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School of Management Studies CUSAT, KOCHI.22 E-mail:firstname.lastname@example.org
Abstract:In a supply chain, different organisations enter into contractual relationships to supply services, products or goods, and the performance of each organisation depends on that of other organisations in the chain. This concept of a supply chain is also applicable to the tourism product. Tourism can be described as an amalgam of different interests, activities, stakeholders and businesses that are functionally linked together to form a distinct supply chain.A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and distribution of these finished productsThe potential benefit of considering not only individual enterprises but also the tourism value chain becomes evident
Key words: Supply chain management
However. handicrafts. and the infrastructure that supports tourism in destinations. high quality of enders is still a priority. It includes all suppliers of goods and services whether or not they are directly contracted by tour operators or by their agents (including ground handlers) or suppliers (including accommodation providers).There is no need to emphasize the fact that. in order to gain a strong marketposition. with stable contracts and foreseeable contracting conditions including prices is paramount. Tourism supply chains involve many components. Projects require time for companies to build knowledge and develop relationships. the tourist destinations and facilities that are used.1 GENERAL INFORMATION Nowadays. maintain it and leave the competition behind. It is beyond any question that the process of forming a supplychain in the tourist and recreation sector requires advanced and professional knowledgeof both transportation systems: carriage of goods and passengers. it is crucial to pay close attentionto the cost analysis in particular links of the supply chain as well as restructuring them. but also bars and restaurants.not just accommodation. since they direct and influence the volume of tourism. Destination sustainability efforts will require wider stakeholder partnerships and if only for this reason will be more time consuming to implement. It will be easiest to implement sustainability requirements inaccommodation and most difficult in transport. there is one more factor that plays an important and decisive role in this verysector.especially in the tourist and recreation sector. it is the costs rather than the prices that determine ourchoices when making important decisions. most visible in excursions and activities while most beneficial to the local economy when this supports food and craft production.1. Broad knowledge as well as practicalexperience in this field can bring a lot of support not only in the creation of the supplychain. the science of logistics and supply chain appears to be very helpful and applicable. its realization and monitoring processes but also in the efficiency analysis or eventendering procedures. Therefore. The supply chain comprises the suppliers of all the goods and services that go into the delivery of tourism products to consumers. and touroperators tend to require a steady and significant volume of operations with a supplier or destination if they are to make a significant contribution and expect changes in local operations .A secure income stream. transport and excursions. In planning actions for sustainable supply chains. waste disposal. in the view of a very competitive andmodern market of tourism and recreation. food production. b working to y improve the business operations of each supplier in the supply chain. Strange as it may seem. both to facilitate the necessary investments by the supplier. tour operators and The Travel Foundation should note that there are examples of good practice throughout the direct supply chain of tour operators as well as in a variety of tourist destinations but these are only implemented by some companies and many others can learn from them.0 INTRODUCTION 1. and to cement the trust in the relationship. Supply chains operate through business-to-business relationships. Tour operators haveenormous influence over activities throughout the tourism supply chain. Tour operators can use this to help in promoting general improvements in sustainability performance as part of good commercial practice. and supply chainmanagement delivers sustainability performance improvements alongside financial performance.
tourism oriented services. information management. To support suppliers in reaching Sustainability G oals. 3. including raising awareness onsustainability issues amongst suppliers and demonstrating why sustainability performance isimportant To integrate sustainability criteria into suppliers¶ contracts and preferentially contract suppliers that meet those criteria. Furthermore. recreation oriented services.2. catering services. 3. such an approach and division of hotel activities may seem a bitlimited. business entities orincorporated companies operate can easily and successfully adopt the premises oflogistics. competitive and leadingposition in the market.If we took the hospitality services sector in consideration. The areas listed above should be referred to in search for minimalization of costsand finding best solutions possible in order to gain a strong. marketing. As a matter of fact the science of logistics combines both theoretical andpractical issues. 1. . distribution processes. such as: supply processes. all its theories can be easily implemented and confrontedwith reality in order to verify whether the are efficient and applicable in real life. service production processes. 3. nd remaining competitive to assess and respond to risks and opportunities in the market. storage and warehousing processes.0SUCCESSFUL SUPPLY CHAIN RELATIONSHIPS BETWEEN COMPANIES AND THEIR SUPPLIERS ARE DEVELOPED AND IMPLEMENTED ACCORDING TO A DEFINED SERIES OF STEPS: 1.0 LOGISTICS AND SUPPLY CHAIN MANAGEMENT .Business benefits from adopting good practices for tourism supply chain management includeretention of clients. reduced costs a improved operational efficiency. if we looked at the hospitality sector from more detailed point of viewwe could distinguish different processes that take place. · management of risks and staying ahead 2. On the other hand. Therefore. increased revenue. To establish a sustainable supply chain policy and management system. Those segments of the market where many different firms. the efficiency and quality of hospitality services can be improvedthrough effective logistics management of the following: hotel management. information transmission processes.The market of tourist and recreational services is composed of the following: y y y y y hospitality services. as there they increasingly expect responsible behaviour even from those not willing to pay for it. 2. What is more. tour operating services. quality management. we would find that Strategies thereare quite a few areas where it is advisable or even necessary to fall back on the science oflogistics.
and a motivated and loyal staff. Good performance and a high -quality.Excursions & attractions 7. as satisfied staff are a key asset. and ity better acceptance by local communities in destinations. 5. protecting image and status. 4. can result in increased customer satisfaction and loyalty. 7.Catering. improved relationships with governments.Cultural. coupled with improvements to the quality of the tourism experience provided to clients. 14.Marketing & sales 10. particular for companies publicly quoted on stock markets. of legislative requirements. and enhanced brand value. 11. protection of the core assets of the business (environment and culture). reduced waste generation. 7.Laundry 14. 15. 9.Accommodation 12. improved sustainability can lower costs through greater operating efficiency. . depending on: Purchasing and contracting arrangements with suppliers. 3. staff and local communities.0 SUSTAINABLE SUPPLY CHAIN ADVANTAGES Working with suppliers to integrate sustainability into the supply chain can benefit tour operators. 5. 6.Customers Ground transport 9. food & beverages 13. A strong positve i reputation as a company that cares about sustainability issues. achievement of better recruitment and staff retention.Furniture & crafts 5.Infrastructure. 13. Sustainability practices can also lead to increased revenue and shareholder value by generating more repeat business and attracting new business from customers that value good and social performance. suppliers. 2. and reduced consumption of energy and water. 10. sustainable product can also help a tour operator reduce the risk of conflict or problems with suppliers. the ability to develop products to meet growing market demand.resources of destinations 4. customers and destinations.4.Waste recycling & disposal 5. services & 3. The costs and benefits of integrating sustainability criteria into the supply chain will vary for each company. enhanced staff performance.Tour operating* 11. 1. and improve its status as a respected partner in destinations. 6. enhanced public and marketing opportunities.Food production 15. social & sports events 6. 4.Energy & water supplies 2.0 TOURISM SUPPLY CHAN LINKS: 1. From a financial standpoint. strengthened brand value. This may mean enhanced access to key business resources such as capital. reputation and market share. 8. Availability of alternate suppliers in key destinations. 12.Ground operations* 8. governments.
and events or activities such as excursions and social activities. Barriers to sustainability. Good performance and a high quality. From a financial standpoint. such as external factors A company¶s main sustainability and operational concerns and Resources available to implement and promote sustainability throughout the supply chain 6. and a motivated and loyal staff. For tour operators. and improve its status as a respected partner in destinations. Sustainability practices can also lead to increased revenue and shareholder value by generating more repeat business and attracting new business from customers who value good environmental and social performance. the ability to develop products to meet growing market demand. tour operators are not always in direct control of the environmental and social impacts of those products. .Suppliers¶ current levels of sustainability performance and potential for change. which is then marketed to customers either directly or through travel agents. staff and local communities. suppliers. and enhanced publicity and marketing opportunities. ground transport within the destination. Yet. Each package generally consists of accommodation (often including some food provision). strengthened brand value. but also safeguard environmental and social sustainability. A strong positive reputation as a company that cares about sustainability issues. customers and destinations. improved relationships with governments. The benefits of promoting a sustainable supply chain Working with suppliers to integrate sustainability into the supply chain can result in a number of benefits for tour operators.0INTEGRATING SUSTAINABILITY INTO THE TOUR OPERATORS SUPPLY CHAIN: As intermediaries between tourists and tourism service providers. organizations and agents. improved sustainability can lower costs through increased operating efficiency and reduced waste generation. consumers increasingly expect the companies they buy from to ensure that their products provide not just quality and value-for-money. sustainable product can also help a tour operator reduce the risk of conflict or problems with governments. can result in increased customer satisfaction and loyalty. who offer products comprised almost entirely of contracted goods and services. this means that effectively implementing sustainability policies requires working closely with suppliers to improve sustainability performance throughout the life cycle of a holiday package. Because most of the goods and services included in a holiday package are provided by a supply chain of subcontracted companies. coupled with improvements to the quality of the tourism experience provided to clients. tour operators bring together a variety of tourism-related services to form a complete holiday package. This may mean enhanced access to key business resources such as capital. Companies must take responsibility for ensuring the sustainability of all the inputs that go into their products. transport both to and from the destination.
identify areas for improvement. they understand their clients¶ growing demands for high quality and sustainability.Providing technical support to suppliers on how to improve their sustainability performance.Raising awareness on sustainability issues amongst suppliers and demonstrating why sustainability performance is important. and share results internally and among external stakeholders.A baseline assessment of tourism service suppliers. Possible support measures include: . As tour operators deal directly with potential customers. environmental and social performance. effectively integrating sustainability into its supply chain will require the establishment of a coherent company policy and accompanying management system that set clear targets and actions for economic. . identify any potential problems at an early stage. promote transparency. Key elements of a successful sustainable supply chain policy include: . They also often have access to technology and information that smaller suppliers may have difficulty obtaining on their own. Because tour operators deal with a wide range of different suppliers.A system for monitoring and reporting on progress (as measured against the initial baseline). social and economic issues. The key components of this methodology include: 1)Establisha sustainable supply chain policy and management system For a tour operator. to ensure that goals have been achieved. There are a number of ways that tour operators can help enable their suppliers to improve their sustainability performance and meet set sustainability criteria and targets. determine priority targets and actions. 2) Support suppliers in reaching sustainability goals Tour operators are well-placed to support suppliers in improving their economic. environmental and social sustainability performance of suppliers and integrating the implementation of the policy into existing company management systems. 3)Integratesustainability criteria into suppliers¶ contracts Fully integrating sustainability issues into a tour operator¶s business practices will require altering the way purchasing choices are made and suppliers¶ contracts are written. they can more easily gather information on a variety of best practices and facilitate the sharing of experiences amongst suppliers.Steps toward integrating sustainability into the tour operators¶ supply chain Based on the experiences of its members in working with their suppliers to improve the sustainability performance of their supply chains. and . and generate a baseline against which to measure progress over time and review and modify the sustainable supply chain policy and action plan. The appropriate mix of support measures for each company and supplier will depend on data collected during the baseline assessment and the approach that the company has chosen to adopt for implementing its sustainable supply chain strategy. Including sustainability criteria in suppliers¶ contracts highlights the impor tance of sustainability issues to . . Basing this system on already existing internal processes will help keep down the costs of implementation and promote integration within a company¶s overall operations. environmental and social performance. particularly in areas that have been identified as priorities. environmental and social sustainability criteria into their choices of service suppliers and their contracts with those suppliers. to assess strengths and weaknesses in their current performance on sustainability.A sustainability action plan for improving the economic.Offering incentives to sustainable suppliers by recognising and rewarding improvements on key environmental. and . the Tour Operators¶ Initiative has developed a methodology for tour operators seeking to integrate economic.
. although the complexity of the chain may vary greatly from industry to industry and firm to firm.0 CONCLUSION Supply chain management is all about creating better relationships. Performance against sustainability criteria will need to be monitored and assessed as part of regular reviews of suppliers and improvements can be rewarded by preferentially contracting suppliers that meet the sustainability criteria.the tour operator¶s core business and ensures that priority issues are addressed with suppliers from the start. Sustainability criteria can be incorporated into suppliers' contracts to set both minimum performance standards that all suppliers of a particular type must meet and further optional criteria that they are encouraged to achieve. 7. Supply chain exists in both service and manufacturing organizations.
conservation.globalreporting.M.org downloaded on 31/12/10 6.managementhelp.icrtourism.uk downloaded on 31/12/10 7.Tourism Supply Chains-A report Foundation downloaded on from LeedsMet for The Travel 4 Anonymous.lk/news.Anonymous http://www.asp 01/01/11 3.heacademy.Sigala.org/documents/CI_ecotourism_supply_chain_ management downloaded on 01/01/11 2.Anonymous http://www.org downloaded on 01/01/11 . http://www.development.co.Anonymouswww.8.php downloaded on 31/12/10 5.0 REFERENCES 1.2008.org/guidelines/sectors/tourop.Richard Tapper.Anonymoushttp://www.http://www.
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