Problem

Full Service Airline X was disturbed by continued distribution cost rises and
was uncertain of the value and cost effectiveness of each channel.  They also
suspected that some rivals had much lower channel distribution costs.
Revidio was brought in to help review strategy, assesss which channels fit
best with Airline Xs customer and product strategy, and how to get the best
deals from supply chain partners.
CASE STUDY:  Airline Distribution
Approach

The project had four discrete phases, Strategy review and objectives, Cost
and Performance Diagnostic for each step in the distribution chain,
Re-design and Implementation.
Recommendation

A rebalancing of  channel strategies with clear objectives for each.  A
negotiating gameplan for each major supply-chain partner and a strategy
that saves fully 30 percent of end-to-end supply chain costs over 3 years.
Benefits

'Quick-win' efficiencies
identified in the diagnostic
phase had paid the full cost
of the project before the
main phase of supplier cost
negotiations had begun.