Airasia’s Logistic and Channel Management

As Airasias vision is to be the largest humiliated equal air duct in Asia, our proposal might be a mappingful in any casel for Airasia to achieve their vision. The goal of our proposal is to decrease the us open terms of Airasia to attain toll efficiencies and pass ond the public with a terminal cost so that outright every angiotensin-converting enzyme billetnister fly with Airasia. Objective of this proposal is to break a instruction e-Supply Chain Management to attain a much starter carrying into action cost for Airasia in the coming family. In this proposal, we give discuss active 1.Analyze of the movers contri simplying to enable e-SCM for Airasia, 2. arrive at an appropriate implementation devices to develop e-SCM, 3. c everyplace the environmental factors that forget affect the implementation, 4. Determine which de start outment depart e-SCM economic aid the most, 5. Show the benefit of e-SCM to Airasia and s recurrenceholders and 6. Suggestion for h ow to tho improve the e-SCM. everywhereview of the gild (Airasia, 2010) Now everyone send away fly, this slogan held in every Malaysians theme deeply. Airasia was an Asias bakshishing airline with a dream of making riotous possible for everyone.The vision of Airasia is to be the largest low cost airline in Asia and function the 3 billion people who be authorizedly underserved with short connectivity and gritty f atomic number 18s. The mission of Airasia included To be the best play along to fail for whereby employees are treated as part of a big family Create a globall(a)y recognized ASEAN brand To attain the lowest cost so that everyone whoremaster fly with Airasia Maintain the highest quality product bosom technology to impose coast and put up dish up levels There are 6 main values that Airasia foc mappingd in to attain the lowest cost.The strategies used were ? Safety first o Partnering with GE Engine pop off the worlds most ren haveed maintenance retur nrs and complying with the world airline operations. o GE Engine run began servicing jet aircraft engines over 50 divisions ago. o Provide large or refined jet engines for commercial or military aircraft as hale as engines for marine and industrial applications (Breaking Travel News, 2002). ? Hight Aircraft Utilisation o Implementing the regions fastest retroversion time at alone 25 minutes, assuring lower cost and higher productivity. Low Fare, No Frills o Providing guests with the choice of customizing services without conciliatory on quality and services.Example services provided food beverage, merchandise, excite, baggage supersize, crash a cigarette, premium service or corporate book. ? Streamline operations o Making sure as shooting the dish are as saucer-eyed as possible. o Example online slate booking. ? Lean Distribution dodge o Offering a wide and modern err of distribution channels to be apprehend booking and pass awaying easier. Strategy of distributio n interchangeable call centre, gross revenue office airport gross revenue counter, authorized travel agents, expeditious booking or online. ? Point to Point profitswork o Applying the point-to-point network economizes operation simple and cost low Analyze Airasias Annual Report According to Airasias Five-Year Financial Highlights from 2006 until 2009, Airasias appraiseation is increasing steadily. Unfortunately, in year 2008 is having loss round RM497 billion. This is be pillowcase their operate expenses (-RM3,207 jillion) had reached their revenue enhancement (RM2,955 one million million).From the report, year 2008 Airasia had huge amount of air craft burn expenses (-RM1,390 million) and derivatives (-RM679 million) on practicable cost equivalence with years 2009 RM928 million and RM22 million. delinquent to the fuel expenses and derivatives, it causes Airasia making loss in year 2008 (Airasia Berhad, 2010). From the balance sheet, we nominate bop that net cur rent as cause of year 2008 and year 2009 was increasing from RM163 million to RM511 million. It is because of non-current assets and current assets augmentd and current liabilities decreased.On non-current liabilities, borrowings of RM6,068 million in year 2008 and RM7,068 million in year 2009 (Airasia Berhad, 2010). Key symmetrys (YE 31 Dec) 2008 2009 revenue enhancement growth (%) n/a 8. 4 EBITDA growth (%) n/a 86. Pretax margins (%) (15. 3) 16. 8 Net profit margins (%) (15. 4) 16. 3 Interest cover (x) 1. 6 2. 1 immobile tax rate (%) n/a 3. Net dividend payout (%) n/a 0. 0 Debtors turnover (days) 91 88 Stock turnover (days) 4 3 Creditors turnover (days) 149 127 AdaptedFrom Chew. B, 2010. Comparing with Malaysia Airlines, Malaysia Airlines have more revenue compare with Airasia but their profit after tax are around the self corresponding(prenominal) human body, which are RM493 million in year 2009, RM245 million in year 2008, RM853 million in year 2007, RM133 mill ion loss in year 2006 and RM1,251 million lose in year 2005. Although Airasia revenue lower than Malaysia Airlines around RM8,442 million but Airasia potty plus the profit handle Malaysia Airlines. In conclusion, the strategies used by Airasia are very successful (Malaysia Airlines, 2010).Compare Airasia with Malaysia airlines 2009 Airasia Malaysia Airlines Differences in % tax revenue RM3,133 million RM11,574 million 269. 42% Net profit after tax RM506 million RM493 million -2. 57% Passengers carried 14,253 million 6,549 million -54. 5% provide Expenses RM927 million RM3,497 million 277. 24% Net Current Asset RM511 million RM3,023 million 491. 59% Balance Sheet Ratio for year 2009 Ratio Formula Airasia Malaysia Airlines Current CA/CL 1. 0. 86 Quick (Cash+AR)/CL 0. 86 0. 74 Net Margin NPAT/Sales 16. 2 0. 04 direct Margin Operating profit/Sales 0. 15 -0. 06 Return On Assets NPAT/T. Assets 0. 04 0. 6 Return On Investment NPAT/Net Worth 0. 19 0. 66 The factors contri buting to e- enable SCM in Airasia The invention of profits has greatly influence the traditional supplement strand charge in the world. umpteen confederation authorizedize the benefits of apply IT into their come forth strand management. cyberspace has provided a great opportunity for company to section and access information immediate and add-on the productivity and efficiency of the bring out mountain range performance.former(a) than that, e-enabled SCM lead to guess the cost and add extra value for the company. Those enabling software like CRM, ERP and EDI which rotter jock in b otherwise onward motion on the desegregation with its buyers, sellers, suppliers and partners. Rapid changing of technology forcing the companies must plan to change their transmission line strategy in tell to visualise consumer look and accomplish their call for. Due to the inefficiencies of the traditional put up string management, many company distinct to studyting e-S CM are aim to shit manage their supply chemical kitchen range escape to ensure it is operating(a) smoothly.E-SCM is taking advantage in coordinate the cooperation with suppliers. E-commerce throw in the towel the seller promote and sell their products and services by means of the internet. Some of the buyers now prefer to search, buy, compare or book the products and services on the internet. Since the consumer behavior has changed, all of the companies are forcing to change their supply chain fermentes to adopt the parvenue channel to meet the guest expectations. so, the supply chain shoots to be different with the traditional channel.Airasia stooge provide nodes booking shoot shred via internet (Gimenez et al. , 2003). Information sharing is a crucial part in supply chain management. Traditional supply chain management provided limit information flow among the employees, nodes or the suppliers. That is higher cost and time go through with(predicate) to get the information and it will cause the company gouget nock a good decision. Therefore, internet provided a chance for company to share and access the real time information among its partners to ensure impressive.Extranet tail end build a network to link the company and the partners together and given(p) to share and access information faster. Therefore, company clear easily get the urgent information instantly in low cost. It can make a big improvement in enhancing the integration company with its suppliers. Other than that, an intranet can send and accept the documents through electronic media among the firms. In addition, internet is a high speed medium where can reach global. Internet can benefactor the connection connect with their foreign partners in a minute for business sector information, discussion and proceed to procurement decision.It can hump as e-procurement, example, Airasia can sanctify the air bus spare part via internet (Gimenez et al. , 2003). Knowledge shar ing, in the infobase management is not only expand precious information, there are likewise including proviso, analyze the result and ecstasy and transform into meaningful information and share with business partners . Company can get the data with just a few clicks and help them to make a check decision for their business. That is providing big advantages to the company where is cost redeeming(a) and improve the efficiency of their business decision.Example, Airasia can collect their sales data and analyze it into meaningful information in assign to respond to guest ineluctably and demands and react quickly to the market. It can also use to call the company sales, so, the company can make decision to improve their sales (Gimenez et al. , 2003). atomic number 53 of the factors e-enabled supply chain management is it can design an stampive supply chain to strive for hard-hitting collaboration and integration with suppliers and customers, outgrowth the competitive advan tages in the intense competition environment, improve the working(a) address, and gain a long-term benefit.Even though internet is an inexpensive and faster way to pose the useful information to assist the company to improve the supply chain management, company has to design a good supply chain structure to make the supply chain flow more in force(p). The better of the supply chain design, the more benefits company can gain from it. main(prenominal) competition today has forcing the company to do better always in order to survive in the market. Internet has whirling the company a chance to design a better supply chain to enhance its supply chain performance by adding revolutionary functions to achieve the company objectives (Gimenez et al. 2003). Implementation plans to strategize an e-SCM In competitive environment today, internet technology provided strong tools to strengthen the companys electronic supply chain management. If the company can carry out an appropriate implem ent planning, it would lead to curb a competitive edge. A poor planning may cause supply chain produce the poor result like low quality, poor services and higher cost. Initially, the company must clarify the supply chain goals to indentify which goals are going to set to get best effect in the business.Competitive level, distribution, production, financial and customers needs need to be associate to construe the new-sprung(prenominal) supply chain able to achieve company goals and fulfill customers need. Outsourcing can be more suitable because operating a new supply chain is costly. After that, conduct a supply chain readiness audit to analyze the business. To understand the existing company core out and capabilities priority. How the company is going to respond with high demand, global reach? It much(prenominal) as an evaluation of business forrader a new supply chain is implementing.Next meter is exploitation a business case, the top management should develop a business case that understands electronic supply chain can increase the performances of business and it would improve the customer satisfaction, supplier integration and cost effectiveness. To make a better business case can help in achieve companys mission and objectives. tail step is establishing a supply chain coordination unit. Establish a estimable e-SCM team to implement and coordinate the supply chain.The team is to make sure the supply chain is operating under a smoothness condition, reduce the cost, facilitate business performance and increase customer satisfaction. Training has to give out to improve the SCM team skill, knowledge and leadership (Kalakota et al, 2001). Next, begin supplier integration. Business partners are the important part in the supply chain to help the company to achieve their new business projects or objectives. electronic supply chain will be inefficient if without any supplier support.Develop a performance score card to evaluate the performance of new supp ly chain. Reengineering might need when there have problems occur or something is going wrong. Penalties and performance reward may place into the measurement as incentives to drive e-SCM efficiency. The following step is always educate, educate, educate the members who are bear upon in the supply chain management by provide training, education, mentoring to the members to get the newest knowledge and information to perform sound. At the final step, company has to read to manage failure.Not every dodge will always implementing smoothly, failure will lead into inefficiencies and influence the company effortless operations. Thus, company must able to cope with the failure, understand the problem and learn from the failure and make improvement on it to prevent the problems occur again (Kalakota et al, 2001). Airasia is using Low hail Carrier (LCC) business strategy to operate their business and transform supply chain management to electronic. Airsia is going to adopt several gove rnances to support the e-SCM to operate smoothly.All of the ashess are operating to achieve the business goals by cost effective of the operation (ERP and CRS) and maximize the revenue (YMS). Airasia attempts to integrate information technology with current supply chain management to carry out some planning and strategy that is implementing efficaciously to support and develop their business to coordinate their daily operation, integration and communication (Kho, 2005 and Wong, 2009). Advanced homework and Scheduling (APS) is introduced to improve the indispensable operational process and achieving low cost business strategy.In airline industry, heterogeneous network, huge daily operation and a lots of external factor that will influence the operational performance like bad weather. In order to be successfully implementing a good supply chain, Airasia can use APS to become a core of their supply chain to trade with the customer and supplier requirements. A series of effective functions will provide by APS to support Airasia in their daily operational activities. There are supplier portals, it will provide some useful information for Airasia to help them avoid from any agreement error much(prenominal) as order processing.APS also assist in take stock planning and maintenance management. APS is aptitude to integrate Airasia, its maintenance supplier, GE aviation, and other suppliers to manage the inventory such as spare part to check choice availability and place order priority to prevent out of maintenance stock and set a maintenance schedule to ensure the aircraft is in a sentry duty condition all the time. Route profitability analysis is conducting to set and plan an efficient route in order to fulfill cost and increase revenue (Kho, 2005 and Wong, 2009).Computer second-stringer System (CRS) is an integrate web- base inventory and reservation system including call center, airport departure control function, internet and others. Airasia is goin g to use e-commerce to facilitate the online reservation and purchase e-ticket process. Intermediary had eliminated in this process. Airasia will offer 24 hours per day and 7 days a week for real time transaction that enable local and global customers to book the ticket anytime. The system software will provide data in online booking and categorize stored, update automatically and help in scheduling race activities.This is also cost effective by less depend on human resource for data entry. Therefore, Airasia can fully utilize the forthcoming of vast booking information where bring customers to the website to minimize the unsold seat and maximize their sales. The comprehensive information is uncommitted by the supply chain system on the internet for customer to view, search and compare with others companies before they decide to purchase in terms of service, damage or feather time.CRS has provided well-provided for the company to maximize their sales to meet customers needs (K ho et al, 2005 and Wong, 2009). Beside that, Airasia had decided to acquire a Wireless Delivery System (WDS) to provide convenient to the customer so they able to book ticket through their mobile phone mend increasing Airasia sales (Kho et al, 2005 and Wong, 2009). ERP is application software integrated with its company system that helps the company to manage the operational activities effectively and efficiency.Airasia can implement ERP system which is a system that will focus on company daily operations and help in save operational cost, maintain integrity, speed up reporting and increase efficiency of the operational performance and better manage its electronic supply chain (Kho et al, 2005 and Wong, 2009). admit Revenue System (YMS) used to aid in understand, react and evaluate the buyer behavior to enhance the company revenue. The system can effectively result in optimize the Airasias flight ticket terms and maximize the company expected revenue. Example, seat price is avai lable by different level in the different time.A ticket booking at a later time may be charge a higher price than an earlier booking. Other than that, the system will help the company adjust the ticket price when there have high demand in that destination. YMS is obtaining advantages in charge a lower price to maximize the revenue and adjust the price into higher price when the altitude time through the demand forecast. In this case, Airasia can fully understand their consumer behavior and implementing the effective strategy to achieve their revenue objectives (Kho et al, 2005 and Wong, 2009). ECRM is a system software use to build a long term kinship with the customers.Many companies are plan to cut customer service cost while improve customer satisfaction. ECRM is providing extra advantages compare with offline CRM. Airasia will use ECRM to manage the complaints from the customers through the call center and solve the customer problem and skepticism by FAQs with further custome r service support line on the Airasia homepage. too that, ECRM also provide convenience for customer to check in through the internet and mobile phone. ECRM can help the Airasia indentify the frequent customer and reward them through reward program like frequently beak program.Email notification may be send to the customers to inform them close to the advance information (Wong, 2009). Environmental factors that may affect the implementation of e-SCM in AirAsia impertinent factors Sociological Social environment includes the cultures, customs, mores, values and demographic characteristic of the indian lodge in which an placement functions. Social processes also determine the goods and services, as well as the standards of business conduct, that a society is likely to value and accept. (Smith, 2010) In Malaysia, most of the population is educated and 65. % of Malaysians use internet (Internet World Statistic, 2010). This eases the process of implement e-SCM. When suppliers, cus tomers and employees of Airasia are educated and able to operate a computer, it will be very easy for them to understand the concept of e-SCM, accept and use it. Therefore, the learning cost of Airasias e-SCM can be lower down. However, Airasias supplier have different values in implementing e-SCM. They may defy to share actual data with other companies due to need of affirm (Scalet, 2001). This caused a barrier while implementing e-SCM.Political The political environment reflects the race betwixt business and government, usually in the form of government regulation of business (Smith, 2010). Political factors such as labour laws, tax, trade policy, and political stableness defines what Airasia can and cannot do while implementing e-SCM. During year 2009, the Prime Minister, Abdullah Badawi was set to step down in March 2009. This caused political uncertainty. This issue may lead to difficulties in setting rules or changing any structure in Airasia in order to implement e-SCM.B esides, Airasia also operate in other countries, many laws will be different compare to Malaysia. So Airasia will face another issue while implement e-SCM. economical Economic environment refers to relevant conditions that exist in the economic system in which a company operates. Those factors in economic environment are kindle rates, exchange rate, economic growth, inflation rate and others (Smith, 2010). For example, the rising of oil and input of low-cost competitors like Firefly will affect Airasias operating cost.They will influence the profits and availability of funds and cause insinuation on implementation of e-SCM (Yahoo Answer, 2010). When Airasia is lack of fund, there will also lack of employees training cost on e-SCM and implementation cost. A siamese connection respective(prenominal) holds 1%, Airasia holds 49% and Shin Corporation hold 50% of Thai Airasia. Shin Corporation was owned by previous Thailand prime rector and it has strong financial strength to suppor t Airasia to implement technology such as e-SCM (International Transport Workers Federation, 2007). TechnologicalTechnological environment includes human knowledge, work methods, physical equipment, electronics and telecom and various processing systems which used to perform business activities. (Wong, 2009) Technology immediately helps a lot in e-SCM. The main technology that affects implementation of e-SCM is Internet. It is serving as a medium for information access, transmission and sharing among suppliers, Airasia and its customers. by from that, with the aids of other technologies like intranet, extranet, e-mail, online conferencing, and others, all the supply chain partners ofAirasia can easily communicate and collaborate. Speed of information flow faster through Airasia to its customers or supplier. The other technology platform is Enterprise imaging be after System (ERP) and Electronic Data Interchange (EDI). These technologies have stimulated implementation of e-SCM. Internal factors Human Resource When Airasia implement e-SCM strategy, every process, goal or system must be carry out by employees. Thus Airasia need to provide training to its employee, development, restructure and compensate in order to support e-SCM process. However, some employees may resist to change.Airasia must be gift or compensate them so that implementation goes smoothly (Lancaster, 2006). Financial Resource Financial is critical factors that affect e-SCM. Without enough funds and capital, e-SCM cannot be implementing because e-SCM needs huge fund to carry out. Although Airasia is suffering loss during year 2009, Airasia can raise its fund to implement e-SCM by selling its share or capital restructure (Whitley, 2009). Physical Resource The infrastructure needed to be carry out e-SCM are corporate portals, workflow system and tools, EDI, intranet, extranet and others groupware tools.Airasia should gets all infrastructure ready to implement e-SCM. Organizational structure A shape organization structure can easier to accept, adapt and implement new technologies or strategies (Pearlson, 2006). However, board of directors of AirAsia is too narrow, decision making will be too shallow (Onwutalobi, 2008). When implement e-SCM, decision making need to be fast, effective and efficient. Area that e-SCM help most in Airasia E-SCM helps Airasia a lot in this airline competitive industry and one of the ost significant advantages are trim manifest preparation time, reduced paperwork handling time, reduced time in communicating with up- and down-stream intermodal partners and reduced load transference times between intermodal partners One of the significant e-SCM for an aviation company is the Computer Reservation System (CRS). Online sales through this system captured more than 50 percent of Airasias revenue (Corporate website, 2005). The system can also detect the frequent flyers and rewards them accordingly to fabricate higher customer retention rate and lea d to a better stage of relationship marketing with the customers.The Customer Relationship Management (CRM) process provides the structure for how relationship with the customer is develop and maintained (Croxton et al. , 2001). CRM can be a system connect together with the CRS in order to obtain the customer description and reservation description to provide them with full range of customer service including the FAQ questions in it. Besides that, Distributed Database System (DDS) is also a core division in this successful Airasia in the airline industry. If Airasia be to expand to a wider range of market share, a geographically scatter database can be used to plan its flight schedule carefully.Another element is that Wireless Delivery System (WDS) for the ease of their customers to browse company website detail and place their reservation using their mobile phone. Airasia practices online booking if the customers tend to save money for lower price when they purchase their tick et online. The complexity of managing the conciliative price can be carrying out using Yield Revenue System (YRS). Airasia can price accordingly by referring to the demand of the flight and pick the best price for Airasias yield revenue.Demand driven resource planning and employee scheduling is crucial to the success of all aviation service providers and Advanced Planning and Scheduling (APS) can help Airasia in the propellent airline environment. Crew scheduling, fleet management, gate and check-in desk planning and the country crew planning is a crucial part for the company to get across the increasing operating cost. Benefits of e-SCM to AirAsia, suppliers, and consumers The common model of e-commerce supply chain system transaction view is shown as below company, suppliers and consumers are all linked throughout the whole transaction.So, as Airasia applies e-SCM, besides benefit to Airasia, it also benefits to suppliers and consumers (Hultkrantz et al. , 2001). pic Company A irasia can use the computer network to operate its businesses as one of the e-SCM strategies. Airasias can introduce booking air ticket through the online website which is assisted Air Asia transformed towards a more well-established communication media which is available 24/7. As the forecast, there will about 40% broad(a) revenue can be gain via the Internet legal proceeding.It is because of Airasia can take the advantage of B2B marketplaces to forecast the demand for their services and, using differentiation set strategy to attract more customers and gain more market share by implementing the Yield Revenue System (YMS). In addition, the e-CRM in e-SCM allows Airasia to provide personalized service and one-to-one relationships between merchants and consumers. The ERP system had speed up reporting and increase efficiency of the operational performance which will without delay increase the satisfaction of customers towards the services quality provided by Airasia.At the end, Air asia can enhancing relationship with both existing and potential customers and also the suppliers since the communication became a impartial task. Besides that, Airasia can cost saving through the Advanced Planning and Scheduling (APS) which improved the internal operational process and achieving low cost business strategy. The company can also saves on the cost to operating and managing the bricks and mortar outlets and able to reach national markets without any efforts on developing a physical distribution network.Then, Airasia can reduce the cost of sales commission of the middleman, which is the travel agent. So, as a conclusion, if Airasia adopted e-SCM, the company can streamline and restructure the services provided to its customers, developing new markets, and thus creating innovative business opportunities to its customers and suppliers. Suppliers pic Due to the suppliers view of e-commerce supply chain, they concern on the process of buy and fulfillment, ship and logistic s and fleet management (Hultkrantz et al. , 2001).The suppliers of Airasia can strengthen their forecasting ability, meet and exceed Airasias demands by fling the right promotion of products and services at the right time, as well as align their production schedules based on their manufacturing capacity and inventory management is improved because of the efficient information exchange, inventory visibility and transactions through the EDI system. So, the supplier can minimize monastic order, handling and other costs and avoid from the bull-whip effect which may cause them profit loss from the spare of the stocks or failed to gain more profit because of the shortage of stocks.In addition, the supplier can increase its reputation by meeting the needs and demands from the customers. Consumers The customers view point towards the e-SCM can be represented simply, as the figure below (Hultkrantz et al. , 2001). pic The e-SCM delivers value across Airasia customers supply chain allow cus tomers make quicker and better decisions because the information about inventory visibility and transactions.Airasia customers can compare the pricing and the quality of services provided by Airasia and the others competitors on Internet. Besides that, the e-SCM automating the e-procurement function, simplified purchasing processes which benefits Airasia in lower their transaction costs and overhead. Since the expenses or costs of Airasia reduced, they may able to lower down the pricing but maintaining the same quality of services, which is also considered as benefit to customers. Customers get the same quality of services but with a lower pay.Through Computer Reservation System (CRS), Airasia can launch the ticketless system which the customer of Airasia has the opportunity in doing the booking and purchasing process at anytime, anywhere as customer preferences. Once the customer booking completed, Airasia will provide customer with a program which include customer booking number, payment and travel details. So, the ordering and settlement process had simplified and more convenient to customers during they check in by just mentioning the booking number and must present designation card (IC) or passport of customer for identification purposes.Recommendation and improvement on e-SCM The constantly changing external environments which faced by the organization or company nowadays cause the Airasia have to always ensure that its own internal resources and capabilities are sufficient enough to meet or exceed the needs of the external environment. So, the e-SCM system that Airasia executed need to always keep up-to-date to meet the needs of the external environments. Besides that, in order to survive in the air flight services industry, Airasia also need to always undertake an analysis about their external and internal environment.The e-SCM system plays an important role in this process because the visible of information about the supplier side and customers side is useful in the analysis. So, e-SCM system needs to be improved by reducing the degree of error happened and increase the accuracy and reliability of the data flow within the supply chain flow. Since Airasia still receiving a lot complaint from customers on their service, such as the flight delays, or being charged for a lot of things and also customers is not allowed to change flight or get any pay back from Airasia if they couldnt make it.So, Airasia can improve the e-SCM through the Balance tot Card (BSC) which helps in the improvement of the internal and external communications, and monitor the organization performance based on financial perspective, internal business process perspective, learning and growth perspective and also customer perspective. So, by meter the quality management and customer satisfaction index, Airasia could further improve the e-SCM based on the feedbacks from the customers and the measurement of the performance. On the other hand, Airasia can also f urther improve the e-SCM in the collaboration area.There are several unexpected events are converging. Therefore, company can increases the number of platforms, packages and more advanced technologies to do the filtering tasks which only permit meaningful collaboration from sharing data and information, to developing customer reward programs and joint forecasts.ReferencesThe Breaking News (2002), AirAsia GE Engine Services Sign Major Engine Maintenance Agreement Worth Over US$20 Million, Breaking Travel News. Available from http//www. breakingtravelnews. com/news/ obligate/btn40003248Accessed 3 July 2010 Airasia (2010).