Supply Chain

Activity #1
1. Explain supply chain management and its benefits.

2. Describe the different features of the supply chain.
3. Enumerate and describe the different functions of the supply chain.
4. Discuss the factors affecting the supply chain in the hospitality industry.
5. What are the challenges of the hospitality industry related to the supply chain?
ANSWER:
1. Supply chain management (SCM) refers to the end-to-end process of planning, implementing, and
controlling the flow of goods, services, and information from the point of origin to the point of
consumption.
Benefits of Supply Chain Management:
 Builds stronger partnerships and support with clients
 Provides better distribution processes, with less delay, for demanded goods
and services
 Increases efficiency and functions for companies
 Lowers shipping and warehouse costs
 Eliminates costs directly and implicitly
 Supports the shipping at the right spot with the right goods
 Enhances asset management and encourages the effective implementation of just- in-time inventory
models
 Assists businesses in responding to global dynamics, economic upheavals, growing market
preferences, and associated disparities
 Assists businesses in the supply chain to reduce duplication, eliminate risks, and achieve efficiency
3. Functions of Supply Chain Management
1. Strategic Level
• Strategic network optimization involving warehouse, fulfillment center, and facilities numbers, locations,
and scale
• Strategic relationships, contact networks for crucial details, and technological enhancements such as cross-
docking, exporting directly, or logistics with third
parties (with vendors, dealers, and consumers)
• Management of inventory life cycles to optimally combine new and current goods in the supply chain and
capacity management
• Chain operations for information technology
• Coordination of the whole corporate plan with the strategy of supply
2. Tactical Level
• Sourcing and other procurement decisions

• Decisions on production including the concept of contracts, schedules, and plans for the operation
• Purchasing choices including inventory size, location, and consistency
• The strategy of transport including pace, routes, and contracting
• Competition benchmarking of all processes including best practices around the business
• Fees with milestones
• Customer demand and customer habits focus
3. Operational Level
• The coordination of the allocation of daily output for each production plant in the supply chain (minute by
minute)
• Preparation and forecasting of demand, alignment of all customers' needs, and prediction- and provision-
sharing with all suppliers
• In coordination with all vendors, the supply preparation, including existing inventories and forecast
demands
• Inbound activities including retailer transport and shipment receipt
• Production processes involving materials use and finished products streaming
• Outbound operations, all tasks including customer efficiency, warehousing, and transport.
• Pledging orders for all retailers, production, fulfillment center, and other clients on all restrictions within
the supply chain
• All cases of transit disruption from manufacturing level to supply level, and plan for consumer payment
through retention of business losses by the insurance provider
4. Factors Affecting Supply Chain in Hospitality Industry
1. The hotel's customer or guest is referred to as "GOD." When it comes to strict uniformity, it may be
difficult at times. Customer satisfaction is critical in the hotel industry.
2. Management systems of different types, such as hotel operators, franchisees, chain hotels, and so on, are
various control systems that have varied implications on the supply chain management.
3. Current market trends indicate that computerized property management systems are utilized but solely for
front office administration and reservation. Interconnections across office operations, whether in the hotel
front office, back office, or buying process, are rare in most hotels.
5. Challenges of Hospitality Industry Related to Supply Chain
1. Raw Material Costs. The cost of purchasing raw materials in the hotel industry is prohibitive.
2. Material Ordering Costs. Individual agencies often utilize handwritten indents and transactions
independently. Several hotels do not have automated entry and sales request.
3. Inventory Handling. The required product forecast is very uncertain. It turns into Zato a paper tiger even
after it is done. The purchasing department stockpiles large quantities of goods and does not deliver the best
items to the user departments on time.
4. Emergency Purchases. Due to lack of preparation, emergency purchases are the norm rather than the
exception. Purchases are made on the spur of the moment at the request of user departments and are
subsequently formalized by completing the necessary paperwork.

Supply Chain

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Activity #1

1. Explain supply chain management and its benefits.

3. Functions of Supply Chain Management

parties (with vendors, dealers, and consumers)

• Chain operations for information technology

• Coordination of the whole corporate plan with the strategy of supply

• Sourcing and other procurement decisions

• Purchasing choices including inventory size, location, and consistency

• The strategy of transport including pace, routes, and contracting

• Fees with milestones

• Customer demand and customer habits focus

• Inbound activities including retailer transport and shipment receipt

• Production processes involving materials use and finished products streaming

4. Factors Affecting Supply Chain in Hospitality Industry

5. Challenges of Hospitality Industry Related to Supply Chain

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