Supply 4.1

• Supply chain


  The chain that must efficiently meet customer demands for products and services in the hospitality industry
• Supply chain


  • The impact of each driver and participant will determine how well they will meet the customers' demand and how profitable it will be to the supply chain business
• Participants in the Hospitality Supply Chain

  • Suppliers
  • Firms
  • Third-party agencies
  • Customers
• Suppliers


  Companies that provide raw materials to be used by firms
• Firms


  Businesses that store and convert raw materials and work-in-progress inventories into finished goods ready for sale
• Third-party agencies


  Agents that act as intermediaries between customers and firms
• Customers


  Individuals or organizations that purchase and use a firm's product or service
• Supply chain process


  1. Suppliers provide goods and services following purchase orders

  2. Firms process and prepare such goods for sale to third parties or customers

  3. Feedback is communicated to firms from third parties or directly from customers
• Major drivers of supply chain

  • Logistics
  • Cross-functional driver
• Logistics


  The accumulated planning, control, and implementation of the effective movement, storage, and facilitation of goods and services from one dimension to another
• Logistics sub-drivers


  • Facilities
  • Inventory
  • Transportation
• Facilities


  In the tourism industry, the destination where accommodation and food and beverage businesses are located, the cultures of the area, and national policies and regulations are carefully considered
• Inventory


  The industry must maintain an optimum number of inventories to deliver the required needs of guests
• Transportation


  The hospitality industry purchases important inventory and resources from different suppliers, which are then delivered through different modes that may be owned by them or through third-party suppliers
• Cross-functional driver sub-drivers


  • Information
  • Sourcing
  • Pricing
  • Quality
• Information


  Links the different participants of the hospitality supply chain
• Sourcing


  Determines the firms' operation and purchasing of goods and services
• Pricing


  Depends on the quality of services and seasonal demand
• Quality


  The standard of the products and services, determining why a customer will patronize a hospitality business
• Aligning supply chain with business strategy

  1. Define and communicate a clear corporate strategy

  2. Identify the areas of corporate strategy enabled by the supply chain

  3. Align supply chain performance metrics with the corporate strategy

  4. Structure the supply chain to optimize the strategic goals

  5. Align incentives end to end

  6. Keep refreshing the strategy and alignment process
• It is important for supply chains to be aligned with the business strategy since, like consumer preferences that are usually evolving, they too should be able to adapt to those changes and trends
• Define and communicate a clear corporate strategy - Corporate planning should establish concrete,

  achievable, and measurable target goals and determine how the hospitality business will differ from competitors.
• Identify the areas of corporate strategy enabled by the Supply chain - A business’s strategic goals must be aligned with how these will be delivered. It involves defining which part of the supply chain a business should be good at, allowing it to prioritize certain processes
• Align supply chain performance metrics with the corporate strategy - A business should measure its supply chain operations based on its performance against competitors and its ability to meet its goals, not on common supply chain measures, which most companies may have used.
• Structure the supply chain to optimize the strategic goals - All supply chain operations should be structured based on the business's strategic goals.
• Align incentives end to end - Internal performance reviews and bonus systems must be consistent, wherein there should be a balance between suppliers' incentives and the business's needs.
• Keep refreshing the strategy and alignment process - Some businesses have corporate planning every one (1) to three (3) years, but their supply chain strategies remain the same for decades.