Exploring the Nature, Role and Contribution of Supply Chain Management to a Hospitality Business

Exploring the nature, role and
contribution of supply chain
management to a hospitality
business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Supply chain concept, throughout the stages of resourcing, product design and
development................................................................................................................................1
M1 Evaluate how integration of supply chain concept, principle and processes improve
efficiency for hospitality organisation........................................................................................2
D1 Critically evaluate supply chain concepts, principles and processes for effective supply
chain management.......................................................................................................................3
TASK 2............................................................................................................................................3
P2)The importance of effective supply chain management from the perspective of customers,
suppliers, retailers, distributors and retailers...............................................................................3
M2 Critically evaluate importance of physical information and financial management within
supply chain................................................................................................................................5
TASK 3............................................................................................................................................6
P3)Cross functional and integrated approach of supply chain management with other
functional areas with in a hospitality organisation......................................................................6
M3 Evaluate implication of interrelationship between supply chain and other functional areas
using theories concepts...............................................................................................................8
D2 Critically evaluate supply chain interrelationship with other functional areas within
hospitality organisation and making recommendations..............................................................8
TASK 4............................................................................................................................................9
P4) Evaluation of supply chain management strategy................................................................9
M4 Critically evaluate supply chain strategy within hospitality company and present
proposals for improvements......................................................................................................10
D3 Justify and recommend improvements of supply chain strategy for hospitality organisation
...................................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry is a huge field which comes in service industry, that involves the
lodging, food and drink service, event organising, theme park and transportation, that all terms
comes under the hotels, restaurant, bars, coffee shops. Supply chain management is mainly focus
on the administration of supply chain. These activities take the benefits of consumer value and
also accomplish a sustainable competitive advantage. It shows the effort through supply chain
firms to develop and run supply chain in most significant and best possible way. This report
includes the supply chain concept, throughout the stages of resourcing, product design and
development. It also involves the importance of supply chain management that can interrelate
between the supply chain and other areas within the context of Starbucks. At last it involves the
recommendations that are useful to improving the supply chain strategy for hospitality business.
Along with the overview aspects of the organisation in terms of customers, retailers. This whole
report is based on the context of Starbucks. The Starbucks is a leading American multinational
chain of coffeehouses that is headquartered in Seattle, Washington. Within United State it is one
of the second largest waves of coffee culture(Barata, Da Cunha, P.R. 2018). The company was
founded on 1971, March 30. It is situated in around 31256 locations in worldwide. Starbucks can
majorly deals in coffee beverages, smoothies, tea, sandwiches and bakes goods etc.
TASK 1
P1) Supply chain concept, throughout the stages of resourcing, product design and development
The concept of supply chain management is about the flows of product and services. It
involves the process that convert raw material into finished goods. It includes the present contour
of a enterprise supply side activities to enhance the consumer value and gain competitive benefits
in the market. The concern brand which is, Starbucks it uses centralized system to lead its supply
chain management and arrangements network around in six continents. This organisation is
looking forward to operate and manage various global statistical distribution centres with overall
control. Supply chain works in circular motion which keeps the business on track, in which
business will smoothly and efficiently with effectiveness of work (Tiwari, Wee, and Daryanto,
2018). The stages of resourcing Starbucks changed its supply chain. This organisation wasn't
sure about that supply chain acquired that goal, but they come from bean to cup. Starbucks is
known for its services quality of product along with taste. It enhances the productivity also
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generate high revenue and profit maximization. This organisation take well run supply chain to
sure about barista pours a adorable cup of Starbucks coffee. That journey bean to cup is a
sophisticated. Coffee and other trade goods should be sourced from over all the globe and
acquired successfully delivered to Starbucks organisation. It’s around 16700 retail store which
serve around 50 million consumers in various countries(Fantazy, and Tipu, 2019).
Starbucks developed the product through the social media, it is a most perceptible coffee
house in the global nation. The success behind the Starbucks it providing great ambiance, store
fun, which a different menu items as per the taste of people. This organisation pushing their
competitive advantage to other domestic coffee houses through changing the customer previous
aspects by their use of social media such as Facebook, twitter, Instagram which reach the high
million followers. Starbucks covered the all social media, which helps to innovate and improve
their goods in crowdsourcing horizontal surface. The surface encourages the consumers to give
their ideas for making the better product. This things shows the customer priority, in which
customer feel happy and it seems familiar towards the organisation. It also improves the
consumer previous aspects, and gives the customer authority to provide feedback on what they
like and what changes organisation need. Starbucks replaces the cognitive content and need for
lengthy and expensive focus groups to leverage thoughts for product development. This process
gives authority to give urgent feedback where users of the level after comment on improvements
they wish too look and have other users vote to them. These all factors structured the
organisation in ethical manner which gives advantage to the organisation. Customer also involve
in this process to introduce new flavours such as cafe mousse, mocha coconut frapino. This thing
gives proper customer satisfaction and looking forward to grab more attention towards the
consumer.
The evaluation of SCM in term of hospitality, if company changes their menu items
according to season and also include some complementaries, company will generate more
revenue and also customer will happy. It creates the expansion of business(Stipanović, and
Rudan, 2018).
M1 Evaluate how integration of supply chain concept, principle and processes improve
efficiency for hospitality organisation
From the above explanation it is evaluated that Starbucks is a leading coffeehouses in the world
and in this supply chain management is very essential. Within hospitality organisation supply
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