Overview
A popular budget airline known for its extensive European network and competitive fares was facing increasing operational and supply chain pressures after transitioning to a new catering partner. With a high volume of passenger turnover and a rapidly evolving marketing strategy, their supply needs became increasingly complex and unpredictable.
The Challenge
The airline found itself reacting to volatility with a “just-in-case” approach to procurement rather than a strategic “just-in-time” model. The result was frequent panic buying, overstretched internal teams, and reliance on expensive substitute stock sourced locally at short notice. This led to significant overstocking, with dried store goods held in third-party logistics (3PL) warehouses amounting to between £3.5 million and £11 million. The burden of excess inventory contributed to negative working capital, tying up vital cash and straining operational efficiency.
The Solution
By partnering with GM Packaging, the airline gained access to agile supply chain intelligence, strategic inventory planning, and scalable packaging solutions tailored to their volatile environment. GM Packaging introduced data-driven demand forecasting and streamlined stock management processes, significantly reducing reliance on 3PL storage and costly emergency procurement. This freed up working capital, stabilised team workloads, and transitioned the airline toward a more sustainable, responsive supply chain — ultimately turning packaging from a pain point into a point of confidence.
