Benefits of Supply Chain Management for Hotel Industry

Supply chain management normally involves purchasing the raw materials from the vendors, then manufacturing the products and finally passing of finished products to the wholesaler, then to retailer and then to the consumer. The supply encompasses every effort involved in producing and delivering a final product or service, from the supplier’s supplier to the customer’s customer.

Proper implementation of the Supply chain process in the hotels gives the following benefits:

• The hotels which adopted cohesive supply chain management process, saves lot of time and they can invest this time to improve other functions.
• Saving money is the another benefit of the implementation of the supply chain system for the hotels. Supply chain system saves up to 8 percent to 15 percent of the costs for the hotels.
• It also reduces the order errors and discounts for orders made through the use of electrical devices and also improves the speed of orders.
• The supply chain management is flexible and the management can change this process with the changes in the market trends.
• Managing inventory for a business is very important because storage of unnecessary inventory increases the costs and by applying JIT the inventory costs are reduced.
• The supply chain software manages the procurement and inventory at the property level.
• Implementation of the IT applications in the supply chain management process helps the hotel management to exchange data electronically with the other partners of the supply chain.

The above said benefits got through implementation of the proper supply chain in the hotels improves the customer service and customer satisfaction directly or indirectly.