Ritz Hotel: Operations, Logistics, Supply Chain Management Analysis

This report examines the operations, logistics, and supply chain management of the Ritz Hotel, a luxury hotel chain. It explores key issues such as quality customer service, cost management, and risk assessment within the context of the hospitality industry. The report delves into the Ritz Hotel's service delivery system, including service culture, employee engagement, service quality, and customer experience, highlighting the importance of infrastructure and risk management. Furthermore, it analyzes specific areas like inventory and transportation management, as well as theories such as transaction cost analysis and channel coordination. The report also addresses location and layout challenges, emphasizing the significance of raw material availability and proximity to markets. It concludes with a comprehensive overview of the operational, logistical, and supply chain aspects of the Ritz Hotel, offering insights into enhancing performance.

Business Management-
Understanding Operations
Logistics and Supply chain
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Recommendations & Conclusion....................................................................................................8
REFERENCES .............................................................................................................................10
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INTRODUCTION
Operations and supply chain management includes the broad field which includes the
both production and service industries, involved various function of sourcing, management of
materials, operations planning, distribution and logistics, retail, forecasting of demand, fulfilment
of orders and many more (Vilko, Ritala and Hallikas, 2019). Respective report is based on the
Ritz hotel which is an American multinational company which operates the luxury hotel chain
which known as Ritz Carlton. Respective report is based on the key operations, logistics and
supply chain management issues faced by the operations and supply chain managers in specified
organisation. Further it includes identification and clarify the way operations functions and
support specified market in which they serve. Finally, it includes recommendations regarding
way of improving performance by considering triple bottom line in business practice.
MAIN BODY
Supply chain logistics management involved collaboration in between the firms to connect and
collaborate suppliers, consumers and other partners for boosting their level of efficiency and
giving value to the end user. It is one of best effort by no. of organisations by working together
as an supply chain enables to manage flow of raw material by ensuring finished products to
provide value.
On other hand logistics is one of most important part of supply chain which processes
plans, implement and control various activities to supply products to the end user in effective and
efficient manner (Uys, Meyer and Niemann, 2019). The main goal behind logistics is to make
sure that consumer must receive desired level of products at the right time and place in right
quality and price range. There are no. of operation, logistics and supply chain management issues
that faced by the operations and supply chain manager that are as follows:
Quality customer service, Supply chain and logistics is one of most centralized on needs and
wants of consumers. It is related with the providing right quantity of products to right people at
right time to enhance the consumers in positive manner (Swierczek and Szozda, 2019). In
context of Ritz Hotel, it is very much important for respective organisation to provide one of best
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services in terms of food, hospitality and many other sectors in right time. It might look simple
but on contrary it is not. As consumers possess differ preferences and point of view so it is very
difficult to adjust needs of people in proper manner. Being able to provide unique solutions to
consumers helps to build distinctive image in marketplace. In that regards operation functions
such as research and development plays very much important role in evaluating consumers needs
and wants and try to build strategies that helps to give one of best experiences to them. In context
of Ritz hotel, with the help of continuous feedbacks and reform in their services with help of
R&D they can be able to improve their services.
The another major issue related with operation, supply chain and logistics is costing, cost
related with raw material, energy and labour which increase due to the economical constraints.
To continue the organisational operations it is very much potential to provide quality items at the
affordable rate and adjustments (Peng, Prybutok and Xie, 2020). In context of Ritz hotel, cost is
one of most concerning issue in front of organisation that need to be control in proper manner.
By purchasing products in bulk at affordable price to execute the plan by constant monitoring in
order to gain potential outcomes.
In context of Ritz Hotel to overcome from the above mentioned issues organisation use
the devoted to deliver excellent services. In hospitality industry serving consumers is first and
foremost objective by effectively compete on providing services to oneself differentiated and
ability to avail it. By designing the service delivery system that focus on the value enhancement
in core organisational activities and to engage front line employees to deliver one of best services
to them. Here are the major four elements of service delivery system that are as follows:
Service culture which is built on the various elements such as leadership, norms, work habits of
employees and mission (Gundlach, Frankel and Krotz, 2019). In context of Ritz hotel they set the
culture by overriding principles as per management controls, maintain and develop the social
progress that contributes in effective kind of service delivery process. While the superior service
delivery process or system and realistic service delivery concept has been established enables in
gaining long term success in organisational culture potentially.
Employee engagement, it includes the positive attitude of employees, their purpose driven
leadership and various HR processes. With the help of best designed process and system proved
very much effective to carried out people in higher engagement. Engagement of employees is the
moderator in between design and execution of service excellence model.
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Service quality, In service quality includes the attitude of employees, purpose driven leadership
and HR processes. The organisational strategy and design is one of most fundamental design of
whole service management model. Respective model helps in fulfilling mission and assistance in
pursuit of objective and mission potentially.
Customer experience, In customer experience includes the customer level of intelligence,
account management and improvement on continuous basis. Consumer perception regarding
products and services plays very much important role, in context of Ritz hotel by using social
media marketing, various promotional tools helps in perceive attributes very positively.
Infrastructure structure to manage delivery system, Infrastructure consist of the facilities and
services that is very much potential across whole organisation. In traditional infrastructure
includes the electric power, water, sewage system and telephone facilities. In the next generation
infrastructure includes information technology and connectivity with comparability that
characterized traditional infrastructure (Dujak, 2019). In context of Ritz Hotel, the key elements
of infrastructure includes database and information management systems, data communication
networks and various associated services with application of software in order to enhance
consumer experience in positive manner. Respective kinds of tools and techniques proved
beneficial for organisation into manufacturing and non manufacturing categories for an
organisation.
Risk management, Risk assessment is very much potential for an organisation. Due to constant
changes that takes place in market and due to commencement of various sources such as
consumer demand, political agenda and global sourcing create major concern in front of
organisation in operating their business works and activities (Dametew, 2019). In context of Ritz
Hotel, there are kinds of risk associated with the organisation in production as consumers are
very much demanding. While they bring new kind of products and services into the marketplace
so failure of it is directly concerned with the profitability and sustainability of organisation
adversely. In that regards it is very much potential for organisation to be prepared with the strong
risk management plan, that assist in organisation to overcome from the disruptions at time of
operations in positive manner. In context of Ritz Hotel, by hiring the logistic software
development organisation that helps in managing issues in most effective manner by applying te
less efforts at end. Logistics management is very much crucial for organisation to operate
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organisational works and activities in proper manner. By using respective practices organisation
can be able to demonstrate adverse impacts on organisational works and activities
Inventory and transportation management on specific fields, It has been pointed that in
organisation operations research on logistics management still rely on traditional domain that is
inventory and transportation management. However, the noticeable phenomenon is that mostly
document emphasise on the important features that come under models and contribute in
literature. For an example management of inventory of perishable products also known as
deteriorating products which is rather old field in logistics and supply chain management, with
using replenishment policies as inventory is major focus of study.
To analyse the aspects of operations, supply chain and logistics various kinds of theories and
practices plays very much important role that are as follows:
Transaction cost analysis, Respective theory is based on the financial models, it essentially
evaluate the prices assist in determining whether or not goods and services purchased at low
price or not and organisation can sale it higher price (Carbone and et.al., 2019). In context of
Ritz Hotel by using respective tool that applied within specified time frame to determine whether
materials or products price well when purchased and sold and if not, then find out best way to
offer pricing. For an example, a e commerce organisation want to stock the products for the
season of busy holiday. In that aspect with help of respective tool organisation can be able to
determine the fair prices on which they can purchase the products and services rationally. With
the help of supply chain manager organisation can apply respective information in taking better
decision making to stock products in warehouse.
Channel coordination, In many supply chain and logistics organisations operate supply chain
management by multiple businesses. Resulting, it is very much important to look from the
perspective of every one and beyond individual channel to coordinate the overall cost and save
time potentially (Bvepfepfe, 2019). In context of Ritz Hotel they by using flow chart in parts
supplier supply products and services with help of transportation to the manufacturer and then by
using transportation deliver up to retailers. In an organisation by using respective system
organisation can be able to realign some channels that assist to meet organisational goals and
objectives of multiple consumers. Channel coordination majorly applied with the inventory
management and ordering in order to gain the desirable outcomes potentially.
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Location and layout, it is the first and foremost decision in designing of new chemical plant. It
directly impacts on the profitability and scope for future expansion. In context of Ritz Hotel they
face problem in context of location and layout that affect on their profitability and sustainability
in marketplace.
Availability of raw material, It is very much important for an organisation to verify proximity
of sources of raw material before setting the location. It means that raw material should be
available within the economical distance easily so that organisational activities should be
operated promptly. In context of Ritz hotel they by using the knowledge and information
regarding availability of resources in a specified place helps in their decision making process.
The another issue is proximity to markets, distribution cost is an important attribute in the
overhead cost. It is very much advantageous to remain near centre of demand for finished
products. The major significance of respective attribute is to fully realized if the material
required to manufacture the products not in bulk helps to cut down fright charges. Consumer
industries such as life cycle, sewing machines, radio televisions and other kind of luxury
products set up near marketing centres where as producer industries such as steel mills are
located availability of raw material (Al-Hussaini, 2019). In context of Ritz hotel, they need to
analyse the availability of raw material so that they can produce products and services as per
consumer demand.
To analyse and solve the problems related with location and layout it is very much potential to
use the theory and practices that are as follows:
Alfred weber with publication of theory of Location of industries in the year 1909, firstly
developed general theory of industrial location (Botha and Badenhorst-Weiss, 2019). Respective
model depicts several kinds of factors to find out the optimal location at minimal cost for
manufacturing plants. Here are the some attributes depicts about best chosen location and layout:
The point of optimal kind of transportation that based on cost of distance to cut down cost of
transferring products at right place.
The labour distortion, that helps in getting most favourable sources at less cost of labour by
justifying greater transport distance.
Hence, it can be stated that for an organisation operations, supply chain and logistics
plays very much important role to deliver one of best products and services to end user by
identifying their needs and wants in potential manner.
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Recommendations & Conclusion
From the above report it has been concluded that for an organisation supply chain,
location and layout plays very much important role as location decisions directly related with the
strategic decision making which required huge financial investments and it is irreversible in
nature. In the fixed layout all necessary kinds of men, material and equipments are bought at the
fixed location place actually manufactured in order to gain the potential outcomes. Significantly
organisation need to evaluate respective areas by using various kinds of theories and practices so
that important outcomes should be obtained.
For an organisation improvements in their performance plays very much important role
as it helps in attracting large no. of consumers and gain sustainability in marketplace. In context
of Ritz Hotel, they face problems in regard of quality of their products and location & layout.
With the help of various kinds of theories and practice related with supply chain, quality and
layout attain potential outcomes. The another important way to improve results by using triple
bottom line theory expand the traditional kind of accounting framework to include other kind of
performance areas such as social and environmental impacts of organisation. With the help of
organisational strategies and tactics to improve quality and layout they can be able to improve
their level of performance.
Economic: with the help of economic factors such as by proper planning and evaluation of
economic factors organisation can be able to determine the dynamics which occurs into
environment. In context of Ritz hotel by employing large no. of individuals organisation can be
able to enhance living standard of individuals and enhance their level of performance.
Social factors: In social factors consist of change in taste and preferences of consumers, in
context of Ritz hotel by understanding needs and demand of consumers they can be able to
improve their level of performance. In that regards they by enhancing quality of their products
can be able to offer desirable products and services to end user.
Environmental factor: In environment factor plays very much important role in working in self
interest of people within the organisation. In context of Ritz Hotel, they by potentially focus on
the planet protection so that they don't have to bear cost. While they invest in the CSR activities
can be able to overcome from quality and layout issues potentially.
It has been recommended that organisation need to conduct through research and development
by virtualising various factors and attributes that contribute in development and gaining growth.
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By choosing best location and layout organisation can be save cost and time in delivering right
kind of products at right time so that best outputs should be given to consumers.
REFERENCES
Books and journals:
Al-Hussaini, A., 2019. A study on sales growth and market value through supply
chain. Uncertain Supply Chain Management. 7(3). pp.457-470.
Botha, A. and Badenhorst-Weiss, J.H., 2019. Risk management in a bulk coal export logistic
chain: A stakeholder perspective. Journal of Transport and Supply Chain
Management, 13(1), pp.1-16.
Bvepfepfe, B.S., 2019. Supply chain network and logistics management. In Logistics and Global
Value Chains in Africa (pp. 45-89). Palgrave Macmillan, Cham.
Carbone, V., Moatti, V., Schoenherr, T. and Gavirneni, S., 2019. From green to good supply
chains. International Journal of Physical Distribution & Logistics Management.
Dametew, A.W.W., 2019. Enhancing Basic Metal Industry Global Competitiveness Through
Total Quality Management, Supply Chain Management & Just-In-Time. Journal of
Optimization in Industrial Engineering.
Dujak, D., 2019. SUPPLY CHAIN MANAGEMENT AND LOGISTICS-RELATIONSHIP
DETERMINED BY COMPETITIVENESS. Economic and Social Development: Book
of Proceedings, pp.258-267.
Gundlach, G.T., Frankel, R. and Krotz, R.T., 2019. Competition policy and antitrust law:
implications of developments in supply chain management. Journal of Supply Chain
Management. 55(2). pp.47-67.
Peng, X., Prybutok, V. and Xie, H., 2020. Integration of supply chain management and quality
management within a quality focused organizational framework. International Journal
of Production Research. 58(2). pp.448-466.
Swierczek, A. and Szozda, N., 2019. Demand planning as a tamer and trigger of operational risk
disruptions: evidence from the European supply chains. Supply Chain Management: An
International Journal.
Uys, G., Meyer, A. and Niemann, W., 2019. Taxonomies of trust in supply chain risk
management in the South African third party logistics industry. Acta Commercii. 19(1).
p.14.
Vilko, J., Ritala, P. and Hallikas, J., 2019. Risk management abilities in multimodal maritime
supply chains: Visibility and control perspectives. Accident Analysis & Prevention, 123,
pp.469-481.
Zeraati, H., Rajabion, L., Molavi, H. and Navimipour, N.J., 2019. A model for examining the
effect of knowledge sharing and new IT-based technologies on the success of the supply
chain management systems. Kybernetes.
Zimon, D., Tyan, J. and Sroufe, R., 2019. Implementing Sustainable Supply Chain Management:
Reactive, Cooperative, and Dynamic Models. Sustainability. 11(24). p.7227.
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