Nature and Role of Supply Chain Management in Hospitality Business

This report explores the nature, role, and contribution of supply chain management in the hospitality business, using Marriott International as a case study. It discusses key concepts, principles, and processes applied in resourcing, product design, logistics, and distribution. It also evaluates the significance of SCM from the perspective of customers, suppliers, distributors, and retailers. Finally, it assesses a supply chain strategy and proposes improvements within the hospitality industry.

The nature, role and
contribution of supply
chain management to a
hospitality business.
Table of Contents

INTRODUCTION ..........................................................................................................................3
MAINBODY....................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Discuss how key supply chain concepts, principles and process are applied throughout the
stage of resourcing, product design , development, logistics and distribution.......................3
TASK 2............................................................................................................................................6
P2 Significance of SCM from the perspective of customers, suppliers, distributors and
retailers...................................................................................................................................6
TASK 3............................................................................................................................................7
P3 Evaluate the cross functional and integrated methods of SCM with other functional areas. 7
TASK 4............................................................................................................................................8
P4 Assess a supply chain strategy along with it, present a proposal for improvement..........8
CONCLUSION .............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Supply chain management refers to all activities that are related with the flow and
transformation of products or service from initial stage raw material to final stages of production
of finished goods. It involves resources with information inflows for up and down supply chain.
Hence, it includes all legion of system like management, operations and assembly, inventory
management production schedule, order processing, transportation, logistics, consumer service,
warehousing and so on (Hong, Zhang and Shi, 2018). The present report is carried out on hotel
Marriott international in order to exploring all the term of supply chain management. It is a
multinational diversified hospitality company, founded in year 1927 by J. Willard Marriott and
Alice Marriott. In this report discussion about concepts, principles, and process that are
applicable for the stage of resourcing, product design, development and logistics are carried out.
Furthermore the importance of SCM is involved along with it, the cross functional of SCM with
other areas of hospitality industry is covered. At the end of the assignment a supply chin strategy
and a proposal for improvement is devised within hospitality industry.
MAINBODY
TASK 1
P1 Discuss how key supply chain concepts, principles and process are applied throughout the
stage of resourcing, product design , development, logistics and distribution.
Supply chain management encompasses all function and activities which are related with
the flow and transportation of goods such as resourcing, product design development, logistic,
inventory and distribution and many other activities along with this it involves all information
too which is associated with all these activities (Wiengarten and et.al., 2016). It involves a series
of activities and process that need to be executed in effectual way within stipulated time
otherwise product will not be available for the consumer when they needed. In context of chosen
hospitality industry it is explained in detailed as follows:
Concepts of supply chain management:
Supply chin management is the lifeline of company so it need to be effective to keep
smoothing running of function. In which the main function is performed by the manger of SCM
are as follows:

Resource management:The allocation of resources need to be in effective manner in
order to optimize the production at reduces cost.
Information workforce: The sharing of information along with distribution will aids the
mangers of SCM to perform all function on track. If its not done then their will be chances of
breaking the entire chain and that will leads to mismanagement.
Principles of supply chain management:
Consideration of supply chain management principles is important in order to maintain
the balance between expectation of consumer and profit margin of company (Rajeev and et.al.,
2017). In which there are seven principles of SCM that are discussed below in context of Hotel
Marriott international:
Adoption of SCM tool according to the needs of each consumer segment : The group of
people is is divided according to the products or industry they prefer. In which one size fits all
modes in order to serve consumers which leads company towards enhancement of profit and
growth. And for this it is important to adopt a specific tool.

Customize logistics network for each segment : After segmentation of customer base the
next thing that is required is customization of logistics network in order to meet all segment. In
context of Hotel Marriott, the managers of SCM needs to design and organise their logistics,
transportation and inventory in effective way for meeting all singles standards.
Align demand of planning: In relevance to selected firm, the absence of demand will not
hamper business but still it is necessary as when they get data from their trading partner they will
be able to make maximum utilization of same.
Differentiate service closer to consumer: In this firm need to differentiate their service
or product with other competitive rivalries. Service that is offered by hotel Marriott need to be
differ from other players of hospitality company such as Hilton.
Develop IT that supports multi level decision making: In context of chosen firm they
need to build a strong IT support that will make easy for consumer to get right info about
company (Wu and et,al., 2016).
Outsource strategically: This stands for the test of time. In this company ask to other
parties for performing their task on behalf of them.
Adopt both service and financial metrics: In order to identify the profitability of firm,
mangers need to use ABC ( Activity Based Costing ) technique. In context of hotel Marriott,
their mangers needs to have depth knowledge about process of projects for performing in
effective manner before applying any tactics.
Process of supply chain management:
SCM needed number of participates in order to perform function and activities in
effective way. For this it posses several different process in order to carry out all function. In
context of hotel Marriott all peoples that woke there is called employees and they don't perform
task whatever they want (Kache and Seuring, 2017). In which each member has an specific role
and responsibility that makes Hotel more valuable. It also needed a manger in order to develop a
strategic plan, for allocation of resources and for monitoring the success. The role of SCM, is
needed for attaining the goal of company as it aids company in devising the effective strategies
and provides understanding and knowledge to workers for for a successful execution of plan. For
this it includes various process which are discussed below:
Planning : It tends to a process that are seeking for creating effective strategy for long
and short rage of supply chain. In context of chosen firm, their managers and leaders need to

make an integrated supply chain strategies in context of designing, prediction of consumer
demands as well as for designing the supply chain network.
Procurement : This process refers to buying behaviour related with the purchasing of
raw materiel, resources or goods that is needed in production of goods or services. In context of
hospitality Marriott firm, their managers need to take appropriate decision for buying any
resources or raw material for company as well as needs to focus on how they received products
from suppliers.
Production :It refers to conversion of raw materiel into goods which involves
manufacturing, conversion and stimulation of finished goods (D'Eusanio, Zamagni and Petti,
2019). In context of selected firm Marriott, their supply chain managers ensures and supports
production about the availability of resources when employees needed.
Distribution : The movement of goods from one place to another place is manages by
logistics department across supply chain. In which the transportation firm, third party logistics
company gives surety about safety and quickly flow of goods towards the demands of products.
Customer interface : The procedure of customers demands that is moving around all
problems that are linked with the planning of customer satisfaction in context of satisfying
buyers needs as well as fulfilling their orders perfectly (Hong, Zhang and Ding, 2018)
TASK 2
P2 Significance of SCM from the perspective of customers, suppliers, distributors and retailers.
It is well appreciated that SCM is an integral part of business and it is necessary for firm
to attain success and customer satisfaction.
Increase the customer services:
Consumer is expected to received good quality of service or products as well as quantity
to be delivered within small period of time. The the SCM is that tool which helps to meet this
demand of consumers. Along with this it is also helps in providing right product to right
consumers in context of selected firm Hotel Marriott, their consumers demands to get right order
in to their room in given time as well as proper housekeeping (Banerjee and Mishra, 2017)That
time the proper dividing of SCM strategies is required for satisfying the needs of consumers. So
it is essential for any firm to considered SCM in order to meet predetermined goal of firm.
Reduces operating cost:

It decline the scale of purchasing cost as the retailers wants to quickly deliver the
expensive service or products in order to avid the inventory cost. In context of Hotel Marriott,
their retailers try to distributes expensive services and products early for reducing the cost of
inventory.
Improve financial position:
supply chain inserts the profit leverages as it decreases the expenditure related with
supply chain as well as decreases the fixed assets. In context of selected firm, Hotel Marriott
their supply chain mangers lowers the utilization of warehouse, transportation inventory etc. in
order to decrees the effective cost.
Stronger the relationship between supplier and hotel :
As supply chain management assist manager to buy appropriate products or service for
hotel as well as it aids firm to to trust few suppliers rather than a large number so that the manger
will able to build a stronger relationship with them.
TASK 3
P3 Evaluate the cross functional and integrated methods of SCM with other functional areas.
SCM is a coordination method of managing the logistics or inventory activities in
manufacturing, or retail business. The main purpose of SCM is too optimize the efficiency of
supply chain distribution activities. In order to carry out all function and actives of firm the
internation between supply chain management with other functional areas of company. In
context of hotel Marriott all these are discussed below:
Procurement and SCM: Procurement is a process of buying raw material for a company
in which converting that raw material into finished goods and distribution of that finished goods
to consumers is termed as supply chain management. It helps mangers to take effective and
appropriate decision for buying the resources which company requires (Worku and Virdi, 2019).
In context of hotel Marriott, the manger of SCM aids company in procurement which ultimately
aids firm in improving the efficiency and productivity of manufacturing process.
Transportation and SCM: Transportation refers to movement of finished goods from one
place to another place with the help of air, rail train or bus. The transportation function is
essential to supply chain management. In context of chosen firm the availability of product at
warehouse doesn't not make any sense if that product will not delivered to consumer at right

time. So it is the responsibility of SCM manger to take care about all products that need to be
deliver consumer at time.
Marketing and SCM: the term marketing refers to promotion of goods and services
related with company in which it included delivering and exchanging of consumer values for
Clients, consumers etc. where as the task performed by the mange of SCM is that they avoids the
stock outs from promotions with the mangers of marketing as well as they both ensues that he
right info about product will be sent to consumers. In context of hotel Marriott, if their marketing
mangers will sends inconsistent info with SCM capabilities then there customers can get wrong
info and lose trust.
Finance and SCM: The function that is performed by the function department is to
measure the inflows and outflows of cash within company. And the values of supply chain
initiatives need to be measured in relation to impacts on Cash flows and market values. So both
accounting and financial based performance is related with the effectiveness of SCM. In
relevance to Marriott hotel, supply chain management integration plays a vital role for improving
the financial performance level of company as it will assist mangers in managing the stock of
inventory and that reduces the operating cost.
Human Resource and SCM: Function of HR manger is to recruit, selected and appraise
the performance of employees within organisation. For this effective strategies need to be
devised and that time SCM manger will help HR manger to make strong plan and strategies in
order to hire skilled and knowledgable person for company so that firm will able to achieve its
organisational goal within stipulated time (Harsasi and Minrohayati, 2017) In relevance to hotel
Marriott, their HR manger is collaborating with SCM partners in order to develop HR strategies.
From above discussion about interrelation of supply chain management with other
functional area, it has been analysed that it is very essential to considered SCM as it directly
affects the quality and profitability of company. In addition to this it assist company in various
ways such as it improves the cash flows by reducing the overheads and operating cost.
TASK 4
P4 Assess a supply chain strategy along with it, present a proposal for improvement.
Supply chain management strategies refers to a process that is needed to make effective
plan for the successful execution of plan or activities. In which a supply chain management

operates at three different levels i.e. strategic, tactical and operational. And at strategic level the
managements makes high level strategies of supply chain decisions with in company. And the
decision that is made with regards to supply chain will reflects all decision of corporate within
firm. In which it includes product development, customer, manufacturing, logistics and vendor
strategies. In context of Hotel Marriott all these are discussed in below:
Product development: In order to produce product, senior mange need to define a
effective strategy path so that company will able to achieve its goal within stipulated time. So
for the product development it is necessary to make effective strategy. In context of Hotel
Marriott, the SCM needs to formulated effective strategies related with the service development
so that they will able to grab more people for their services (Hong, and et.al., 2019). For instance
they can offer a a package of two days accommodation service to their consumers so that people
will influence. So that the sales and profit of company will ultimately increased.
Customer identification : This is an essential factor while making any strategies of SCM
as it is important to identity the potential customers for delivering the services and for this
formulation of effective and strong strategies need to be required. In context of Hotel Marriott,
the mange of SCM need to devise effective plan for attracting people & for this initial they need
to identify potential consumers and which requires a lot of research.
Effective logistics: it is the key success of supply chain as because the fulfilment of order
is an important part of supply chain management and for this the execution of strategic decision
need to be make for the logistic networks. In context of hotel Marriott, strategic decision are to
be need for warehousing, distribution centre so that company will able to attain its goal in small
period of time as well as save money this will leads company towards enhancement of
profitability of company.
Change management: The strategic level of implementation of logistics and supply
chain is related with the long term benefits of company over a specific period of time. In which
the change management plays an essential role in execution of SCM in various areas in order to
change the whole process of fixing issues with vendor (Singh and Misra, 2020). In context of
hotel Marriott, the managers of company needs to think and act real in order to adopt innovation
and changes as customers always like innovation services.
Risk management: It is critical to consider the risk management during logistics and
supply chain management execution for the mangers of Hotel in order to evaluate the risk that is

liked with the execution of strategy. In relevance to select firm the mangers of company need to
have proper understanding about benefits that are involved with the risk across logistics network.
Right metrics: Applying KPI's to logistics and supply chain operating during execution
of strategies is crucial as it monitors how well suppliers and vendors are meeting to the set
targets (Hong, Zhang and Ding, 2018). This will aid company to top and bottom line
performance. In context of chosen firm, they developed a weekly scorecard in order to guide
third partying terms of costing, service and productivity .
Recommendation
In Present scenario, supply chain management is wider and border scope and according to
council of supply chain management theses is effective system of organisation because they
earns over one trillions dollars in year. In context of Marriott hotel, they are focused on
networking system so it helps to smoothly running business operations. There are ample numbers
of ways to improve the supply chain management in order to utilize effective strategy which are
mentioned below.
First recommendation is properly monitoring and controlling inventory system in order to
organisation used ERP system in this various functions as well as features are available for
automatic purchasing of raw material. It is kind of software which is mainly utilize to
automatically placed orders with vendors and easily reached them with the help of certain levels.
It is effectively and efficiently maintain inventory in proper way and not requires many
workforce to specially handle these kind of functions and they perform other important duties.
Secondly, supply chain system or distribution networking of company followed
standardise because without standardisation business operations cannot perform smoothly so it is
essential aspect in order to save time and money. In addition to this, employees also utilise these
techniques which refers to increasing accuracy , encourage teamwork or team spirit and reduces
conflicts between team members.
Third, it is related to decision making process which included in supply chain
management because they whole process depends on accurate, timely data and information. It
includes real time process which reports are are available on time so it provides strengthen of
manufacturing process. Top management involves in decision making so able to instantly take
decision regarding inventory, purchasing and production of raw material.

Therefore, it includes various aspects which all are important from the point of view of
supply chain system and Marriott hotel effectively adapting such strategy so easily accomplished
goal and objective of company.
CONCLUSION
From above discussed report it has been analysed that supply chain management plays a
vital role in firm as it reduces the operating cost by managing the sock of inventory as well as
improve customer services by analysing the need of customers. And for this the mangers of SCM
perform various activities in order to mange procurement, planning, distribution and
transportation. Along with this they adopt several principles for attaining the goal of company.
Moreover, the internation between other functional departments and SCM is also needed in firm
as it improves the customer services, increased efficiency of communication by avoiding
conflicts among employees. And at the end of report a strategic supply chain is assessed. The
recommendation about improvement of SCM for Marriott could be focusing on networking
system as well as controlling and monitoring the logistics with the help of ERP.

REFERENCE
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