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Supply Chain Analysis of Delta Airlines

Delta Air Lines operates in the highly competitive US airline industry, where various factors such as fuel prices, weather, labor and unions, the macroeconomic business cycle, and regulation significantly impact operational decisions. The digitalization of supply chains has brought about implications for Delta and the industry as a whole .

During the pandemic, Delta played a critical role in the global supply chain by supporting efforts to end the pandemic and reconnect the world. Notably, Delta was the first U.S. passenger airline to launch cargo-only services using passenger aircraft. It operated daily cargo flights carrying medical supplies and shipped millions of Covid-19 vaccine doses from the U.S. to Colombia, demonstrating its significant role in the global supply chain .

Heather Ostis serves as the Vice President of Supply Chain Management at Delta Air Lines, overseeing global strategic sourcing operations and supply chain systems. Delta is also the first U.S. airline to partner with EcoVadis, a provider of business sustainability ratings, highlighting its commitment to sustainable and responsible supply chain practices .

Delta Air Lines has made strategic moves to integrate supply chain processes into its business operations. For instance, it acquired the Trainer Refinery from ConocoPhillips in 2012 to source discounted jet fuel for its operations, showcasing a vertical integration strategy to enhance its supply chain .

Delta's use of technology, such as RFID for tracking airplane parts and predictive analytics through partnerships with companies like Airbus, demonstrates its commitment to leveraging advanced tools to ensure a smooth and efficient supply chain .

In line with its commitment to sustainability, Delta is working towards net-zero carbon emissions by 2050 and is encouraging its suppliers to set their own net-zero goals. The airline has also partnered with EcoVadis to increase transparency in its supply chain processes and ensure alignment of values with its suppliers .

Delta Air Lines also places emphasis on supplier diversity, working with diverse suppliers and supporting meaningful business opportunities for minority and women-owned businesses within its supply chain .

In analyzing Porter's Five Forces model, Delta's position as the world's largest airline by passenger revenue in 2019 gives it strong bargaining power with suppliers. Additionally, the threat of substitutes and competitive pressures in the airline industry underscores the importance of effective supply chain management for Delta .

In summary, Delta Air Lines' supply chain is influenced by various external factors, and the airline has demonstrated a commitment to sustainability, technological innovation, and supplier diversity in its supply chain operations.


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