Supply Chain Management of TUI Group

This report provides an overview of the supply chain management of TUI Group, the largest travel company in the world. It explores the link between company activities and supply chain theories, focusing on operations, marketing, logistics, and more. The report highlights the importance of value chain analysis and the role of technology in TUI Group's supply chain. It concludes with the significance of sustainable growth and ethical practices in the company's supply chain management.

Assessment
on
Supply chain management.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of Cox and Kings........................................................................................................3
Supply chain management of TUI group....................................................................................4
Linkage between company activities and theories......................................................................5
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Supply chain management is the flow of goods and services which includes all the
important processes of transform raw material into the final products. This plays an important
role within the company's management activity. Thus, the movement of goods and services in
organization is known as supply chain management. The present report is based on “TUI group”
which high and international tourism company. Company operates at various places and all over
nation. The report have aim to understand supply chain and its aspects to an organization. Report
will create the major focus on concept and theories learn from management strategic resources
and operations. Thus, discussions will based on strategic tangible assets of TUI group and value
chain of company along with inbound and outbound activities.
MAIN BODY
Overview of Cox and Kings.
TUI group is the largest travel company in the world which is served their services at
globally. Headquarter in Hannover German, the holiday and education travel group has
subsidiaries in US, Canada, UK, Japan, Australia and another places. The board portfolio
gathered under the group of umbrella consists of strong tour operators, 1600 travel agencies and
leading online portal six airlines with 150 aircraft, over 300 hotels and another incoming services
around the globe. The company have more than 71000 number of employees who are provided
and offers best and better services to customers (About TUI group, 2019). The company have
effective and valuable services.
The company is operates in various services like tour package and another services. The
company is also provided online selling facilities to their customers at globally. Origins of the
company lie in the industry and transportation company. In this respect, company need to
manage supply chain and logistics. That is help to maintain proper and effective records of
selling and earning of company through customers. Their logistics activities and services are
concentrated on the shipping sectors at there they keep this separate and bundled works. The
company worked to exist from the shipping business and to optimize their tourism business with
expansion in China, Russia and another. This will help to attract customers towards company in
effective manner.

Supply chain management of TUI group.
Supply chain management of TUI group is strong and popular which is analysed from the
fact which it has been the supply chain model. The supply chain model of TUI group is based on
six sigma and which is very significant in the supply chain activities. The supply chain activities
include with the shipping sector where company is load bundled products on ship and reach at
their destination and others (Đorđević and Hristov-Stančić, 2016). The supply chain is better
network of enterprises which are engaged in the different countries and function range from the
supply chain management. This creates more effectiveness for business to attract more customers
towards company. This is an important and flow of goods and information between comprises
with customers relationship management, services management, demand management,
manufacturing management and product management. This creates more effectiveness for
company in order to manage and maintain their services in effective manner.
A supply chain management of TUI is defined as a network of tourism organization
engaged in various activities ranging from products and services like flight, shipping and
accommodations to the distribution and marketing of final tourism products and services. First,
Illustration 1: Supply chain management
(Source: Supply chain analysis, 2017)

TUI group is coordinate with accommodations and transportation and bundled together from a
final tourism products. Second, services not to be stored for future and products are perishable.
Third, travel destination where tourism products means that the sale of the products to customers.
The products are normally examined by purchases. Therefore, the tourism sector is informed
about the process and related works in effective manner. Fourth, product are complex in nature
and decided from with product is transfers like flights and ship. The ship is better than from
flight services. TUI is shipped products and ship is ready to reach out products at customers. At
the end of process, ship is ready to go and reach destination. This is very important ad effective
for proper and effective management (Dubey and et.al., 2017). This is important and effective for
management of supplies which is based on products and services which are served by company
to their customers.
The company is change supply chain because of external dynamic environment. This said
that the company is very adoptive and has the unique features of quality deployment which is
helps company to know about their customers in effective manner. This is the ways the company
can easily trace any issues and problems in their supply chain model as well as address that in
effective manner.
Linkage between company activities and theories.
The supply chain activities of TUI group are completely linked with the various concept
and theories of supply chain management. This interrelation is described below by using value
chain model of company in effective manner. The strategic tangible of company is includes the
financial assets and physical assets. These are the assets which can be seen well as touched. The
strategic assets are includes building, land, travel equipment, buses, ships, flights and others.
Those are creates more effectiveness for company to manage their sales and purchase of
company in effective manner. The sustainability of the company is very effective which is linked
with value chain model.
Value chain model of firm and sustainability with value chain
Value chain is very important and effective concept which is discussed when it comes to
supply chain management of TUI group (Dweekat and Al-Aomar, 2018). This framework is help
to understand the supply chain activities of company in effective and correct manner. This model
is divided into two activities are primary and secondary activities. Primary activities like inbound
and outbound logistics, sales and services, operations and marketing. On the other side,

secondary activities like human resources' management, technology development, infrastructure
and procurement services. Explanation of those and linked with company activity and framework
are as follows:
Primary activities: The primary value chain activities of TUI group are directly involved
various products and services to sales targeted customers. For analysis primary value chain
improve performance of TUI group which is explained below in effective manner. Operations: Operations is the very important and effective part of the company which
includes various activities and make effective or valuable relationship with suppliers.
This creates more effectiveness for business in order to maintain their various products
and services at workplace in correct manner. The operation is the activity of transforming
inputs raw material to final products which are ready to sales and ready to get
experiences is called as operations (Marhamati and Azizi, 2017). The importance of
analysing operational activities raises from the raw material is ready to process into the
end products and services at market place. At the time of shipping products and TUI
make sure about packaging of products. This help to protect products from any issues.
Analysing operational activities is help to TUI group for improving productivity,
maximizing efficiency and ensuring about the competitive success of TUI. Marketing and sales: Marketing and sales another aspects of value chain analysis which
is help to promote products and services at market place by using various channels. The
marketing activity of TUI group is to highlight the benefits of offered products to
customers which is offering better than competitors. In respect of that sales agents plays
an important role within the company. Management of TUI have sales agents which are
give hard efforts to manage sales through marketing. TUI marketing and sales activities
are sales force, advertisement, promotional activities, pricing, channels and other
activities. Those are very important and effective for matching with customers needs and
wants in effective manner is created higher efficiency of work and its process. Inbound logistics: This includes various and effective activities which are receiving,
storing and distributing that make proper list of available goods and services for
operational processes (McKeown and et.al., 2018). This creates more effectiveness for
business. The inbound activity of TUI is building strong relationship with suppliers
which is help to receive, store and distribute products and create effective enjoyment for

customers who are fly one place to another place. This analysis is completely helped to
maintain and face challenges in product development phases. This is start from
production of sales in correct and effective manner. Outbound activities: This activity is help to collecting storage and delivering products to
customers is related with outbound activities and logistics. Outbound activities of TUI
group is with scheduling and order processing activities which are creates more
effectiveness for company to match with more highness and work process. TUI analysis
and optimize outbound logistics to exploring competitive advantage sources for achieving
objectives of business with proper growth management (Mitchell, 2019). The company is
timely managed all outbound activities which is deliver processes is decrease negative
impact on quality. In respect of that TUI need to increase growth opportunity and satisfy
customer of company in effective and correct manner.
 Services: The services another important part through which more customers are attracted
towards company. The pre and post sales services offered by TUI will play an important
role for developing customer loyalty. Present days, customers are considers with post
sales services are important for marketing and promotional activity. Services of TUI
group is to provide online selling facilities to customers and post sales services because
customers are attracted through only because they are pay for those services.

Secondary activities: the secondary activities also called as a support activity. Those are
coordinate and facilitating the primary value chain activities. Those are explained below in
effective manner are as follows: Firm infrastructure: This is the management system, which provide various services to
the whole organization and include proper planning, finance, information management
and quality control or others. The infrastructure of TUI group is to include quality
management and legal aspects for transferring products one place to another place as well
as consists with management of customers at the time of journey and fly (OriAde and
CAmerOn, 2016). The company needs make control on the various infrastructure
activities which is provided sustainability growth to company in effective manner. Human resource management: Human resources are another important aspects which
are creates more effectiveness for business by giving their hard efforts for achieving
goals and objectives of TUI group. Human resource management of TUI includes
recruiting, hiring, training and performance management. Those activities are more
effective and valuable for effective growth aspects. In respect of that, TUI motivate to
their employees and organize training session for improve skills of workforce.
 Technology development: Technology development is refers and consists with
integration of technology in various many of areas and fields where human resources
activities are worked properly. Technology development of TUI is in the online portal for
Illustration 2: value chain model
(Source: TUI group's value chain analysis, 2018)

booking and ordering customers in advanced. This help to make effective and valuable
management for adopting new technologies at workplace for better result of work. Some
activities are automation software, technology supported by customers services and
products design.
 Procurement: Procurement in value chain refers the process by involving purchase inputs
range from equipment, raw material and suppliers (Singh and Trivedi, 2016). Those are
creates by effective sources of actions. This is another important aspects which is linkage
with multiple value chain activities. In respect of TUI is carefully consists with
procurement activities to optimize inbound, operations and outbound value chain
activities.
Those are the aspects of value chain model which are enables for company to achieve strategic
outcomes. In aspect of that company need to make the best infrastructure with taking proper
orders from customer through online portal.
CONCLUSION
The above analysis has summing up the supply chain management has important striong
and effective aspects of company. This has creates effectiveness for business in order to maintain
their services and higher customers base for that report had been included supply chain model.
Illustration 3: value chain model
(Source: TUI group's value chain analysis, 2018)

Through that company successfully covered global market and achieve competitive advantage.
The value chain analysis suggested the company has delivery primary and secondary goods and
services which has created sustainable growth and ethical as well of company. The company has
also adopted new technologies and make effective supply chain model stronger.

REFERENCES
Books and Journals
Đorđević, A. and Hristov-Stančić, B., 2016. Creating package tours in tour operator business:
Analysis of key benefits for tourists. Ekonomika preduzeća. 64(3-4), pp.249-262.
Dubey, R. and et.al., 2017. World class sustainable supply chain management: critical review
and further research directions. The International Journal of Logistics Management.
Dweekat, A. and Al-Aomar, R., 2018, June. An IoT-Enabled Framework for Dynamic Supply
Chain Performance Management. In 2018 IEEE Technology and Engineering
Management Conference (TEMSCON) (pp. 1-5). IEEE.
Marhamati, A. and Azizi, I., 2017. The impact of green supply chain management on firm
competitiveness. International Journal of Supply Chain Management. 6(4). pp.215-223.
McKeown, T. and et.al., 2018. Inspiring future workplaces: An Australian and NZ small
business perspective. Small Enterprise Association of Australia and New Zealand
(SEAANZ). www. seaanz. org.
Mitchell, J. G. B., 2019. Value Chain Analysis in Pro-poor Tourism: Towards a Critical
Understanding of the Contribution of Tourism to Poverty Reduction (Doctoral
dissertation, University of Brighton).
OriAde, A. and CAmerOn, H., 2016. Logistics and Supply Chain Management in Travel
Operations. Operations Management in the Travel Industry, 1.
Singh, A. and Trivedi, A., 2016. Sustainable green supply chain management: trends and current
practices. Competitiveness Review.
ONLINE
About TUI group. 2019. Online. Available through: <https://www.tuigroup.com/en-en>
Supply chain analysis. 2017. Online. Available through: <https://3pllinks.com/start-complete-
supply-chain-analysis/>
TUI group's value chain analysis. 2018. Online. Available thorugh:
<https://www.essay48.com/value-chain-analysis/9124-Tui-Ag-Value-Chain-
Analysishttps://www.essay48.com/value-chain-analysis/9124-Tui-Ag-Value-Chain-
Analysis>