content writer

Pooja Khardia

Introduction

The raw material is the initial stage of any product which goes through multiple sellers to become the final product. This whole stage comes under Supply Chain Management. To become the final product it goes through multiple steps of proper management, handling of material, fixed schedule of making, order transforming, and finally delivery (Tiwari et al., 2018). The main motive of supply chain management is to deliver valued services at a low cost. To maintain the low-cost hospitality business specifically hotels have to make bolder and strict moves to manage their production keeping the low-cost idea in mind always. One of the widely used methods to do so is cutting payroll and other employee benefits like a reduction in bonus. Supply chain management is an important element in the hotel industry. Marriott International is an American hospitality company that provides its service in more than 110 nations with 6000+ properties. This level of success of Marriott is because of supply chain management which is followed across thousands of properties. Marriott international has this vision to enhance the lives of their customers and for that, they are creating and enabling unsurpassed vacation and providing them leisure experience. Marriott International and other hospitality businesses are making sure to gain all the benefits from the supply chain like enhancing partnership by collaborations, better quality checking, more success rate, sufficient stock, the shipment of product, working in the low-cost budget, etc. A product could be attractive for patrons but drive unnecessary supply chain costs due to the impact the merchandise design has on sourcing, packaging production, warehousing, and transportation. 70-80% of the value of products of a product is set at the event and style state by factors like the number of materials and components, country of supply, time interval of fabric, standardization of parts across the merchandise portfolio, physical characteristics, and therefore the complexity of the merchandise (Koberg et al., 2019). Packaging from China could be a very price-competitive challenge but the lead times are long, requires large minimum order quantities are often complex to the source, and quality is harder to regulate than sourced more locally. Transportation is costly and is dependent on the supplier is of great risk. Product production is very detailed and of high quality in every business which follows supply chain management. Customer satisfaction can never be judged as only providing the desired good is not sufficient. It is important to supply good quality products at a decent price range for the customer. There are many hurdles in a business-like managing manufacturing cost, support network after sales, or if the business is lacking investors and you couldn't attract new buyers in a competitive market all these issues can be managed by proper utilization of supply chain sources. It can give enormous benefits like cost management with proper amplification of the supply chain.

Principles of supply chain management

1. Adapt the availability chain to customers' needs. Customers are divided into a special group, called segmentation. The foremost primitive ways to segmenting customers are divided into an alphabetical manner of ABC that will group customers on basis of volume and other factors like a fatality. There are many other variations of segmentation like on basis of product, industry, and trade channel. 2. Rearrange the logistics supply network. Each segmentation requires different logistic plans to make an impressive outcome. Plan according to the segmentation criteria your business is managed over. 3. Maintain demand planning. Trust is the biggest asset a partner can share within a business. Holding secrets and success plans will only result in the accumulation of waste stock files. 4. Produce products on the demands of customer requirements making sure to design and produce only after an order placed by the customer to maintain the product variety. As in the hotel business like Marriott international cancellation of booking only seems to a loss of the business. It won't be suggested to charge fees for cancellation as it will create a bad impact on the customer review, which will result in a loss in the upcoming customers. 5. Outsource strategically (Ben-Daya et al., 2019). 6. Develop IT that supports multi-level decision making. A multi-level committee is important to continuously discuss the new trends and how to change services to gain more customer trust and better reviews. Marriott International has already set a committee of 30 people in every branch office to continuously work on customer demands. 7. Adapt both service and financial metrics.

Importance of effectiveness of supply chain management from the perspective of the customer

The retailers are at the top of the availability, they're involved in the delivery requirements of products and services to clients or customers at competitive and affordable prices. A key advantage of effective supply chain management is its ability to assist the retailers to manage their assets better, most notably their investment in account receivable inventories and physical infrastructure (Tseng et al., 2019). The retailer is faced with many issues namely customer satisfaction, the power to handle the proper product and presentation of goods, management of traffic, product layout, warehousing, and working with updated technology to achieve a higher success rate. The retailers impact the manufacturer profit in two ways: 1. Directly through negotiating lower wholesale prices and better trade allowances. 2. Indirectly by affecting the intensity of price war among the manufacturer. Supply chain management enables firms to cooperate with the common goal of accelerating the general channel sales and profitability, instead of each competition for a much bigger share of a hard and fast profit the mercantile establishment location could determine the success or failure (Lambert et al., 2017). Other factors that also play a crucial role are the shop atmosphere, knowledge of the merchandise, facilities provided by the supplier, and future goals you'll plan for the hospitality business. The very first thing a customer notice is the appearance of a business like Marriott provides a rich and formal look which attracts the customer more. The second thing is always the service given by the business like the comfort level of their stay at the hotel. It helps to control the product and categorizing on basis of quality, time utilized, and total cost. By proper management of the available chain service partners like the retailer who produce supply, distributors, are aware to cut the rising expense and product delivery to consumers faster by proper internal management, in-house production, distribution sales, etc.

What kind of practices can be taken for benefits for retailers, distributors, and suppliers?

1. Formation of chain council. 2. Well trained staff according to the requirements. 3. Implementation of updated technology. 4. Maintaining a better relationship with a supplier. 5. Better collaborations to the business which have the same success goals. 6. Understanding the value of the total cost of ownership and not the price. 7. Including multiple departments in the supply chain like contracts. 8. Optimization of investments. 9. Updated reviews on the management and product. 10. Going green is the new trend and healthy too.

Suggestions for improvising efficiency and effective supply chain

Engage in meaningful strategy planning, not just budgeting because it is extremely important to possess a long-term vision. Increase the financial, managerial, and technological strength which can become the pillars of the continual success rate. Add values to their product and integrate more closely with their customers. A customer's feedback and happy mindset about that particular hospitality will enhance the probabilities of getting more customers. Integrate the own supply chain to scale back cost and improve performance

Importance of physical, information, and financial management within the supply chain of Marriot international

Physical distribution is a crucial marketing function for Marriott international which includes the marketing and transportation of the raw materials directly from the suppliers to the manufacturer and from their moving desired goods which were produced from manufacturer to the demanding customer or user. Physical distribution of Marriott international includes wholesaling the product and retailing them through different distribution channels through decision-making departments as of customer service, internal management, looking after the whole production, good quality packaging, completion of placed orders, movement and shipping, storage area selection, and temporary placing. A satisfied consumer is the biggest asset that a corporation has and this is what is also believed by Marriott. And they are trying to provide satisfaction to consumers by making sure to provide the right quantity of products at the proper place and time at rock bottom cost. Importance of physical distribution cost for the Marriott business: - 1. Creating time and place utility means managing proper transportation and warehousing. Storaging makes time utilization by storing the products and delivering them when the requirement occurs. 2. Help and cost. Proper and systematic plans made for transportation completing on schedule and looking for routes, warehousing location, and operation, material handling, order processing are often easily brought in cost economics. 3. Help within the stabilization of price. Customers expect price stability over a period of your time. 4. Improved customer service. Traditional supply chain management of Marriott international focuses on both materials and knowledge flow. However considerable cost reductions also can be achieved through optimally designed financial flows within the circulating chain saving thanks to minimized stock level may easily be offset by the value to finance the remaining inventory (Lugosi et al., 2017).

A cross-functional and integrated approach of supply chain management with other functional areas within Marriott international

An integrated approach to supply chain management involves creating alignment across the business process and throughout the supply chain application suite. Such an environment requires that the supply chain planning and supply chain execution process and applications are tightly coupled where planning activities are interrelated. Ultimately the thought is that the flow of cloth and knowledge throughout the supply chain becomes a unified process (Kache et al., 2017). Delivering on the promise of an integrated supply chain requires an organization to form business processes that be the due end to end across the supply chain and implement a technology architecture conducive to delivering a singular view of the supply chain within the understanding that trade-offs will be got to be made in some instances. A cross-functional team of Marriott international could also be a gaggle of individuals from various organizational functions who are brought together to understand clear worthwhile and compelling goals that might not be reached without a team. Teaming leverages organizational resources while utilizing the expertise of team members. Purchase typically participates during a team handling sourcing, commodities, quality, and new product/service development. A cross-functional team of Marriott international is a group of people who came together who had similar success goals and joined hands together to gain more achievements and success together in such a competitive field. Purchase typically participates during a team handling sourcing, leisure, quality, and development of goods.

The interrelationship between Supply chain management and other functional areas

The functional areas include logistics, planning, and physical transformation. All these three fields can be said to be parts of supply chain management but it will not right as they are different fields which are holding the same values. But all the values or work done in these functional areas can be seen together in supply chain management (Min et al., 2019). 1. Logistics: - Logistics include services like transport network design, material handling, customer services, system inventory, procurement, warehouse location, order management and fulfillment, etc. 2. Planning: - Planning includes customer value assessment, pricing, product/ service management, market opportunity asset, forecasting, channel strategy, customer communication, etc. 3. Physical transformation: - Physical transformation includes services, quality control, MRO, manufacturing, product service design, etc. All the three also co-relate with each other at some points which can be seen easily through the list of details.

Conclusion

Today supply chain management is well equipped with the extent of meets that a corporation requires. The availability chain mainly covers procurement, manufacturing, distribution, retailing, and lots of others. Most of the services of the availability chain are seen in Marriott's success rates. From different perspectives, the availability chain management has presented numerous opportunities to retailers, distributors, suppliers, and therefore the customer for supplies from low-cost areas of the planet. Supply chain management reduced the trade barriers, accessibility to modern technologies, better working skill, competitor comparison opened the skilled paths for stairs of success. It also depends on the leader and community working under the leader to stay walking on those stairs of success. ASSIGNMENT-2

Introduction

Marriott has advanced within the hotel business and has gained a high-level success place among all the hotels but some areas are still present which shows the problem of low management in Marriott International business-like looking for providing more luxury hotels in countryside destinations which requires a top-level hotel and providing them a great of experience of rich lifestyle hotels. There are many other problems like the corporate holes just one website which seems to be troublesome for the purchasers to succeed in. With the increasing technology and competition among many hotels, the customer's expectations are growing more and more. Marriott seems to be lacking a touch bit therein area. It's like there is a huge need of assembling a team for the creative innovation field, which can work on the customer's upcoming need. They need to be already a team existing in such an outsized business but still, Marriott must closely examine the working of the team for better success within the customer's eye (Law, R., 2019). Many factors may risk the margin of profit of any hospitality business, if we glance at the Marriott international business global climate change is making an enormous problem. The hotel business is functioning for the travel industry as long as no visitors or travelers coming all the hotel business will pack up soon. A climate can affect travel and tourism which results in fewer customers for Marriott.

Discussion

These problems are often seen to Marriott International by the danger of climate change: 1. Change in the services. 2. Change in climatic conditions. 3. Change in consumer behavior due to many influential parameters. Changes are mainly due to the government handling fuel or energy sources and applying carbon taxes to aware businesses about energy consumption and greenhouse gas effects created due to toxic gas emissions in the atmosphere. The demand from both leisure and business travelers is essentially impacted by extreme weather like tropical hurricanes, snowstorms, heat waves (Alexakis et al., 2019). Marriott created a worldwide green council for understanding the danger of global climate change within the year 2007. The council is formed from ten global offices representing various departments like lodging development, marketing global design, and sustainability. The main target was to continue enhancing the corporate sustainability efforts by the evaluatory from current practices and utilizing the environmental strategy as guidance to line future goals. Marriott International has a particularly complex supply chain. There are multiple stakeholders involved in the supply chain of the hotel industry. Usually, an outsized inventory is required which increases inventory holding cost. An enormous number of perishable goods can account for wastages and increased course. External factors and therefore the seasonality of Marriott international makes it difficult to forecast requirements accurately. Variable demand of Marriott international may be a key challenge because it makes a difficult to possess uniformity within the supply chain management processes. Cancellation and external factors increase the difficulty. Product lifecycle traceability may be a key challenge resulting in additional wastage. New competition and emerging markets are disrupting Marriott International's supply chain resulting in a loss in customers (Van Der et al., 2019). Automation may be a boon and a challenge also because it is adding new players within the supply chain while dislodging tons of others resulting in a continuously evolving ecosystem of logistics and provide chain. Thanks to tons of products resulting in numerous supplies, supplier performance is often a key challenge resulting in unnecessary disruption within the supply chain. Transportation and other logistics constraints always pose a challenge to Marriott business. The creation of the latest demands from the purchaser's thanks to innovation and changing service patterns is resulting in the loss of many financial portions. Lack of coaching regarding logistics and provide chain within Marriott international is causing an enormous loss to Marriott business. Marriott International has the foremost adapting supply chain managers who are dedicating most of their time to efficient strategies so that the corporate keeps growing and therefore the business climate still evolve. It's suggested that the availability chain must be thoroughly assessed and monitored to make sure that each product becomes grand within the market albeit it's an area product. The simplest practices include multiple processes like increasing supply chain visibility. Supply chain visibility refers to the business's ability to trace every component of your product from the very initiative of moving from supplier to you. Marriott makes multiple purchases on day to day on every branch during a different country from different sources, it is often hard to manage to seem for every single product (Chan et al., 2016). You can implement automated components during a warehouse. Automation is often through with the assistance of robotic technology otherwise you can ask the supplier to try that for you. You ought to ask the proper questions on the longer-term goals of the businesses you're working with and it's important to possess mutual interest. It is important to form a transparent project plan with all the working companies that are providing service to Marriott International the project plan are often wont to make sure that your decisions and investment are in line with supply chain goals. It'll requires multiple collaborations, multiple teams of all departments but it's of worth

Conclusion

Supply chain management holds various services and it is seen that following all practices is a bit hard. Marriott international business is well spread among countries and is already on great success but many lacking portions are seen which can be improved with slight changes in such a business. Supply chain management is taught to work on cost efficiency but it is not a small business that will go into bankruptcy or any kind of loss by spending some additional money on the discipline of staff in all branches of Marriott hotel. Marriott has already made communities of 30 employees in all of its branches to maintain supply chain management practices (Emelda. N., 2018). In this report, we tried to cover every aspect of the Marriot international hotel business working with supply chain management. Marriott is properly a family business that is passed from generations and continuing to grow more and more every year. The credits go-to supply chain management and also to the judgment level of the owners from generation to generation. Hotels with such royalty also face problems like a small business, and it is in good figures like managing low-cost services in every country even after working with the country's guidance. References Alexakis, G., & Jiang, L. (2019). Industry competencies and the optimal hospitality management curriculum: An empirical study. Journal of Hospitality & Tourism Education, 31(4), 210-220. Ben-Daya, M., Hassini, E., &Bahroun, Z. (2019). Internet of things and supply chain management: a literature review. International Journal of Production Research, 57(15-16), 4719-4742. Board, A. Hanna, Emad v. Marriott International, DBA Gaylord Opryland. Chan, E. S., & Hsu, C. H. (2016). Environmental management research in hospitality. International Journal of Contemporary Hospitality Management. Emelda, N. (2018). The Strategies of Marketing Used for Increasing Number of Wedding Events at Sheraton Bandung Hotel and Towers (Manage by Marriott International). Novi Emelda: 147010007 (Doctoral dissertation, Sastra Inggris). Farronato, C., & Pisano, G. (2017). Marriott International: The Next 90 Years. García Lillo, F., Claver-Cortes, E., Úbeda García, M., Marco-Lajara, B., & Zaragoza Sáez, P. D. C. (2018). Mapping the “intellectual structure” of research on human resources in the “tourism and hospitality management scientific domain”: Reviewing the field and shedding light on future directions. Kache, F., &Seuring, S. (2017). Challenges and opportunities of digital information at the intersection of Big Data Analytics and supply chain management. International Journal of Operations & Production Management. Koberg, E., &Longoni, A. (2019). A systematic review of sustainable supply chain management in global supply chains. Journal of cleaner production, 207, 1084-1098. Lambert, D. M., &Enz, M. G. (2017). Issues in supply chain management: Progress and potential. Industrial Marketing Management, 62, 1-16. Law, R. (2019). Evaluation of hotel websites: Progress and future developments (invited paper for 'luminaries' special issue of the International Journal of Hospitality Management). International Journal of Hospitality Management, 76, 2-9. Li, A., Li, A., & Su, J. THE MERGER OF MARRIOTT INTERNATIONAL AND STARWOOD HOTELS AND RESORTS WORLDWIDE: AN EVENT STUDY. Lugosi, P., & Jameson, S. (2017). Challenges in hospitality management education: Perspectives from the United Kingdom. Journal of Hospitality and Tourism Management, 31, 163-172. Min, S., Zacharia, Z. G., & Smith, C. D. (2019). Defining supply chain management: in the past, present, and future. Journal of Business Logistics, 40(1), 44-55. Min, S., Zacharia, Z. G., & Smith, C. D. (2019). Defining supply chain management: in the past, present, and future. Journal of Business Logistics, 40(1), 44-55. Guzzo, R. F., Abbott, J., & Madera, J. M. (2020). A micro-level view of CSR: A hospitality management systematic literature review. Cornell Hospitality Quarterly, 61(3), 332-352. Cuckoo, R. (Ed.). (2018). Handbook of research methods for tourism and hospitality management. Edward Elgar Publishing. Tiwari, S., Wee, H. M., &Daryanto, Y. (2018). Big data analytics in supply chain management between 2010 and 2016: Insights to industries. Computers & Industrial Engineering, 115, 319-330. Tseng, M. L., Islam, M. S., Karia, N., Fauzi, F. A., & Afrin, S. (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling, 141, 145-162. Van der Wagen, L., & White, L. (2018). Hospitality management. Cengage AU.
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Posted Mar 26, 2021

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