Hospitality Supply Chain Case Study

Published: 2021-08-25 18:30:06
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This report provides and an analysis and evaluation of the impact and importance of the supply chain within the Hospitality, Tourism and Events Industries. This report describes the current state of impact of the supply chain itself within the industry as well as the importance of its nature through advantages and disadvantages stated throughout the report.
Methods of this analysis included extensive internet research covering the history of the supply chain within the industry as well as within the individual sectors themselves. Also scholarly journals and textbooks were accessed to gain information on this topic as well as extensive knowledge through previous research in the area. Results of the date showed that the supply chain has a major influence on the results of a business’s revenue and popularity within the general public and throughout the industry itself.
Statistical results show that if a adaptive supply chain is put into place within a business supply of goods and services are not uncommon and when supply is disrupted, management is able to adapt quickly to repair the disrupted link in the chain. In conclusion the report finds that the impact and importance of supply chain on the provision of goods and services reflects adequately within the three HTE industries. Contents Executive Summary2 Contents3 Introduction4 Importance of the Supply Chain5 Impact and importance in Tourism5 Impact an Importance in Hospitality6
Impact and Importance in Events7 The Pro’s and Con’s8 The interrelationships9 Conclusion10 References11 Introduction Supply Chain: The network of the retailers, distributers, transporters, storage facilities and suppliers that participate in the sale, delivery and production of a particular product, as defined by investorwords. com. It is fundamentally the movement of materials as they flow from their source to the end customer as the supply chain includes purchasing, manufacturing, warehousing, transportation, customer service, demand planning, supply planning and Supply Chain management.
It is made up of the people, activities, information and resources involved in moving a product from it’s supplier to customer. In relation to the Hospitality Tourism and Events Industries, a supply chain is essentially about logistics, procuring and bringing together components that make up a whole of a product or service or in term a ‘package’. Each HTE industry’s supply chain is different variation in different service to produce the final package to the final consumer; the guest.
Therefore the impact of the supply chain within such industries is vital to be successful and positive to ensure the goods and services delivered is of a quality and efficient standard with the ability to produce such services on demand. Importance of the Supply Chain There is a major importance for the supply chain in the HTC industries as each individual part of the industry relies on another in some way as well as rely on maximising services not only on revenue but the continuity and quality of supply. Organisations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and etworked economy. In previous years, manufacturers were the drivers of the supply chain managing the pace at which products were manufactured and distributed. Today, the final consumers; customers, are thriving for their demands and service expectations to be met and manufacturers are scrambling to meet customer demands for options, styles, features, quick order fulfilment, and fast delivery. Manufacturing quality is approaching equality across the board and as a result meeting customer’s expectations and demands for product delivery has emerged as the next critical opportunity for competitive advantage.
Businesses that learn how to improve management of their supply chain become widely successful within the industry and therefore competitive bodies look to improve their own performance to ensure to exhibit the best and upmost appraised service and performance. Within the HTE industries the importance of the supply chain is relevant to the fact that if a link in the chain is loose or fails, the final product intended will not be as successful as predicted. The supply chains are not just about accommodation, food and beverages, excursions, attractions and transport, it is sincerely about the whole end product.
This includes the infrastructure, services and facilities that make the destination appealing and produces sustainability for the destination. Impact and importance in Tourism In the tourism, there are many main links in the supply chain that initially impact on the final service and or product in the supply chain. As a part of the Tourism industry, a the impacts of a tour operator on the industry itself come from the impacts of all components of the products they sell, including use of raw materials and their processing and production, as well as impacts from transport and distribution.
It is important to understand the sustainability of each tourism product which fundamentally involves going right back to the raw materials from which they are produced, through suppliers, suppliers’ suppliers, and so on, right back to source, as well as ensuring that a company meets sustainability criteria in its own internal operations. Tourism, like all other supply chains, operates through business-to-business relationships, and supply chain management can be applied to deliver sustainability performance improvements alongside financial performance, by working to improve the business operations of each supplier in the supply chain.
Richard Tapper and Xavier Font from Leeds Metropolitan University state in their report Tourism Supply Chains that the main differences between tourism supply chains and those of other sectors are that tourists travel to the product, and the product that they buy has a particularly high service component in other words, it involves a higher proportion of people in the immediate production of the holiday experience. In turn, supply chain management in any sector including tourism, covers all parts of a product’s life cycle starting at raw material to processing, to the manufacture, then distribution, retailing, customer use and final disposal.
A further aspect of the tourism supply chain is the activities of customers while on holiday, particularly in relation to their behaviour, and what they source for themselves in destinations. Tour operators are marketing the whole holiday experience to customers, and this includes opportunities to experience a destination’s local products and services therefore tour operators can play a significant role in providing appropriate advice to their customers and have a large impact on details about local products and services, and in ensuring that local producers and service providers have access to tourists on a fair basis
Impact an Importance in Hospitality As a major piece in the industry puzzle, Hospitality and the supply chain are closely related to the expected quality of service as well as the ability to overall produce services on demand. It is to maintain supply to the business operator. Within a major hotel chain for example, not having a supply chain can impact significantly on the organisation and business revenue.
A hotel chain needs its supply chain of food and beverage suppliers, tourism operators, tourism wholesalers, transport providers and visitors services to provide the overall package for a guest and further the destinations status. For example if a hotel does not have a supply chain for food and beverages, that sector of the hotel will diminish and fail therefore be unreliable for the revenue and advance in hotel prosperity in general.
The whole ‘package’ that the hotel offers itself will be of minimal impact and interest to the final consumer; the guest. Impact and Importance in Events As well as Tourism and Hospitality, Events is the final major sector of the HTE industry. Having a steady supply chain always results in the smooth running of an event and if having a disruption in the chain is of a result to a weak link, there is backup and ideas implemented to prevent further disruption and continue on with the smooth running of event.
Although event sizes may scale, there is always need for the three sectors to work together to provide the final package within the supply chain. For example, if a major event was to occur such as Big Day Out, a major national music festival in Australia, there will be needs for accommodation available in the area to facilitate for all consumers looking to stay for the festivities.
Transport services to and from the event need to be looked into to provide that extra bit of service to the consumer. Food and Beverage is a major play in the event sector as providing these services provides almost 50%+ income and profit for the event itself. To ensure all these services are provided adequately, the supply chain for the event needs to be organised to ensure all these consumer demands are met, as well as exceeded customer expectations to allow customer return on later events.
It is with these extra links in the supply chain that the event not only demonstrates successful service, but has close relationships with suppliers and businesses for later expeditions. The Pro’s and Con’s Although it is thought to have an easier understanding of business exercises and organisation in the HTE industries under the influence of supply chain management, there are many advantages and disadvantages for the idea of supply chain management within the Hospitality, Tourism and Events Industries.
The advantages of having a supply chain in the industry are as follows: * A faster response to changes in the supply demand meaning with increased visibility into the supply chain and adaptive networks, a business can be more responsive and can sense and respond to changes and quickly capitalise on new opportunities and advantages for the business * Increased Customer Satisfaction by offering a common information framework that supports communication and collaboration to meet customer demands * Overall Improved cash flow of a business with information transparency and real-time business intelligence can lead to shorter cash-to-cash cycle times.
With reduced inventory levels and increased inventory turns across the supply chain network can lower overall costs. * Higher margins that can lower operational costs with more timely planning for procurement, manufacturing and transportation. This will result in better product tracking and as a result improvements in performance and quality with the lower costs involved. * Better synchronization with business priorities resulting in tight connections with trading partners within the HTE industry keeping the supply chain aligned with current business strategies and priorities improving overall company performance and goal achievement. The disadvantages of a supply chain are as follows: The heavy investment of time, money and resources needed to implement and overlook a supply chain as well as the decision to outsource a production facility lowers the cost of doing business for a company using a supply chain management *  The overall issue of employment, the traditional supply chain management involved salesmen and other managers who were to ensure that the transaction is completed as required. After the introduction of this new supply chain management there has been increased unemployment which has resulted to high unemployment levels in the economies, despite the new management system providing a faster and convenient way to improve both the firms objectives and the customer. The interrelationships The goal of managing the supply chain of a hospitality, tourism or event business must therefore be optimism to obtain the best value from the multitude of goods and services needed to run a business.
Supply chain management can be defined as the process of planning and implementing and at the same time controlling the supply chain in the most efficient possible way, the supply chain management involves controlling of finished goods from the origin to the consumption level. It is the need for these sectors to work together within the industry that the final ‘package’ for the consumer will be determined through the extensive. For example the events on larger scales such as mega and hallmark need a relationship with the tourism and hospitality industry to provide that extra customer satisfaction, in particular when the income from an event is derived from the sale of tickets and visitors to the destination of the event need somewhere to stay.
It is through a successful supply chain that the three sectors work together to provide packages for accommodation, food and beverage, tours, transport etc. to ensure that extra customer satisfaction as well as ensure that stable supply network to ensure the success for further events. Conclusion The supply chain management is more advantageous to a firm than the traditional supply chain management. Firms that have adopted the supply chain management strategy experience competitive advantages over their rivals who have not adopted this strategy. The firms gain advantage due to the increased efficiency in their transactions and this leads to increased profits.
As a result of a supply chain being implemented, It will improve productivity and efficiency of a business and in turn will improve the businesses processes whereby it improves on quality control and inventory control, this in turn improves on the productivity and efficiency of the businesses. It also reduces the transport duties which include the shipment and transportation duties which are shared by firms and as a result these duties are reduced and this constitutes to the reduction in the cost of production and final price of goods. In all, having a steady supply chain network within the HTE industries results in a successful businesses and strong ties between the links of the supply chain and the business itself.

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