Question 2 SIA launches service to transport pharmaceutical cargo safely

Singapore Airlines (SIA) has launched a new service, Thrucool, for transporting valuable pharmaceutical cargo quickly and under strict temperature control. The Thrucool service will offer dedicated cold chain services to safeguard the integrity of pharmaceutical and healthcare shipments during air transportation.

Such services include priority uplift and handling, quick ramp transfers at airports, cold room facilities, and thermal blankets and covers that provide insulation from external factors. Customers can choose to place their shipments in temperature-controlled containers and track their location during shipping. Thrucool offers customers the assurance that their cargo will receive the best care not only on flights, but also on the ground during transit.

SIA, in partnership with air terminal operators Sats, Cargologic and Qantas Freight, has also launched an IATA CEIV Pharma (International Air Transport Association's Centre of Excellence for Independent Validators in Pharmaceutical Logistics) certificated "quality corridor" along the Zurich-Singapore-Sydney route as an initial offering. The quality corridor will help to preserve product integrity in cold chain handling on the ground and in the air.

SIA is the first in the Asia-Pacific region to be awarded the Iata CEIV Pharma certification, as it complies with the standards for safety, care and efficiency in the transportation of pharmaceutical and healthcare products. SIA will continue to work with other industry partners to expand its network of quality corridors to other parts of the world. This will help in the promotion of integrity of pharmaceutical products in their journey across key markets.

(Adapted for academic purposes. SIA launches service to transport pharmaceutical cargo safely, by Ng Huiwen, The Straits Times, 21 September 2018, page B4)

(a) Examinetwo (2)likely benefits for SIA in its strategic alliance with air terminal operators Sats, Cargologic and Qantas Freight to launch a "quality corridor" along the Zurich-Singapore-Sydney route for its Thrucool service. (8 marks)

(b) SIA is seeking to work with industry partners to expand its Thrucool service to more destinations in the world. Examinethree (3)most relevant micro (market- specific) considerations that SIA must take into account before deciding to launch its service in a particular international market. (12 marks)

(c) Explain the concept of value creation and its implication on the members in a value chain. Examine the key value chain activity performed by SIA in its offering of the Thrucool service to customers and show how it can offer competitive advantage to exporters of healthcare and pharmaceutical shipments. (10 marks)