URDANETA CITY UNIVERSITY
Owned and operated by the City Government of Urdaneta
ACTIVITY 2
1. What is the significance of supply chain management in the hospitality
industry?
ANSWER:
Supply chain management is crucial for any organization, but it is especially
important for the hospitality industry in order for the enterprise to function and be
profitable. If hotel owners want to succeed, they must make sure their supply chains
are effective and well-managed. With the challenges that the hotel industry faces, it’s
more important than ever to have a successful supply chain management
solutions strategy in place. Here are some benefits First, Improved Customer Service: A
smooth supply chain leads to improved customer service. If guests like their stay, they
are more likely to stay at the hotel again and refer others.
following Cost Reduction: Good supply chain management may help a hotel cut
expenses. When incoming and outgoing logistics in the hospitality industry are properly
managed, the hotel may save a significant amount of money and finally, improved
organizational employee morale: When employees are happy with their employment,
they are more likely to stick around. The hotel's morale improves as a consequence,
and turnover is reduced.
2. Explain the Characteristics of a hotel supply chain.
SIX CHARACTERISTICS OF A HOTEL SUPPLY CHAIN:
ANSWER:
I. Perishability of products and services rendered.
The duration of time a product may be kept, utilized, and/or sold before it spoils and
loses all of its value is referred to as its perishability. Although there are different
degrees of perishability, things with a limited shelf life are regarded as being very
perishable. The phrase services delivered refers to the completion of a service
agreement between a renderer and a customer.
II. Presentation and interpretation of the products offered.
Presentation of products introduces customers to a new product that a company
wants to offer. Product presentations incorporate visual aids like as slideshows,
images, or movies. And when it comes to product interpretation, you must have a
thorough knowledge of the goods you are selling in order to accurately describe to
your consumer what kind of product it is, what is its application, and other facts.
III. Inherent complexity of products and services
Industrial purchasing process can affect by a multitude of complexities induced by the
nature of purchased products, the organizational structure and the influences of the
external environment. Other than that, product complexity is directly link to the supply
chain operation management.
IV. Uncertainty of Demand
The external causes that cause demand to suddenly rise or fall are referred to as
demand uncertainty. For instance, when Jercee, a software developer came up with
the idea to make an app to translate words in different languages, demand
uncertainty was high because no one else was offering this type of software.
V. Inseparability between service production and the end customer.
According to the idea of "service inseparability," services are created and consumed
simultaneously and cannot be separated from their producers. Companies,
institutions, or persons may offer these services through their personnel, operational
procedures, or physical assets. Additionally, the outcome of the service is equally
influenced both the supplier and the client. Inseparability refers to the fact that the
client must always be present during the service delivery process and that the
services supplied to them cannot be separated from the supplier.
VI. Tradition sale of tourism service packages
When travel-related components are combined and offered by a tour operator at a
fixed price. Packages known as tour packages combine several aspects of travel into
one. These packages may combine lodging, travel, activities, and other items that are
marketed together.
3. Explain the factors affecting supply chain management in the hotel
industry.
ANSWER:
I. Customer satisfaction
When consumers are pleased with your services, your business's reputation will grow.
Customers often evaluate companies based on the public reputation regardless of your
sector. Additionally, it will ensure consumer loyalty. Finally, since happy consumers are
often loyal to a business, it will enable you to build trust. Gaining a customer's trust
might be just as crucial as winning their loyalty.
II. Current trends
Trends are significant because they record development and experimentation and
provide us a way to communicate with customer’s right now. Keeping up with current
allows you to take advantage of new chances If you are aware of the most recent
developments in business, you may search for new opportunities that you can seize
and maximize.
4. The significance of supply chain management in the hospitality industry.
ANSWER:
The supply chain is a crucial component of the hotel sector. Building consistent
connections with suppliers and using a reliable ordering system are essential for
employees in this field if they want to increase the quality of service they provide to
clients. Modern hotel chains are utilizing intelligence technologies that collect, organize,
and analyze past and present purchase data in addition to inventory management
systems. The development of a supply chain improves understanding of the whole
system, making it simpler to establish common standards. It is suggested and evident that
supply chain growth will serve as the foundation for rivalry in numerous industries in the
upcoming era of hyper-competition.
5. Factors affecting supply chain management in the hotel industry.
ANSWER:
I. Further reduce operational cost
Lowering your small business operating expenses entails cutting operational
expenditures. It can include cutting your manufacturing expenses or your
expenditure on other items because operational costs also include the cost of goods
sold.
II. Increased outsourcing requirements
The process of employing a third party from outside a business to carry out tasks or
produce commodities that were previously completed in-house by the business's own
workers and personnel is known as outsourcing. Companies typically engage in
outsourcing as a cost-cutting strategy. As a result, it may have an impact on a variety
of occupations, including customer service, manufacturing, and back office work.
III. Increasing transportation cost
A shipper may increase their rates to reflect higher shipping costs, passing those costs
on to the final customer.
IV. Lack of Coordination between Various Departments
The biggest disadvantage of supply chain management is that it can work only if there
is proper coordination between all the departments of the company and if departments
are at loggerheads than this system will be a failure. Hence for example, if the
marketing department does not inform the production department about the possible
order than the production department will not be able to produce the desired order on
time.
6. What are the benefits of supply chain Management.
ANSWER:
I. Cost Efficiency
The first and foremost advantage of supply chain management is that it helps the
company in achieving cost efficiency because it can lower various costs like
transportation costs, warehousing, packaging costs, reduces wastage by timely delivery
of goods and so on which ultimately helps the company in achieving cost efficiency
which in turn increases the profitability of the company.
II. Helpful in Identifying Problem Areas
In the absence of proper supply management company will find it hard to find problem
areas as every department will blame other departments for failure but due to this
management company can identify the problem areas in the company due to which
company’s profitability and reputation are taking a hit.
III. Customer Delight
Because nowadays people do not care about paying more money provided they get
quality service from the company and supply chain management does exactly that
resulting in costumer of the company getting satisfied and we all know that a satisfied
customer will bring not only his or her business but acts as a marketing spokesperson
of the company by bringing other customers to the company.