RESTAURANT SUPPLY CHAIN MGT.

HOTEL SUPPLY CHAIN MGT.

TOURISM SUPPLY CHAIN MGT.
CLASS DISCUSSION
• Supply Chain Management can be defined as the
management of flow products and services, which
begins from the origin of products and ends at the
product’s consumption.
• It also comprises movement and storage of raw
materials that are involved in work in progress,
inventory and fully furnished goods.
• This includes materials and information flows both up
and down supply chain. A full variety of process such as
system management, operations and assembly,
procurement, production plan, order processing,
inventory management, transport, warehousing, and
customer support are therefore included in the supply
chain
SUPPLY CHAIN MANAGEMENT (SCM)
• is integrating management practices and information technology to optimize
information and production flow among the processes and business partners
within a supply chain. SCM is a management concept that integrates the
management of supply chain process
WHY IS SCM SO IMPORTANT?
•  TO Gain efficiencies from procurement, distribution and logistic
•  To reduce transportation costs of inventories
•  To meet the challenge of globalization and longer supply chains
•  To meet the new challenges from e-commerce
•  To manage the complexities of supply chains
•  To manage the inventories needed across the supply chain
Institute for Supply Management

• The design and management of

seamless, value-added processes
across organizational boundaries to
meet the real needs of the end
customer. The development and
integration of people and technological
resources are critical to successful
supply chain integration.”
Supply –Chain Council

• “Managing supply and demand,

sourcing raw materials and parts,
manufacturing and assembly,
warehousing and inventory tracking,
order entry and order management,
distribution across all channels, and
delivery to the customer.”
Council of Logistics Management

• “The systemic coordination of the

traditional business functions and the
tactics across these business functions
within a particular company and across
businesses within the supply chain for
the purpose of improving the long term
performance of the individual companies
and the supply chain as a whole.”
• For this module, we define supply chain
management to be the involvement of
planning and coordinating people,
processes and technology to create value.
To have an effective management of
supply chain, managers should harmonize
the operations of the business and its
external environment with the aim of
achieving the right product at the
right price and at the right time to
create profits.
WHAT ARE THE MERITS AND DEMERITS OF SCM
?
MERITS :
• With the increased visibility into the supply chain and
adaptive supply chain network, you can be more
responsive. You can sense and respond quickly to
changes and quickly capitalize on new opportunities.
• By offering a common information framework that
supports communication and collaboration, SCM
enables you to better adapt to and meet customer
demands.
• You can track and monitor compliance in areas as
environment, health and safety.
MERITS
• With SCM, you can low operational expenses with
timelier planning for procurement, manufacturing and
transportation. Better order, product and execution
tracking can lead to improvements in performance and
quality - and lower costs. You can also improve margins
through better coordination with business partners.
• Tight connection with trading partners keep your
supply chain aligned with current business strategies
and priorities, improving your organization's overall
performance and achievement of goals.
DEMERITS
• SCM is hard to implement in immature/informal organizations.
•  SCM can fail if both parties are not willing to share their
insights ,information throughout.
•  If in an entire SCM chain even one single node is hiding
information ,this will effect the profits and gains of the entire
network which may finally collapse. So transparency is highly
required in SCM.
•  Costs.
•  Requires trust.
•  Imbalance of power.
•  Strategic challenges.
OBJECTIVES & GOALS OF SCM
 To cut costs
 Increase profits
 Improve performance in relationships with
customers and suppliers
 Develop value added services that give a company
a competitive edge
 Objective is to be able to have the right products in
the right quantities(at the right place) at the right
moment at minimal cost
 Reduced inventory , reduced lead times , reduced
warehouse cost , helps in forecast accuracy
FOUR ENABLERS OF SUPPLY
CHAIN MANAGEMENT
1. Capable Human Resources
-Human resource is the most important
asset of any organization, but the key to
any success of an organization is the
quality of its employees.
 1. Capable Human Resources
- For supply chain professionals in order to ensure the
attainment of organization’s goal they must possess the
following ability:
a. View the supply chain holistically
b. Manage critical relationships
c. Analyze competitive markets
d. Engage in fact- based decision making
e. Practiced advanced cost management
 1. Capable Human Resources
- For supply chain professionals in order to ensure the
attainment of organization’s goal they must possess the
following ability:
f. Understand e- business systems
g. Analyze big data
h. Utilize mobile devices
 2. Proper Organizational Design
In order for its employees to be more
-
productive, organizations must ensure to have a
proper organizational design. Organizational
design refers to the process of assessing
and selecting the structure and formal
system of communication, division of labor,
coordination, control authority and
responsibility required to achieve
organizational goals and objectives.
 2. Proper Organizational Design
Organizational design in supply chain
-
management should feature the following:
a.Centrally led supply teams
b.Executive responsibility for coordinating,
purchasing and supply chain activities
c.Connection of supply personnel with internal
customers
 2. Proper Organizational Design
- Organizational design in supply chain
management should feature the following:
d. Cross- function teams to manage supply
chain processes
e. Supply strategy coordination and review
session between business units
f. Executive buyer- supplier council to
coordinate with suppliers
3. Real-Time Collaborative Technology
Capabilities
- Supply chain management has dramatically
evolved in the twenty first century due to the
development of information technology software
and platforms. Today, there are available real-
time systems software and cloud- based
technology systems for supply chain
management.
3. Real-Time Collaborative Technology
Capabilities
• Supporting supply chain planning and execution system
should have the following capabilities to perform:
a.Demand planning
b.Order commitment, scheduling and production
planning
c.Distribution and transportation scheduling
d.Materials replenishment
3. Real-Time Collaborative Technology
Capabilities
• Supporting supply chain planning and execution system
should have the following capabilities to perform:
e. Reverse auctions
f. Requisition to pay systems
g. Intranets
h. Webinars and podcast
i. Virtual meetings
4. Right Measures and Measurement
Systems
- Measurement systems is very critical in supply chain
management for the following reasons:
1. objective measurement supports fact-based rather
than subjective decision making
2. measurement is also an ideal way to communicate
requirements to other supply chain members and to
promote continuous improvement and change.
4. Right Measures and Measurement
Systems
- Measurements in supply chain management includes:
a. Use data from visible sources
b. Quantify what creates value
c. Use goals that change overtime
d. Rely on benchmarking to establish performance
targets
 4. Right Measures and Measurement
Systems
- Measurements in supply chain management includes:
e. Link to business goals and objectives
f. Feature efficiency and effectiveness measures
g. Assign ownership and accountability