Consolidating Supply Chain for Tourism Employee Welfare Fund

This report discusses how Tourism Employee Welfare Fund (TEWF) can consolidate its supply chain to enhance customer value and satisfaction. It also evaluates how logistics can maximize profitability through cost-effective order fulfilments. The report outlines various ways in which TEWF can organize an effective supply chain, such as establishing a council to govern supply chain, adopting modern technology, and employing joint strategic sourcing. It also highlights the importance of logistics in minimizing production costs and ensuring flexibility of operations.

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Student Name
University
Operation management
Diploma Level 5
Date

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Executive summary
Supply chain management is one of the primary business functions. Just like accounting and
marketing function, supply chain involves a functional strategy, exclusive procedures and
functions. If business organization views its operations traditionally, the key benefit is
granted to the production of goods, finance and marketing, while other activities may be of
low priority. The functions of an organization in this case will be performed in non-
collaborative and disjointed manner, there will be limited scope of operations and the
management will tolerate external and internal neutrality functions. Nevertheless, if a
business organization apply a network supply strategy, all the activities will be integrated and
the scope of processes will be highly enhanced. The business activities will not only be
restricted to the materials management and production but also will involve management of
supplier relationship, physical distribution of goods and services and customer support. The
main purpose of writing this report is to discuss how Tourism Employee Welfare Fund
(TEWF) might consolidate its supply chain in order to the value of its customers and
guarantee their satisfaction. This paper will also evaluate the statement that logistics has
possibility of maximizing current and future viability through cost effective fulfilments of
orders.

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Table of Contents
1.0 Introduction..........................................................................................................................4
2.0 How TEWF might organize effective supply chain.............................................................4
Establishing a council to govern supply chain.......................................................................5
Properly staff and align supply chain.....................................................................................6
Adopt to the modern technology............................................................................................6
Establish treaties with the major supplier...............................................................................6
Employ in joint strategic sourcing..........................................................................................7
Concentrate more on Total Cost Ownership (TCO)...............................................................8
3.0 How logistics has got potential to exploit current and future profitability through cost
effective fulfilments of orders....................................................................................................8
a) The use of technology in logistics to record the client’s requirements...........................8
b) Adoption of third party logistics.....................................................................................9
c) The use of third-party logistics.......................................................................................9
d) Logistics help to minimise cost of production................................................................9
e) Logistics ensures flexibility of operations..........................................................................9
e) Technology breakthroughs..............................................................................................9
4.0 Conclusion..........................................................................................................................10
5.0 References..........................................................................................................................11

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1.0 Introduction
Tourist Employees Welfare is an organization under the ministry of tourism in Mauritius, it
has been set up under Tourism Employees Welfare Act of 2002. TEWF was initiated in order
to deliver for the economic and social welfare to employees that worked in tourism
enterprises. The main objective of this welfare fund is to set up projects and schemes and to
undertake other activities that are considered to be appropriate in endorsing the welfare of
employees of tourism sectors (Scandizzo, Cervigni & Ferrarese, 2018).
The TEWF worked in about 15 schemes which consist mainly the social grants. Education
grants and lending money to employees in order to advance their worth of life and educate
their children. TEWF also organize leisure activities and training programmes to assist it
members (Mahadew & Appadoo, 2018).
2.0 How TEWF might organize effective supply chain
For TEWF to gain competitive advantage, it will not only require to excel in its business
operations, but from managing its network which spans the organizations operations and
upstream and downstream operations. Since this is the era full of internetwork competition
TEWF need to understand the pattern of shift in the operation. The connection of both
upstream and downstream is what is known as supply chain. In other words ‘’supply chain is
the a set of three or more companies that are linked directly by one or more upstream or
downstream flows of products, services, finance and information from a source to a
consumer’’ (Papadopoulos, Gunasekaran, 2018).
How do organization attain best supply chain? The answer for this vary in different
companies, but there are some crucial practices that has been adopted by many best
performing companies. I will outline various ways in which TEWF will organize an effective

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supply chain. Some of the practices that I will explain may be straightforward, familiar and
simple while others might be new to the company. Implementing them will give the
organization a robust foundation to attain excellence in supply chain management (Villiers,
Nieman & Niemann, 2017).
Establishing a council to govern supply chain
The main purpose of the governing council is to direct and support supply chain strategy with
the overall strategy of the company. The membership council will include the cooperate
executives, managers of the business unit, supply chain leader and many other influential
leaders. Preferably the leaders would held regular meetings. The mere existence of the
council will indicate that TEWF supply chain has commitment and endorsement of senior
management (Yu & Huo, 2018).
We frequently observe most of the supply chain organization struggling to be recognize
because their strategies and objectives are different from that of the company. The existence
of the governing council will inhibit such by providing perpetual and consistent endorsement
of supply chain that directly relates to the corporate strategy of the organization (Gupta, Altay
& Luo,2017).
The council will also provide an effective forum for communication. A dynamic governing
council will create an opportunity for the leaders of the business unit to provide leadership in
supply chain management with information about future projects and strategies (Govindan,
Cheng, Mishra & Shukla, 2018).

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Properly staff and align supply chain
Staffing the supply chain will be vital to the success of the TEWF. The organization should
employ staff with sufficient skills and knowledge in supply chain management. Knowledge
and skills should be always a priority. The top leaders of the organization do not care much
on transactional ability because they focus more on leading strategies. As the leaders of the
supply chain move to join the management teams of their organization, they must poses extra
characteristics. The organization should employ management staffs that poses robust
communication skills and relationship skills, the staff should also be a position to have
critical thinking abilities and should focus more on creating value (Luo, & Venkatesh, 2018).
Adopt to the modern technology
TEWF should select a software that will make the organization to be more efficient, the
organization should also structure their processes and workflows within the selected
technology. TEWF should first of all review the areas that should be improved with the
technology, only technology that lead to the satisfaction of the organization process will be
adopted, for instance system that process loans and grants for the employees and also
determine eligibility. The technology would relief the company from the work load that
otherwise should have been performed manually. The technology will also ensure efficient
and effective purchase-to-pay process and will help the organization adopt mechanism and
strategies that will help in achieving greater benefits that come from the use of technology
(Sweeney, Grant & Mangan, 2018).
Establish treaties with the major supplier
TWEF should work closely with major suppliers, this means that there would be need for the
company to sign treaties. In most cases this has always been referred to as ‘’ Supplier
relationship management’’ but this means that there would be one way communication that is
‘’telling the supplier how to do it’’. A two-way communication would be more efficient for

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the organization, this type of communication would require both the seller and the buyer to
manage relationship jointly. This type of communication might be referred to as ‘’alliance
management’’ it would mean that suppliers and buyers would be working together to enhance
relationship (Jahn, Kersten & Ringle, 2018).
The four key objective of alliance management would be:
 Provide a tool to guarantee vibrant and healthy relationship
 Create a platform for resolving problems encountered in the supply chain.
 Develop goals for continuous improvement in order to attain value for both
parties.
With the use of sound alliance, TEWF will be equipped with talents that would be suitable
for the supply base of the organization and will help the company to create a sustainable
value when seeking improvement constantly.
Employ in joint strategic sourcing
Strategic sourcing is the pillar of successful and efficient supply chain management, although
an initiative for joint strategic sourcing offer better results.
Apart from considering strategic sourcing in is very important for TEWF to involve the
employees in the decision making process. The organization would be in a position to solicit
information and feedback regarding the strategies and objectives of the employees. These
may include the main areas of concentration such as information regarding finance,
operations, engineering. Quality assurance and environmental issues (Carbonara &
Pellegrino, 2017).

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Concentrate more on Total Cost Ownership (TCO)
Strategic sourcing would help the TEWF shifts its focus from viewing only the
purchasing price to comprehend total cost of consuming or owning a product or
services
3.0 How logistics has got potential to exploit current and future profitability through
cost effective fulfilments of orders
Logistics and supply chain concepts is inseparable because logistic management is a branch
of supply chain management. Logistics in this case refers to as the physical movements of
goods or services over a certain distances. Logistics may be define also as the physical
distribution of goods and services (Sindi & Roe, 2017).
Logistic management is define as ‘’ the part of supply chain management that plans,
implements, and control the efficient, effective forward and reverse flow storage of services
and related storage information between the point of origin and the point of consumption in
order to meet customers’ requirements’’ (Fosso, Wamba, Angappa, Papadopoulos & Ngai,
2018).
Logistics is a wide term for variety of activities. Without logistics supply chain will not be
possible.The following are cost effective ways in which logistics can exploits future and
current profitability of TEWF
a) The use of technology in logistics to record the client’s requirements- if the
organization can utilize Electronic Data Interchange (EDI) it will help it to lower the
administrative costs of purchasing order process and minimize the lead times via
direct renewal of stock

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b) Adoption of third party logistics- this will enable the organization’s capabilities in
logistics to be managed effectively with reliable management skills rather than just
investing in amenities and physical assets that are related to logistics.
c) The use of third-party logistics - currently there is a major growth in outsourcing of
logistics in Mauritius. Outsourcing in this case means that the logistics will be
outsourced from external organization. This is referred to as third partly logistics
(TPL). The organization would realize much profits from the purchases of TPL
services, these includes:
 The organization will minimize the cost of logistics accomplishments because
TPL the providers has economies of scale and thereby offers competitive
prices to their clients.
 With the use of TPL it would be possible for the organization to invest their
resources in many other strategic sectors without building their own large
physical assets (Michalski, Montes & Narasimhan, 2018).
d) Logistics help to minimise cost of production
The cost of production of TEWF has been decreasing, but the logistics cost has been rising
also. But if the organization’s logistics is managed very well productivity and efficiency
would be achieved, there would be significant reduction in the unit cost of services the
organization will consequently gain competitive advantage.
e) Logistics ensures flexibility of operations
Unlike before where services was offered within the physical location of the organization,
services delivery by TEWF have increase, the business scope is now offering a broad
logistics solution whereby clients can access services they need over the internet regardless of
the geographical location or the mode of transmission. This have reduce workload for the
organization and have also help in ensuring timely deliverance of services.

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f) Technology breakthroughs
Technology have change nearly all aspects on how TEWF operates. The organisation has
anticipation of attaining ‘’ digital fitness’’ in order for the company to attain this goal there is
need to exploit range of technologies including automation of services. Defining a digital
strategy will definitely makes the company to have competent management and hence will
help the organization attain more revenues.
4.0 Conclusion
In conclusion, Supply chain management helps in boosting services of the customers, for
instance, timely deliverance of goods and services. Existence of supply chain strategy helps
an organization to reduce the cost of operations and minimises cost of production and
purchasing (Mikurak & Accenture, 2018).
This report has shown how logistics affects profitability, there are also other importance that
is brought to an organization if certain logistics activities are adopted such as network design,
supply-demand forecasting, planning, production and scheduling. The main aim of logistic is
to optimise and coordinate transportation activities, while maintaining effective transfer of
information across all sectors (Bozarth & Handfield, 2019).

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