Airline Catering Business Management Systems

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TFC vs AFC

Digital Integration

TFC - Food Cost Logistics

• What is “Digital Integration”

• The Business Flow• The Key Elements• The Food Chain Process• AFC – Actual Food Cost

• Food Cost Variance

• Front / Back Office Systems

TFC – Not just a tool but a Business Concept

• TFC – Theoretical Food Cost

What is Digital Integration

In-flite Manager embraces digital integration by placing its “Front-Office” systems online, providing innovative management tools and synchronized concepts, to aid management and staff to seamlessly integrate, laying communication standards between the caterer and its clients.

Its true sense, is when electronic mechanisms, known as hardware together with software, are combined, to provide a seamless platform on which business information can be securely stored and readily available, linking the organizations departments forming one virtual location.

These centralized methods permit the caterer to be continuously online, and monitor its business needs.

Front / Back Office Systems

Both the Back-Office and the Front-Office systems, are a “must have” in the running of any business, but both portray entirely different objectives, and are addressed as follows:-

The Front-Office system, on the other, is individualistic and proprietary, as its role subsists in addressing the business objectives and its fundamentals known as the “Business Flow”, yet addressing TFC – Theoretical Food Cost and its applied logistics.

The Back-Office system responsible for AFC – Actual Food Cost, plays a leading and supportive role, to adhering to local, administrative and legislative requirements, exposing the Business results, and its Financial standings, as required by law, and can be considered as a common entity within any business practice.

These two when combined, create the ultimate solution, in pioneering constant success.

The Business FlowThe Business flow, illustrates the core of the business,

revealing the business true identity, whilst playing a lead role, as it remains the driving force to both the business costs, and its sales.

In-flite Manager’s Front-Office solutions, not only provides departments, personalized tools to assist both management and staff, in managing there daily tasks, but also establishes a synchronized methodological approach, when applying the Systemic TFC Concept, geared to manage the business “Material Planning” and its applied Usage.

In-flite Manager accommodates unique tools, allowing Airline Caterers, to address its Customers requirements, one of many stands out, Customer online Menu Costing, and Customer Contractual flight planned schedules.

These two components, contribute to the well being of the customer, yet simultaneously, laying down the “Key Elements” to successful planning aiding Cost Reduction.

The Key Elements

• Customer Contractual Menus (known as Intelligent Menus).

• Customer contracted Flight Schedules.• Customer Load Factors and its operating trends.

The key elements to mastering TFC – Theoretical Food Cost, can only be reached, upon the Caterer achieving “Digital Integration”.

This “Digital Integration” not only serves as a backbone in addressing the Caterers business needs, but also stimulates your customer response, preparing the fundamentals to successful TFC.

These key elements being:-

These elements, serve management in monitoring there daily Food Cost and streamlines the “Food Chain Process”, when conceptually applied producing:-

• Material Purchase Forecast. • Material Requisitioning / Prod. Prep.

Thus being the only proven mechanism to reduce costs dramatically, directly stimulating business Profits.

The Food Chain Process

The Food Chain Process, is the pre-set path, where requisitioned materials, leave the stores area, and commence there transformation cycle in the preparation and productive areas, terminating there cycle in the tray assembly area, then neatly packaged and prepared for Customer hand-over.

The “Key Elements” triggers this chain of events, initiating its interaction with the pre-determined business flow.

In-flite Manager orchestrates a leading role, creating chemistry between the Food Chain Process and the Caterers business flow, allowing always room for constant improvement, encouraging constant cost reduction.

The TFC concept and its logistics, is applied here, as it transposes the caterers legitimate material standing, contemplating all materials and yields.

AFC – Actual Food CostAFC – Actual Food Cost, Represents the Caterers, Total Cost of goods PHYSICALLY

Issued / Consumed.

Daily / Monthly AFC Result :-

AFC together with Sales, informs the Airline Caterer of its general Food Cost standing, yet provides no indication to the following: -• being either Above or Below the Potential Guidelines.• AFC by Customer

ALL Customers

AFC vs. SALES = 00.0%

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TFC – Theoretical Food CostTFC – Theoretical Food Cost and its applied Logistics, Represents the Potential Food Cost rendered to each

Customer, based on the agreed services provided and materials used to complete the customer flight, theoretical consumptions based on agreed protocols between caterer and client on the following:-

• Customer Service / Menu Specifications (Intelligent Menus)• Customer Flight Schedules and PAX Boarded (Goods

Boarded)• Customer Flight Delivery / Billing Documents (Sales /

Revenue)

These same mechanisms are also used to determine the following :-

• Material Forecast / Purchase Planner ( short + long term )• Daily Internal Material Requirements

Single Customer ALL Customers

TFC vs. SALES = 00.0%

TFC vs. SALES = 00.0%

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Daily / Monthly TFC Result :-

TFC – SALES

• TFC vs SALES (ALL Customer)

• TFC vs SALES (Single Customer)

Caterers Food Cost Variance

AFC TFC Variance

33,000.00 30,000.00 3000.00

Future Cost Analysis :-

AFC N/A Variance

33,000.00 0.00 0.00AFC TFC Sales

33,000.00 30,000.00 100,000.00

33% 30% 100%

Assumed Present Cost Analysis :-

IN-FLITE MANAGER Cost / Sales Analysis :-

Food Cost Guidelines (Variance)

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TFC

TFC – by Dept. and by Cust.

Digital Integration• Introduces a Common IT Platform• Lays Standards and Disciplined Work Procedures• Facilitates Data Distribution within the Work-force• Provides Instant Accurate Information on-line when needed• Enriches the work-force with State-of-the-Art working

Mechanisms

Personnel Integration• Enhances Employees Awareness to the Business Flow• Stimulates Inter-Department Communication• Encourages Team Work • Leverages Personnel knowledge to Business and its

concepts • Warrants Success to both Caterer and its Clients

Digital Integration Benefits