennai, Copenhagen, London-Heathrow, Sharjah, Sin

gapore

Star Air Aviation

Karachi

Supply chain in Abu Dhabi airport

Abu Dhabi airport was able to consolidate its position on the map of the global supply chain for
the aviation industry, and Strata Company which has specialized in the manufacture parts of
aircraft structures from composite materials to become global provider of external surfaces of the
bumper wings of Airbus.

E-procurement Technology:
E-bidding system ensure the Abu Dhabi airport as a resource potential of transparency and
communication with us in all phases of the process. The system highest degree of transparency
and enhance the interaction between buyers and suppliers and ensure fair judgment of all our
activities through purchasing. E procurement to potential suppliers provides the following:

Access to the latest opportunities in Abu Dhabi airport.

Secure interactions with Abu Dhabi airport via the Internet.

Links to useful information and documents

Importance and benefits of supply chain in AUH

The benefits accrue to the supply chain management for the client where reduction happens in
inventory through transfer of the products directly to the place of purchase then the store it and
be responsible for it. The impact on the supplier may be more difficult for classification as
interest initially, the situation is different, but
include benefits for both customers and
suppliers as follows:

Customers:

One of the most important aspects of the

business is to achieve customer, contact
them and acquisitions, and management
of the supply chain will help the
organization to achieve this, simply
because the supply chain begins and ends with the customer. It's by knowing what the
client want? And when it wished to do so? And the speed of delivery of products to him.

Cost:
Supply chain can lower the of an efficient and increase the market share and sales, and
build strong relationships with the customer, all this leads to savings, which means
increased cash flows for the organization and increase the value of stocks. Supply chain is
the way to achieve operational excellence and to increase the market value of the facility,
and good management of the supply chain also ensure that proper quantities shipped the
lowest prices and to reduce the cost of distribution also selecting the transportation to
make sure delivery on time with lowest cost.

Market value:

Optimization of the supply chain can confirm positively on the five elements leading to
the market value is for sales growth, cost reduction, The efficient use of fixed assets,
doing business with distinction. That efficient in supply chain, the appropriate amount of
fast moving products to market, the result of her high sales.

Technology used in Supply Chain in Abu Dhabi Airport:

The development of the supply chain and technological expansion that support multiple levels of
decision-making and give a clear overview of the flow of products, service s and information.
With continuing curriculum re-engineering processes, many developed companies replace
process despite the weak integration of information system with the company's major operating
systems. There are a number of tools available for organizations to facilitate supply chain
management can display some of these key instruments as follows:

International information network (internet).

The information network developed and entered the market of commercial transactions,
the use of the network and the various sites helped integrate with customer organizations
and also with suppliers. Determine the importance of supply chain management in
addition to their presence in the environment, so that information of fact to meanings
when cultural border crossing.

Electronic data exchange.

Over the last decade the phenomenon common economy and growing technology and
market forces, the process of reinventing supply chain strategies and some of these
include the globalization of business and the impact of product diversification, increased
complexity of supply networks and short product life cycles.

Technologies.
This technology found on the principle that the manufacturing layout cannot be
implemented alone faster but it can build a real business goals and circumstances
surrounding. From that time and the second information technology is evolving rapidly
and where smart planning technologies develop for all aspects of production? Sale and
delivery of products and services, comprehensive solutions that supports smart e-business
and e-commerce.

References
1. http://www.abudhabiairport.ae/
2. "Abu Dhabi International airport - Economic and social impact". Ecquants.
Retrieved September 7, 2013.
3. "ASQ Award for Best Airport in Middle East" Airports Council International. 14
February 2012. Retrieved 2012-04-13
4. "Three decades of success". ABUDHABI AIRPORT. Retrieved 1 June 2015.
5. "Abu Dhabi International Airport". Abu Dhabi International Airport. 2009.
Retrieved 2009-09-29.
6. "Midfield Terminal Complex Development". ABUDHABI AIRPORT. Retrieved1
June 2015.
7. DHL and Etihad Cargo increase connectivity through the Middle East
8. "Etihad Cargo to partner with Avianca Cargo on new freighter service".
Retrieved 1 June 2015.
9. "To and from the airport - Abu Dhabi International Airport". ABUDHABI
AIRPORT. Retrieved 1 June 2015.

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