Exploring the Scope of Utilising Effective Supply Chain Management Strategy for Cruise International Incorporated

Running head: SUPPLY CHAIN MANAGEMENT
Assignment 1 – MBA670 – Supply Chain Management
Name of the Student
Name of the University
Author note

1SUPPLY CHAIN MANAGEMENT
Table of Content
Introduction................................................................................................................................3
Concept of SCM.........................................................................................................................3
Applicability of SCM in service operation of CII......................................................................4
Partnership:................................................................................................................................6
Benefits of Partnering with suppliers.....................................................................................6
Essential considerations for partnership.................................................................................7
Purchasing..................................................................................................................................8
Purchasing in SCM................................................................................................................8
Ethical issues in purchasing function.....................................................................................8
Conclusion..................................................................................................................................9
Reference..................................................................................................................................10

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Introduction
Cruise International Incorporated is a cruise line company that serves individuals,
guests and travel agents while delivering a leisure tourism experience throughout the water
transportation. The services of Cruise International Incorporated consist of water
transportation, hotel, housekeeping, entertainment service, food and beverages. Supply chain
management is one of the most essential parts of any business operation that determines the
product and service quality, production and ever delivery procedure of the product
(Christopher 2016).
The purpose of this report is to exploring the scope of utilising effective supply
change management or SCM strategy for Cruise International Incorporated. In this report the
core concept of supply chain management will be discussed along with analysis of its
applicability in the chosen company. After that the appropriate partnership strategy will be
identified to maximise the benefit from the suppliers. The essential considerations and the
compliances will be discussed as well. Finally the ethical issues in the purchasing functions
and the importance of purchasing functions in supply chain management will be discussed.
Supply chain management:
Concept of SCM
Supply chain management is the management of flow of resource materials and
services and other required process that transforms the row materials into the final product
and service. Supply chain management is one of the major operations in any business
organisation. The word supply chain refers the inbound logistics part of the logistic process
of any company (Seuring 2013). In cruise-line business, supply chain management plays a
essential role to maintain the quality of the service product. The selection of appropriate

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supply chain can improve the profitability by reduce the operational cost and increase the
sales margin. It enhances the Return on Investment. The major components of a supply chain
management are suppliers, raw materials, logistics transportation, partnership, demand, and
resource material. Effective management of all these components allows a organisation to
improve their product or service lifecycle design that can boost up the quality of the output.
Demand is another essential regulator of supply chain management that determines
the focus and aim of inbound logistic to maintain the balance between demand and supply.
Demand is generated by the market, more specifically by potential buyers that makes them
the most essential factor to be considered. In this era of globalisation the international market
trends and consumer perspective directly and indirectly influence the supply chain
management operation (Barney 2012). For Cruise-line business the consumer behaviour in
travel and tourism has a huge impact on consumer based, market condition and logistic
operation. The Supply Chain Management Concept depends on the execution of various
procedures namely planning, procurement, production, distribution and customer
interference. Planning refers the selection of supply partners and row material choice.
Procurement refers the inbound logistic operation. Production refers the manufacturing of
product or developing the service for the consumer. Distribution refers the procedure of
delivering service or product. Customer interface refers incorporating the consumer
behaviour, choice and demand as a part of supply chain management operation.
Applicability of SCM in service operation of CII
Cruise industry is one of the most dynamic tourism and shipping sectors that involves
various types of products and services as well as delivering system. The presentation of the
service and the quality of the product are the two major considerations in maritime leisure
business. The services of Cruise International Incorporated consist of water transportation,