1. Role of SCM in a Hotel

2. Role of SCM
• The lean Paradigm
– relentlessly focuses on reducing
• Non-value addition activities
• Waste
• The Agile Paradigm
– create the ability to respond rapidly to any change
regarding
• Quantity
• Variety
• The Resilient Paradigm
– Ability to cope with unexpected disturbances by
• Flexible supply base
• Economic supply incentives
• The Green Paradigm
– Environmental performance
• CSR and carbon credits earned
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3. Role of SCM
Role of SCM is to optimize:
– Cost of Transaction
• High frequency of purchase
• High cost of quality control
– number of suppliers is huge
– Non-strategic suppliers
– Cost of Product Procurement
• High because of
– Tendency to purchase too many SKUs
– No consolidation & coordination among units of same chain
» No volume purchase discounts
– Cost of Inventory
• Inventory pile up due to
– Non standardization of products
– The lack of an interface with the sales and purchasing system
– Vendor- supplier relations are not so developed
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4. The genesis of the higher cost
• The customer centricity
– Redundancy of products
– Large pool of individual products
• No volume discounts
• Cost of ordering
– Higher number SKUs and suppliers thus the orders
• Inconsistency
– Large number of suppliers and products
• Poorly integrated application systems
– Lack of integration between purchasing & inventory
systems
– Absence of uniformity in products
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5. Thank you
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