E-Marketing: Supply Chain, Value Chain and Virtual Value Chain

RUNNING HEAD: E-Marketing
E-Marketing
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E-Marketing 1
Contents
Introduction.................................................................................................................................................1
Core processes of the supply chain, value chain and virtual value chain....................................................1
Stages in development to attain maximum advantage of view...................................................................7
Examples of business integration models....................................................................................................9
Value to hospitality industry......................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11

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Introduction
The purpose of this report is to provide a brief introduction about the three aspects of supply
chain, value chain and virtual value chain as well. The report focuses on identifying the core
processes of supply chain, value chain and virtual value chain. It also explains the stages of
development that the hotel enterprises need to adopt or should adopt in order to take advantage
of the three aspects mentioned. The latter part of the report also explains the system/business
integration models that support the organizations in using this type of value chain. Along with
which, it also explains the value of use of such approaches in the hotel industry.
Further, supply chain refers to the process under which all the parties of the organization are
involved in fulfilling the satisfaction level of the customers. Supply chain is the integration of all
the activities of the company like procurement, logistics, sourcing, conversion etc. to properly
initiate the activities of the company. Value chain refers to the process under which the company
aims to increase the value derived from the products and services in response to its cost. And
virtual value chain refers to the business model that describes the distribution value generated
information services in other parts of the organization (Xu, & Gursoy, 2015). According to
Robert and Zahay (2013), all the three aspects are not different instead they are a form of
growing hierarchy that is only concerned about the satisfactory outcomes for both the suppliers
and the customers. Further, more details about the report are discussed below:
Core processes of the supply chain, value chain and virtual value chain
Supply Chain
Talking about the core process of supply chain, it should be noted that there are some building
blocks of supply chain that helps the management to initiate this facility. These blocks are
strategic planning, demand planning, order fulfillment, supply planning, manufacturing,
procurement etc. (Poirier, 2016).

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Strategic Planning: The initial step is strategic planning which involves strategic supply chain
design and strategic sourcing. The strategic supply chain refers to the design, optimization, and
evaluation of the supply chain model used in planning process. Every part of the model of supply
chain like resources, warehouses, transportation etc. is modeled in such a way so that it executes
the plan effectively (Christopher, 2016).
Strategic Sourcing Process: This process of supply chain helps the business to identify a
minimized set of suppliers with the help of which they can effectively manage strategic
relationship. Vendor analysis and purchasing statistics are used to develop the potential of the
suppliers. The strategic sourcing process develops parameters that drive the procurement
execution in the organization. Under this process of supply the company gains the value of
planning the optimization of resources properly (Gattorna, 2017).
Demand Planning: The process of demand planning involves forecasting, promotion planning,
lifecycle planning, and consensus demand planning.
Supply Planning: the process of supply planning involves the supply network planning, safety
stock planning, supplier collaboration, outsourcing, customer collaboration and lastly,
distribution planning.