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1. Supply Chain Management
Subject Teacher
Kurt Russel Ramos Eustaqio

2. Learning Objective
1. describe what supply chain is and what it does in the hospitality industry;
2. discuss the features, benefits, and functions of supply chain management;
3. identify the factors affecting the supply chain in the hospitality industry;
and
4. enumerate the challenges of the hospitality industry related to the supply
chain.
At the end of this chapter, you should be able to:

3. What Is Supply
Chain?
● A supply chain is a network of
suppliers, manufacturers,
assemblers, supply and delivery
centers, and logistics installations
that perform functions such as
material sourcing, processing, and
shipment to buyers of those
materials of an intermediate or
finished product.

4. ● A supply chain is the lineup of companies that market goods or services.
● All stages, directly or indirectly, involved in the fulfillment of a consumer
order have a supply chain. Not only the manufacturers but also the
shipping providers, warehouses, dealers, and consumers themselves are
involved in this supply chain.

5. Essential Features of Supply Chain
Management
Integrated Behavior
Supply chain management (SCM) integrates stakeholder
integration between the client and the provider.
Mutually Sharing
Information
In particular for planning and surveillance processes, an
efficient SCM exchange of information between channel
participants is needed.

6. Essential Features of Supply Chain
Management
Effective SCM often includes reciprocal channel risks and
incentives to have a competitive benefit. The long-term
emphasis and coordination between supply chain
participants should be risk-sharing and rewards-sharing.
The successful SCM requires cooperation between the
channel participants. Cooperation refers to the company's
coordinated, identical, or complementary operations in an
enterprising relationship, in order to achieve collectively
reckoned, superior results.
Cooperation
Mutually Sharing
Channel Risk and
Rewards

7. Essential Features of Supply Chain
Management
Supply chain is effective where all supply chain members
serve consumers with the same objective and
concentration. A mode of policy convergence has the same
aim and focal point for supply chain members.
Implementing SCM requires the convergence of systems
from the supply chain to production and delivery.
Integration can be achieved under cross-functional
conditions, by staff of plant suppliers and services provided
by third parties.
Focus on Serving
Customers
In
tegration Processes

8. Essential Features of Supply Chain
Management
The objective of successful partnerships is to merge
channel policies to reduce duplication and overlap in the
search for a degree of cooperation that makes partners
more efficient at lower costs. Integration of policies is
possible if the chain members have clear cultures and
management strategies.
Partners to Build
and Maintain Long
term Relationship

9. Benefits of Supply Chain Management
1. Builds stronger partnerships and support with clients
2. Provides better distribution processes, with less delay, for demanded
goods and services
3. Increases efficiency and functions for companies
4. Lowers shipping and warehouse costs
5. Eliminates costs directly and implicitly
6. Supports the shipping at the right spot with the right goods

10. Benefits of Supply Chain Management
7. Enhances asset management and encourages the effective implementation
of just-in-time inventory models
8. Assists businesses in responding to global dynamics, economic upheavals,
growing market preferences, and associated disparities
9. Assists businesses in the supply chain to reduce duplication, eliminate risks,
and achieve efficiency

11. Functions of
Supply Chain
Management
1. STRATEGIC LEVEL
2. TACTICAL LEVEL
3. OPERATIONAL LEVEL

12. 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. This has a detrimental impact on supply chain management.
Customer-related activities including food and beverage production and
service, housekeeping, and front office administration are critical in the hotel
industry. Accounts, buying, supply chain management, and revenue records are
pushed to the sidelines.

13. Factors Affecting Supply Chain in
Hospitality 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. These factors add to the
specific difficulties with assets that are often disputed and handled differently.

14. Factors Affecting Supply Chain in
Hospitality Industry
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. In other words, all
activities are customer-driven, ensuring that significant cost savings may be
realized by improving upstream supply chain management. As a result of the
above, some problems unique to the hotel sector may emerge.

15. Challenges of Hospitality Industry Related
to Supply Chain
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. In other words, all
activities are customer-driven, ensuring that significant cost savings may be
realized by improving upstream supply chain management. As a result of the
above, some problems unique to the hotel sector may emerge.

16. Factors Affecting Supply Chain in
Hospitality Industry
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. In other words, all
activities are customer-driven, ensuring that significant cost savings may be
realized by improving upstream supply chain management. As a result of the
above, some problems unique to the hotel sector may emerge.

17. Factors Affecting Supply Chain in
Hospitality Industry
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. In other words, all
activities are customer-driven, ensuring that significant cost savings may be
realized by improving upstream supply chain management. As a result of the
above, some problems unique to the hotel sector may emerge.

18. Factors Affecting Supply Chain in
Hospitality Industry
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. In other words, all
activities are customer-driven, ensuring that significant cost savings may be
realized by improving upstream supply chain management. As a result of the
above, some problems unique to the hotel sector may emerge.

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