Different Aspects of Supply Chain Manangement in An Oraganization

Tourism is a huge and dynamic business that’s comprised of a huge array of service businesses that reflect the same dynamics and priorities which a manufacturer would need for operations planning (OP) and supply chain management (SCM). 1 such service business is the cruise ship sector in which vacationers travel through these kinds of vessels to various destinations.

While producers produce tangible products and wastes, service firms also produce waste, but their products are intangible. For instance, the product that a personal trainer might produce is a healthier client. Operations Managers (OM) in both businesses share similar interests in removing waste and providing quality products.

The two primary intangible products the vacationer (end-user) buys, along with a cruise ship company”produces” and provides, are relaxation and pleasure – the entire experience which enables vacationers to”suspend” their regular reality for a period of time and immerse themselves in gratifying experiences. The mission of the cruise ship industry is to provide this expertise to them in a way that surpasses their clients’ expectations, and it depends a great deal on the production sector to make this possible.

Comparable Dynamics and Priorities in Manufacturing and Support

The motion and connection of goods and services in the point of source, or the origin, to the end-user is known as”the supply chain”. Supply Chain Management is a part of the Operations Management that involves the successful management of many inter-firm processes such as:

Supplier/Vendor relationship management

Purchase Processing

Information Systems management

Sourcing and Procurement

Production Scheduling

Inventory Management

Warehousing and Distribution

Client Services

Environmentally sustainable practices

As in the production industry, the cruise ship sector requires the coordination of a variety of assets – financial, material, and human – working together to manage these processes to achieve organizational objectives.

Operations Management involves the management of all the activities that make an output (a product). In operations management, plenty of processes must be managed to produce and distribute products and services. Policies must be devised; daily operations must be handled, and so should using human and material resources. OM also needs the effective utilization of technology and communications systems to permit for timely ordering and delivery of products and materials, as well as the servicing of customers and stakeholders.

Policies in the service and manufacturing industry sectors may include social and environmental impact factors like the use of resources and the disposal of wastes. Spiritual, cultural, cultural, and legal issues like human rights, use of child labor, wage and hours; individual resource impact issues like age, gender, and other forms of discrimination also has to be considered. For more details, check Alberta dairy ef=’https://teamsters987.com/warehousing-manufactured-goods/’>union and teamsters987.com.

In a production scenario, these considerations would affect the goods and services that the railroad industry may use. Some of the goods include foods, linens, toiletries, furnishings, packaging, electronic equipment, fuel, etc. Each of these products is the output of a production process a cruise ship might use and all of these products impact the environment from the source to the end-user.

Organizations in both industries need to develop a sustainability mind-set and determine where waste being generated in their businesses and along their supply chains; the reason why and when, at what point it is being produced.

Therefore, for example, the OM of a cruise line that is socially and environmentally conscious, and that would like to improve their SCM and integrate a closed-loop technique of performance inside her organization, might be thinking of those inputs that a manufacturing firm utilizes in its production process and from the procedures that it uses to convert the raw materials to goods; the timely deliverance of those products; the caliber of consumer service after the product is delivered, and the effect that disposal of these products has on the environment.

Similarly, manufacturing companies (whose products that the cruise lines use) also wanting to do the same might, consequently, be considerate of the inputs that their providers utilize in their operations. As stated earlier, these inputs include – but aren’t limited to – various impact factors previously mentioned.

This backward view of this distribution chain connects the end-user of the help of the cruise ship to the start of the supply chain – and that includes all the companies that, working backward, may compose the series to the source. A source might be cotton growers as well as the policies that they have set up which may impact the methods that they use to grow, harvest, and provide the converters of the cotton.

Questions that Operations Managers might ask, for example, are:

· Ate the cotton growers employing harmful, soil polluting chemicals in growing the cotton?

· Is child labor used in harvesting?

· Are operating conditions secure, and are wage and hours legal and fair?

· Are materials being delivered on time – and if not, what are the reasons that are preventing this?

These concerns impact the management of the supply chain and associations can gain or lose a competitive edge if they don’t consider such questions because, in the event of a cruise ship, for instance, an enlightened vacationer might barely be impressed that the soft cotton sheets which she uses to the cruise line were produced from cotton picked by children who live in slums and that earn mere pennies every day for back-breaking labor – and therefore are denied an education due to these poor labor practices.

These kinds of considerations and decisions faced by a cruise line Operations Manager will affect his or her own business’s financial bottom line and will also affect the operations control of the down-line suppliers, as it also would in manufacturing. An individual can easily realize that the considerations and activities of Operations Managers in support businesses readily affect supply chain management in their own organizations.

Maintaining a Competitive Advantage

Today’s customers are more sophisticated and aware of the global impact that their activities have on the environment and several consumers already take action to reduce their”carbon footprint”, which is the donation to the environmental impact of human beings and their activities upon the planet.

By way of instance, the more waste one leaves in one’s daily activities, the bigger one’s carbon footprint. This idea was capsulized in the term” going green”. Consumers are not only changing their own customs to minimize waste and so reduce their carbon footprints but they are also holding corporations responsible for their impacts on the environment. This has placed pressure on many corporations to go green by adopting more environmentally friendly procedures in their operations.

Cruise ships are like floating cities which may generate as much as”. . .30,000 gallons of sewer, 250,000 gallons of the kitchen, bath and laundry wastewater and 10 tons of garbage — each day”. Effectively managing the inputs that create this quantity of waste starts with the successful management of the supply chain. Successful control of the supply chain starts with successful operations management.

Socially and environmentally-conscious associations that create a vision and a mission articulating a definite objective to take responsibility for ensuring the sustainability of all inputs that go into their products will have a competitive edge over people who don’t. Therefore a cruise line, as an example, that builds a culture of”world-class supply chain control” to its operational processes can gain a substantial competitive advantage over its rivals because”supply management directly affects the two factors which control the baseline: total costs and sales”[2] (Burt, Dobler, Starling. 2003, p. 10).

For example, a cruise ship line that’s an early entrant to World Class Supply Management practices will probably emerge as a pioneer in the practice and, as such, will stand to hold”40 -60 percent of the marketplace after rivalry enters the image” (p. 11). The standard of its offerings may also improve as it uses the sustainable products produced by producers. Since quality usually commands premium costs, this can help firms gain market share. Today, more informed and educated people demand high-quality products and so supports organizations that deliver quality.