HNHM320 Hospitality Supply Chain Management

Hospitality Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Key supply chain concepts, principles and process are applied throughout the stages of
resourcing, product design, development, logistics and distribution..........................................4
TASK 2............................................................................................................................................7
P2. Importance of effective SCM from the perspective of customers, suppliers, distributors
and retailers.................................................................................................................................7
TASK 3............................................................................................................................................9
P3. Cross functional and integrated approach of SCM with other functional areas...................9
TASK 4..........................................................................................................................................11
P4.Supply chain strategy within a hospitality organisation and present proposals for
improvement.............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Supply chain management is the administration of the flow of goods and services and
consists all procedures that deliver raw materials into final products. In includes the active
streamlining of a business's supply side activities to increase consumer value and earn rival's
benefits form the market. In Hospitality sector, supply chain management refers to customer
affiliated actions and activities like food and beverage manufacture and services, housekeeping,
front office management are given extreme importance (Al-Aomar and Hussain, 2018). The back
office operations and activities like accounts, acquisition, supplies chain management, income
recording etc. take a back seat. This assignment is based on McDonald's which is an American
fast food company and operate its business internationally. This organisation was established in
1940 by Richard and Maurice McDonald and headquartered in Chicago, Illinois, US. The firm
wast deal in restaurant sector and operate its business at number of locations with the help of
37,855 restaurants all over the world. This report will discuss about the key supply chain
concepts, principles and processes which are implemented throughout the stages of resourcing
and product design, development and logistic & distribution. Further, will explain about the
importance of effective supply chain management from the perspective of customers, suppliers,
distributors and retails. The interrelation between supply chain and other areas of a hospitality
company and evaluation of supply chain strategy within the hospitality firm will also explain.

TASK 1
P1. Key supply chain concepts, principles and process are applied throughout the stages of
resourcing, product design, development, logistics and distribution
Supply chain management concepts- The Supply chain is responsible to manage the
transportation of the goods and services which are received by the company form suppliers and
manufactured by the company. The main conception of supply chain management is to
administrate, control and minimise the cost of supply of the products and services which is
invested by the management of the company in all the activities of supply the goods to provide
the cost to the customers. In McDonald's the administration of the firm can also use this concept
in its product design and supply of the products to its customers (Al-Aomar and Hussain, 2019) .
It can be used by the company in its different term like product design, development, logistics
and distribution etc. For example, if the company use this concept in product design then it can
use effective machinery so that the products are manufactured in numbers within less time. This
helping minimising the designing cost and it can be used by the firm in its different activities. In
McDonald's, the administration can control the distribution to manage the cost by supply those
products which are required and needed at that place.
Process of supply chain management- for the effective administration of supply chain, there
are several actions and activities which are performed by the management of the organisations
(Hong, Zhang and Ding, 2018). The process of supply chain management is mentioned as below
which can also implement by McDonald's in its business with the purpose of making control or
administrate the supply chain:
Planning- In this step, the company formulate effective long term and short term supply
chain plan of action. For the formulation of the supply chain system to the anticipation of
customer need, supply chain leaders require to germinate merged supply chain strategies. In
McDonald's, in this phase, the company can do effective planning to form a strong network of
supply chain so that the goods and services can be reached to the buyers on time or in effective
manner.
Procurement- The purchase procedure concentrates on the buy of needed raw materials,
elements and products. According to it, the company can make focus on purchasing the material
and goods which are required to manufacture the products and services. Because with the help of