Logistics in Ryanair

Ryanair is one of the most popular airlines in Europe, mainly because of its low fares. Their business model is based on ‘Low cost’, for doing this, they use a series of strategies such as using only one type of aircraft, the Boeing 737, so all their pilots can fly all the aircrafts, also the maintenance is the same, therefore the costs are reduced.

Ryanair has more than 450 aircraft, to manage this fleet of aircraft, Ryanair uses a ‘Maximum Utilisation’ strategy, with the aim of reducing downtime between flights. It is not uncommon to be queuing to catch a Ryanair plane and see passengers getting off the same plane you are about to catch. To do this, the company uses advanced fleet planning tools.

Another curious fact about Ryanair is that they buy used planes and then modify them to meet specific needs, so they can buy cheaper planes, and it is not only because of the price, but also because new aircraft normally have a long waiting time before they are delivered. In addition, as I said you can configure the aircraft according to your specific needs, e.g. more seats can be introduced.

But talking about logistics, the most remarkable thing is:

– They schedule flights in advance and do it strategically, I mean, they only focus on profitable routes with high demand and use secondary airports, which allows them to reduce costs and offer cheaper fares.

– In addition, they have to manage the supply chain with their food and beverage suppliers. Ryanair has a ‘central purchasing office’, or in other words, the company has a supply chain management team that is responsible for coordinating the delivery of supplies to all the airports where the company operates, instead of each team ordering separately from suppliers, which would cause chaos.

– They also have a flexible crew model in which pilots and cabin crew work at different bases across Europe, ensuring that they are adequately staffed.

In conclusion, Ryanair is one of the most powerful companies in Europe, and this is achieved thanks to having all the processes and procedures well defined and studied.

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IA in logistics

New technologies have developed a lot in the last decades and more specifically, artificial intelligence is playing an important role in our lives. But, what role does artificial intelligence play in logistics?

Firstly, it can be very useful for route optimisation and scheduling, as it has a large amount of data that can be used to plan the most efficient and accurate shipping route. It can also help drivers avoid traffic problems and delays, reducing delivery times and shipping costs.

Secondly, It can also be used to forecast demand, as artificial intelligence is able to analyse sales history and predict demand, which helps distributors to plan production and distribution. For example, algorithms can analyse sales data and demand trends to predict the amount of products to stock and replenish, helping to avoid overproduction and excess inventory.

Moreover, nowadays most of the factories are automated, artificial intelligence could also be applied at this point. for example, it is possible to track shipments and manage inventories. it can also avoid many human errors.

It can also be very useful for storage optimisation, for example with the location of products. By analysing sales data and demand trends, AI can determine how much space is needed for each type of product and how the warehouse should be organised to maximise the use of available space.

Finally, artificial intelligence can also help detect patterns and anamolies in data to improve supply chain security.

Tips on how to save when shopping:

1.- Supermarket selection

Not all supermarkets are the same. Although the vast majority of people in Spain go to Mercadona, I go to Consum, why? Discounts. If you are a member (which doesn’t cost anything), there are certain products to which a discount called a ‘cheque regalo’ is applied. Just for buying these products you accumulate 1.25% of the total monthly purchase if it is more than 125 €, or 0.75% if it is less than 125 € but more than 50 €. In addition, you can choose 9 products through the app to which a personal discount is applied as long as the average of the last 5 months is more than 125 euros. And what’s more, there are exclusive discounts for members called ‘cheque crece’.

I shop for myself, and I tend to eat out quite a lot, I make purchases of about 30 euros for 10 days, that is to say I don’t reach the 125 euros needed to get the biggest discounts, I have accumulated 20.12 euros since January 2022. It is not much, but because I buy little. If it was a family of 4 people and they spent 30 euros per person (the same as me), they would spend 120 euros every 10 days, that is 360 euros per month, only applying the discount of 1.25% per month, they would save 54 euros per year, without counting the discounts on personal products or the ‘cheque crece’.

2.- Always go to the same supermarket

When you go to a new supermarket you don’t know where things are, and you waste a lot of time finding the products you need, and on the way there you ALWAYS pick up more products.

3.- Have a definite shopping list and a definite shopping day.

I think it is essential to know what you want to buy, if you can follow a menu, it will be easier at the time of purchase. Besides, I have an assigned day to go shopping, always on Mondays. Why? Because the weekend is usually when I eat out and if I buy fresh produce on Friday, it will probably start to go bad on Monday.

4.- How to choose a product

There are people who don’t care much about the price and directly take the product without thinking about the price, the size… what I do is: first think about what I need, sometimes it’s cheaper to buy more, but if I have to throw it away it will end up being more expensive. Secondly, look at the price/kilo. If you look on the label there is a small piece of information written on it, that is the price per kilo, this is important if you want to compare products. For example, the other day I went to buy salmon and I always buy frozen salmon because I always thought it was cheaper, but I compared it with fresh salmon from the fishmonger’s and the difference was not that big, and the difference in quality is huge.

5 ways to improve the logistics management process

Focus on order-to-delivery lead time.

Customer satisfaction is the main important goal of any logistics chain, as it affects the image of your company. One of the most crucial aspects of  the customer’s opinion is the time you take from order placement to delivery, it doesn’t matter how well you manage all other aspects of your business operations if your customer’s opinion is affected by long order delivery times.

Evaluate and redefine your standard operating procedures.

To minimize production inefficiencies, you should make some changes to your SOPs  (Standard Operating Procedure). This is not difficult with a few small steps can achieve big results:

• Implement a double-check system to reduce human error and duplicate shipments.
• Print and show your key policy terminology throughout the facility.
• Use analytical reports to share market behaviour and sales flow trends with your team.
• Make sure people are clear on their roles and responsibilities.

Examine transportation and redesign for cost/time efficiencies. 

The biggest expense in logistics is often transportation, especially if it is not properly planned and executed. No matter the industry, an increase in transportation costs usually translates into higher prices for goods. Analyse all aspects of your transportation process to determine where costs are highest. Start with the delivery route and load planning, choosing the shortest and safest route and using truck scales to ensure that vehicles carry the full load. Also, product packaging should also be designed to minimize size and weight without compromising safety.

Optimize warehouse management for maximum productivity.

Proper warehouse management is an essential aspect of any logistics process, as it affects everything from lead time to inventory management and even product quality. Regardless of the products stored, some improvements can help you to reduce wastage and speed up operations. For instance, you can maximize storage space by using vertical columns and implement industrial scales to help warehouse staff weigh goods faster and more accurately.

Use automation and new technologies.

Modern tools and systems are designed to accelerate organizational efficiency and lead times by reducing manual interference and eliminating human error. From smart scales that integrate with warehouse management systems and track inventory to business process and communication software that provides real-time updates for any aspect of goods movement, there’s a customized solution for practically any logistics challenge you might face.

https://www.bicmagazine.com/departments/maintenance-reliability/5-ways-to-improve-the-logistics-management-process/

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