quote:Originally posted by pjh
What's 'The House' ?
The House is a joint-venture agency set up between Virgin Atlantic and LSG SkyChefs (huge airline caterer, part of the Lufthansa Group, for those who don't know) to manage the Virgin Atlantic In-Flight Service element product - this covers flight catering (right down to the procurement of ingredents and ready-made items, and getting them delivered to the flight kitchens), aircraft cleaning, duty free, in-flight cabin consumables (pillows, blankets, headsets, sleepsuits, amenity kits), maintenance of galley equipment, and, I believe, procurement and provision of IFE content.
Previously, VAA used to manage all these functions in house, letting seperate contracts to various suppliers of services, such as Gategourmet, LSG and others for flight catering, Fernley (now part of IAS) for aircraft cleaning, etc.
The House was set-up during VAA's outsourcing exercise in the early 2000's. The relevant departments inside VAA were downsized or closed down entirely and transferred (with some of their staff) into The House, along with staff which came from LSG, plus any new hires.
VAA's role is to construct product specifications for The House to execute on, under a contractual framework. This is a two-way process, with The House able to feed back into the specification development.
The role of The House is to do all the 'leg work' in managing suppliers and all elements of the supply chain, and be able to draw on both parent organisations' expertise to be able to deliver this.
In theory, this was intended to free VAA from doing all the leg work, and employing specialists in each area, and release the VAA in-flight management staff to be more creative.
VAA only has a single contract with The House, and no direct contracts with (or direct control over) the various suppliers and contractors who deliver the service.
It's common to contract out these things, but it's not that usual to see this sort of abstraction layer between the purchaser (the airline) and the various suppliers of services.
My opinion, having experienced similar situations in my current line of work, is that this arrangement adds a damaging level of indirection to the customer/supplier relationship, results in a loss of control for the buyer of the product or service, and a reduction in accountability on the part of the supplier.
Mike