EXPLAIN SUPPLY CHAIN MANAGEMENT

➢ Supply chain management is the handling of the entire production flow of a good
or service starting from the raw components all the way to delivering the final
product to the consumer. A company creates a network of suppliers (“links” in the
chain) that move the product along from the suppliers of raw materials to those
organizations that deal directly with users.

WHY IS SUPPLY CHAIN MANAGEMENT IMPORTANT IN THE HOSPITALITY

INDUSTRY?
➢ Supply Chain Management is at the core of the upper hand for any association.
Without Supply Chains, the Hospitality Industry would rapidly come to a standstill.
There would be no organic product or vegetables in our eateries, no lager or wine
in our bars, and no beds or latrines in our inns. There would be no reusing of glass
or the removal of food items. There would be no clients. An efficient supply chain
management helps in significant cost reduction by developing and implement
contracts and agreements with suppliers of hospitality products and services,
securing for the hotels competitive prices be if for food and beverage, rooms or
property operations.

ENUMERATE THE PROCESSES OF HOW SUPPLY CHAIN MANAGEMENT WORKS

➢ The supply chain process is fundamental to good supply chain management. It is
used by companies to make their supply chain as efficient and cost-effective as
possible and deliver customer value and give them a competitive advantage.
There are five steps to the supply chain process. They are as follows.

1. Planning
➢ In order to control inventory and the manufacturing process, companies must
plan to match demand with supply. This prevents overspending on warehouse
space or not having raw materials needed for your manufacturing and slowing
down delivery of product.

2. Sourcing
➢ This step involves finding those vendors who can get the goods and services you
need when you need them. Sourcing is how you get supplies when you need
them and meet the demand of your customers.
3. Making
➢ Here is where those raw materials you procured are made into the products that
meet your customers’ demand. This is where assembling, testing and packing
occurs. Getting customer feedback is key to delivering customer value.

4. Delivering
➢ Getting your finished product to the customer is the next crucial step in the SCM
process. If you’re not able to get what you make to your customers all the
previous steps are for naught. This makes delivering key to supply chain
performance.

5. Returning
➢ Returning or reverse logistics is part of what’s called post-delivery customer
support process. It is important to have a clear channel for returns or risk
tarnishing your brand. The company can then take these low quality, defective or
expired materials and return them to their suppliers.

WHAT HAPPENS IF A HOSPITALITY BUSINESS FAILS TO FOLLOW THIS

PROCESS?
➢ Global Supply Chains related to the Hospitality Industry are going under serious
consideration to the level of sustainability they entail. For years, the negative and
socio-economic impacts have been overlooked and accepted to be part of the
process. Hospitality incorporates food and beverages, non-food and drinks,
furniture and equipment supplies and more. Improvement is required in every area
and it is time there was action taken. Often decisions are based on the cost and
efficiency of a product or service, as a result this leads supply chains to source the
cheapest materials or provider to source the product from. What does a
sustainable supply chain management mean to you and your organization and can
users of the product or service play a part in helping sustainability levels.

WHAT IS THE RELEVANCE OF THIS COURSE TO STUDENTS LIKE YOU?

➢ As a BSHM student this course is very important to us because It’s vital to us to
understand the significance of supply chain management and in the hospitality
industry. We should focus on this to make our guests in the future a better place.
The hospitality industry differs in several ways to others, but the main thing is the
importance they have to place on keeping the guests and visitors happy with the
service they are receiving. With effective supply chain management and a team
 of staff on the frontline that are pleasant and helpful, there is not much more you
can do to encourage guests to enjoy their stay in your hotel and visit again next
time they are in the area. That is why this course is very important to us students
that will surely helps us in the future.

https://www.projectmanager.com/blog/supply-chain-management