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Logistics and Airline Procurement

Module name (EN): Logistics and Airline Procurement
Degree programme: Aviation Business (Basic), Bachelor, ASPO 01.10.2015
Module code: ABBG25
SAP-Submodule-No.: P410-0025
Hours per semester week / Teaching method: 4V (4 hours per week)
ECTS credits: 5
Semester: 4
Mandatory course: yes
Language of instruction:
Written exam (120 minutes)

[updated 01.10.2020]
Exam recurrence:
The information regarding exam recurrence is found within the exam policy of the study programme (ASPO).
Applicability / Curricular relevance:
ABBG25 (P410-0025) Aviation Business (Basic), Bachelor, ASPO 01.10.2015, semester 4, mandatory course
ABBG25 (P410-0025) Aviation Business (Basic), Bachelor, ASPO 01.10.2018, semester 2, mandatory course
60 class hours (= 45 clock hours) over a 15-week period.
The total student study time is 150 hours (equivalent to 5 ECTS credits).
There are therefore 105 hours available for class preparation and follow-up work and exam preparation.
Recommended prerequisites (modules):
Recommended as prerequisite for:
Module coordinator:
Prof. Dr. Joachim Klein
Prof. Wilhelm Hauser (lecture)
Prof. Dr. Joachim Klein (lecture)

[updated 04.05.2016]
Learning outcomes:
After successfully completing this part of the module, students will have acquired knowledge about the special features of different modes of transport and the legal and economic framework conditions of logistics (national/international) and will be able to apply these conditions to choose the most economical mode of transport. Students will be familiar with the following topics: cost categories, as well as the key figures of individual modes of transport, for example the cost types of an airline (calc. depreciation, calc. interest, kerosene, personnel, maintenance) as well as the key performance indicators of an airline (passenger kilometres (RPK), tonne kilometres (FTK), available seat kilometres (ASK), seat load factor (SLF), etc.).
During the course, students will apply their acquired skills and knowledge about modes of transport management to exercises on various topics, e.g. calculating the advantages of air freight versus express transport using the example of insulin production, calculating the advantages of a hub and spoke system, calculating the advantages of fuel hedging, calculating the cost and profit effects of using a central warehouse versus several regional warehouses or calculating the profitability of outsourcing measures in the different areas of a company.
They will also apply their knowledge about the special characteristics of road freight transport to analyzing and calculating various issues, e.g. calculating driving and rest times, analyzing the effects changes in delivery frequency, preparing a time and cost comparison of the semi-trailer and articulated train systems, determining the temporal utilization of trucks and a business assessment on outsourcing logistics services. Practical calculation examples are always followed by an economic analysis. This is followed by the development of improvement proposals. The special characteristics of the rail and shipping modes of transport will be discussed by means of concrete questions from logistics practice, e.g. by comparing the costs, time requirements, environmental impact and availability of the modes of transport. Students will carry our optimization calculations and the advantages and disadvantages of these modes of transport will be explained. Finally, the module will deal with various questions regarding the efficiency of personnel deployment for the different modes of transport and provide knowledge on budgeting and budget control by using the methods of zero-base budgeting and overhead cost value analysis. The topics dealt with in the lectures will be deepened by talks from an experienced external practitioner and/or by a visit to a logistics company.
Airline procurement logistics:
After successfully completing this module, students will be able to name the goals and tasks of logistics and present current developments and logistics concepts. They will be familiar with the objectives and focal points of procurement activities in the airline industry and be able to describe the specifics of commodity group management in the industry. Students will gain insight into the procurement activities of selected functional areas of an airline and understand their economic significance. They will become familiar with the phases and activities involved in the procurement of the production factor "aircraft" and be able to associate the effects of fleet development on the profitability and sustainability of an airline.  

[updated 01.10.2020]
Module content:
- The logistics industry in Germany and the European Union
- Functions in logistics
- Changing framework conditions in logistics
- The role of the government in logistics
- The centralization vs. the decentralization of logistics functions
- Selecting means of transport (airplane, truck, train, ship and combined transport)
- Air transport
- Road transport
- Rail transport
- Shipping
- Logistics as a marketing instrument
Airline procurement logistics:
A. The basics
1. Logistics definitions
2. Goals of logistics
3. Logistics tasks
4. Logistics concepts
B. Procurement in the airline industry
1. Thematic areas and stakeholders
2. Product group management
3. Supplier management
4. Procurement controlling
5. Organization of purchasing
C. Product group management for airlines
1. Technology
2. Inflight
3. Ground services
4. IT
5. Facility management
6. General purchasing
D. Aircraft procurement
1. Global market forecast 2011-2030 (Airbus/Boeing)
2. Overview of the aviation industry
3. Aircrafts as resources
4. Capacity and fleet planning
5. Procurement and financing

[updated 01.10.2020]
Teaching methods/Media:
Lecture in dialogue with case studies from logistics practice.
Airline procurement logistics:
Lectures, presentations, case studies from the aviation industry

[updated 01.10.2020]
Recommended or required reading:

[still undocumented]
[Thu Sep 29 00:50:25 CEST 2022, CKEY=alub, BKEY=avg2, CID=ABBG25, LANGUAGE=en, DATE=29.09.2022]