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EMIRATES

About The Company:

Emirates Catering Unit is part of EFCC, under the umbrella of Dnata of the Emirates Group. It employs 4000 staff and provides in-flight catering and support services for airlines at Dubai International Airport.

EFCC is renewed to provide high quality services to 110 airline customers, with each and every meal being individually prepared. In year 2005, the company produced over 60,000 meals a day working around the clock, delivering 18.5 million meals to 75,500 flights. It also provides food and beverage services in the airport terminals. 

A multimillion dollar program of expansion and investment was underway to cope with the continuing growth of Emirates Airline and of Dubai International Airport. This included a new Emirates dedicated flight catering facility with a capacity to handle 90,000 meals a day, and off-site food production facility and off-site industrial laundry facility.

The completion of this project was estimated at a cost of US$120 million (Dhs441 million), and geared to be fully operational by the end of 2006.

Emirates Group was looking at ways to improve its supply chain operations in order to increase its competitive advantage in the market. 

To support Emirates Catering Unit to achieve its primary high level goal: to sustain its competitive advantage in a fast growing environment, a proven methodology was required: the SCOR model.

By using the SCOR model, our 2-phase top down approach consisted in the assessment of the current Supply Chain of Emirates Catering (Mapping of facilities, processes, systems and organizations) and the identification of strategic improvement opportunities with the introduction of performance benchmark and best practices. 

4 strategic initiatives had been recommended to release 5.5m USD:

1. Supply Chain Network Design
• Set-up a Regional distribution center in Europe and Far East to get the best balance between responsiveness, inventory and transportation cost. • Identify key logistics service provider for the company and to get more visibility into the freight cost.
• Establish service level agreement with service providers

2. Supplier Relationship Management
• Establish supplier performance measurement
• Educate suppliers about specific requirements and procedures • Develop collaboration relationship with suppliers

3. Sales & Operations Planning
•Review current processes and develop a standard plan process/framework for the supply chain aligned with company wide objectives
• Evaluate and implement demand planning and forecasting tool
• Develop a communication and information sharing process with supply chain partners

4. Supply chain performance measurement and monitoring

system
•Build up a competitiveness pole to monitor performance and drive continuous improvement
•Implement an overall process and framework to streamline flow of data to measure performance metrics
•Improve data accuracy 

Emirates Case Study