Managing partner relationships within global supply chains of cargo airlines to reach sustainability goals

Abstract

Cargo airlines are increasingly pressured to enhance sustainability across all aspects of their operations, including the ground handling services managed by global partners. These operations are integral to reducing the overall environmental impact of the aviation industry, necessitating effective Partner Relationship Management (PRM) that incorporates sustainability objectives.

Managing sustainability across a diverse and global network of partners presents significant challenges, as these partners vary widely in their willingness and capability to implement sustainable practices. The complexity of this task is compounded by the lack of a structured approach to evaluate and guide these partners toward achieving sustainability goals. The central question addressed in this research is: ”How can a Decision Support System (DSS) be developed to guide Partner Relationship Management (PRM) for the operations of existing partners of cargo airlines to achieve sustainability goals?”

To tackle this issue, a DSS was developed, utilising Multi-Criteria Decision Making (MCDM) with the Best-Worst Method (BWM). The DSS was applied to KLM Cargo’s operations, focusing on segmenting partners based on their capabilities and willingness to meet sustainability goals, specifically zero emissions and zero waste. This segmentation enabled the creation of tailored strategies for each partner segment.

The DSS effectively categorised partners and identified key trends, such as the performance of GHAs operating multiple outstations and the area in which the outstations are operating. This categorisation facilitated the development of a step-by-step strategy, including specified components of strategies for each segment and the introduction of a checklist to assess the current sustainability practices of each partner. These tools proved essential for guiding PRM toward the achievement of sustainability goals.

This research offers a robust framework for sustainability management that can be generalised across the cargo airline industry and potentially other sectors. Future research should focus on validating the DSS in different contexts, refining the segmentation techniques, and further developing the checklist to ensure comprehensive sustainability assessments and strategy development across diverse operational environments.