At Versilia, we have a 360° approach and expertise in everything related to buy onboard.
We have developed industry leading cost optimisation processes and revenue improvement techniques that maximise the bottom line.
Here at Versilia we have distinguished ourselves from others with our proven experience in starting a BoB program and opening new units in record time. We offer flexible, agile solutions for airlines to start their retail operations and sustain them, ensuring it remains cost-efficient. For example, we setup a catering unit from scratch in a matter of weeks to support our airline partner, JetSmart Argentina. We reduced the annual cost of last mile catering by $250,000 USD, resulting in a happy airline and crew, and most importantly, passengers who enjoyed an enhanced onboard experience.
The pandemic and its impact on travel means that we all have to focus on both health & safety and cash flow, by implementing new ways of doing things.
For example, we reacted to lower load factors in the wake of COVID-19 by optimising the barset to allow it to operate over 4 days, reducing costs by 70%.
We implemented e–menu cards that passengers can download via a QR code and deployed advances in payment technology to handle card only transactions.
We constantly evaluate our processes and cost base to find opportunities to optimise performance whilst reducing costs. Our data analysis and retail experience allow us to react quickly to opportunities to protect and enhance profit margins. For example, by changing our promotion strategy to reflect price increases we were able to increase SPH and improve margin. Our digital menu card implementation not only saves money, but is better for the environment and allows us to change prices quickly to market needs.
For example, after go-live with one airline customer, we analysed processes, resources, and the layout of the catering unit to make packing and handling as cost effective as possible. This involved moving interior walls, building workstations, introducing processes for organising, moving stock and optimising the packing times and staff required to build the minimum amount of bar sets. This reduced staff requirements by 1.5 FTE and resulted in a saving in stock holding of circa 15%.
Shrinkage can be a substantial cost for any retail business. We have successfully implemented several strategies to address the main drivers of shrinkage with proven success.
Using the latest AI technology and modelling tools, we can continually update the loading ratio on fresh food to reduce wastage whilst maintaining available ratios for each journey.
This has resulted in an 8% improvement in category margins.
During COVID-19, we reacted quickly to negotiate prices and payment terms with suppliers and reviewed processes to ensure they are both compliant and cost effective. The Versilia team were able to lower costs and preserve cashflow to enable the business to flourish in difficult circumstances.
Amitkumar Jethwa, Finance Manager
Start up of JetSmart Argentina and in a limited time period and no established last mile operation available.