Case Study

4PL Logistics solution to solve airline's challenges

Virgin Atlantic was founded by entrepreneur Sir Richard Branson in 1984, with innovation and amazing customer service at its core. In 2023, Virgin Atlantic was voted Britain’s only Global Five Star Airline by APEX for the seventh year running in the Official Airline Ratings. Headquartered in London, it employs more than 7,500 people worldwide, flying customers to 30 destinations across four continents throughout the year.  

4PL Logistics Services - Supplier Management

CHALLENGE

Virgin Atlantic was looking for a strategic 4PL provider to support its aspiration of being the airline most loved by their customers. Specifically, the company sought out a supplier to manage and forecast Inflight services, Airport Stationary and Clubhouse, alongside operating a lean warehousing and logistics operation across their global network.

4PL Control Tower - Adding Value

SOLUTION

SEKO implemented a robust 4PL control tower structure, enabling the Virgin Atlantic team to effectively manage the movement of goods throughout the supply chain. To ensure the company was in the best hands, SEKO appointed a team of subject matter experts with the knowledge and understanding of industry trends and changes in the market. This group of subject matter experts allowed SEKO to maximize Virgin Atlantic’s savings.

SEKO also streamlined Virgin Atlantic’s processes by installing technology, such as a demand and forecasting tool. Utilizing this tool, SEKO was able to classify items by demand pattern, create forecasting and demand plans, calculate order parameters, and optimize orders.

To provide live visibility of stock on hand and dispatch information, from ‘pick in progress’ to ‘dispatch’, SEKO fully integrated its SEKO 360 Warehouse Management system with Virgin Atlantic.

Utilizing the new data available, SEKO moved to a proactive vs. reactive model. The 4PL control tower team took over the management of orders, proactively preventing overstock or understock, which can require costly returns or emergency orders.

Dedicated Control Tower Management Team

RESULT

250,000 square-foot UK centralized warehouse, owned by SEKO with a dedicated team. This warehouse provides a secure site and the relevant bond license to handle the movement of alcohol, along with all other onboard consumables and equipment. Dedicated control tower management team with over 30 years experience in airline supply chain, who are committed to providing the best service available possible to Virgin Atlantic.

The team responds quickly to accommodate changes in the market, new routes being added to Virgin’s network, aircraft changes, and changes to on-board service provisions, all with a smile!

With over 150 offices in more than 60 countries, SEKO has the network, relationships, and local knowledge in place to manage inbound and outbound deliveries within Virgin’s supply chain – FOB, Ex-Works or DDP. Ordering less frequently with better data availability enables cost savings at every step.​

ANDREW SMITH
Senior Manager, Inflight Services Product Supply Chain at Virgin Atlantic
"We’re delighted to be continuing our business relationship with SEKO Logistics through 2025. Our brand values, high service standards and quest for continuous improvements and innovation are aligned, ensuring that we both remain customer and service focused."

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