SUPPLY CHAIN REVIEWER

* SUPPLY CHAIN MANAGEMENT IN GLOBAL NETWORK

1. Raw materials - The generic supply chain begins with the sourcing and extraction of raw materials.
2. Producer - Producers (manufacturers or service providers) are organizations that make products or
service. - This includes companies that are producers of finished goods.
3. Distributor- A distributor is an intermediary entity between a producer of a product, or manufacturer, and
a downstream entity in the distribution channel or supply chain.
4. Retailer- Retailing plays a vital role in the supply chain management process.
5. Customer - - From the beginning of an order until order delivery, customers are involved in the process.

*SUPPLY CHAIN MANAGEMENT

- In simple words. A supply chain is the management of a network, which is used to deliver products
and services, from raw materials to the customers, through physical distribution, the flow of information,
and cash.
- It comprises a network of both process and entities.

* THE 3 ENTITIES IN A BASIC SUPPLY CHAIN

1. SUPPLIER - Is a person or business that provides a product or services to another entity.
- To provide high-quality products from a manufacturer.
2. PRODUCER - Who creates and supplies goods or services.
3. CUSTOMER - (consumer) is a person or a group who intends to order, or use purchased goods, products,
or services primarily for personal needs.
*THE 4 ENTITIES IN HOTEL INDUSTRY
- SUPPLIER
- PRODUCER
- DISTRIBUTER
- RETAILER
*THE 4 BASIC FLOW THAT CONNECTS THE SUPPLY CHAIN ENTITIES TOGETHER
1st The flow of physical materials and services from supplier to end customer
2nd The flow of cash from the customers to the raw material/ supplier
3rd The flow of information back and forth along the chain
4th The revenge flow of product returned.

*THE DYNAMICS OF SUPPLY AND DEMAND IN

THE PHIL. ECONOMY.
1. SUPPLY FACTORS AFFECTING SUPPLY - The availability or resources, technology, production
capacity, and government policies all have an impact on supply.
--ECONOMIC GROWTH - As the Philippines economy expands, so does the capacity to supply goods
and services.
--GOVERNMENT POLICIES - Trade, taxes, and regulation policies can all have an impact on the supply
side.
2. DEMAND CONSUMER BEHAVIOR - Consumer preferences, income levels, and demography all have
an impact on demands.
 --BUSINESS INVESTMENT- Government spending and business investment both contribute to demand.
Global economic conditions, exchange rates, and global demand for Philippines export...
3. SUPPLY AND DEMAND EQUILIBRIUM - The markets prices and quantities are determined by the
intersection of supply and demand.
4. ECONOMIC SHOCKS - Unexpected events such as natural disasters, pandemics, or global economic
crises can disrupt both supply and demand (COVID 19)
5. GOVERNMENT INTERVENTION - To balance supply and demand, the Philippine government may
intervene in the

NOTE: It is critical to understand that supply and demand are dynamic and liable to change owing to a,
variety of variables. These dynamics are shaped by the government, corporations, and consumers, and
economic policies are frequently introduced to manage imbalance and maintain stable economic growth.
WHAT IS SUPPLY CHAIN MANAGEMENT IN THE HOSPITALITY INDUSTRY?
(10 key aspect)
1. Sourcing, Procurement and Purchasing - Hospitality businesses need a steady supply of various products
and services, such as food, beverages, linens, toiletries, furniture and more.
- Businesses need accurate and timely information in order to make decisions and keep projects on
schedule.
RFI- Request for Information – kakayahan, info
RFQ- Request for Quotation - magkano magagastos
RFP- Request for Proposal- x deal – exchange deal
2. Inventory Management - The ordering, storing, using, and selling of a company’s inventory.
3. Distribution and Logistics - Hospitality establishment must have a reliable system for receiving deliveries
and distributing goods to various departments
4. Quality control - Ensuring the quality and safety of products is critical in the hospitality industry
particularly in food and beverages.
5. Cost control - Is a significant part of supply chain management.
- This includes not only managing procurement costs
6. Supplier relationships
PROCESS
1. SEGMENT SUPPLIER - Identify and categorize every supply by their importance to the business
2. DEVELOP A SUPPLIER STRATEGY - Create tactical plans and performance metrics for each
supplier or category
3. EXECUTE THE STRATEGY - Assign people to tasks and continuously measure the strategy
success.
7. Sustainability and compliance – Compliance is the first step to sustainability.
8. Technology Integration - Technology plays a crucial role in modern supply chain management
THE 4 STAGES OF TECHNOLOGY INTEGRATION
1. Directed- learners usage of technology is directed
2. Access- this stage is distinguished by strong access to information
3. Mobile- the traditional classroom is being eroded by mobile technology
4. Self- directed- is characterized by self-direction
9. Demand Forecasting - Accurate demand forecasting is vital for preventing shortages or excess inventory.
10. Risk management - Identifying and mitigating risk, such as supply disruptions, price fluctuations, or
regulatory changes.
- Is an essential aspect of supply chain management to maintain business continuity.
SUPPLY CHAIN MANAGEMENT IN GLOBAL HOSPITALITY INDUSTRY
- A supply chain doesn't have to be global, but the massive chains the interest us in this course are
the ones that run through corporations, and are decidedly global in scope.
SUPPLY CHAIN MANAGEMENT IN THE HOSPITALITY INDUSTRY
 Refers to the process of overseeing and optimizing the flow of goods, services, information, and
finances within the industry complex network of suppliers, producers, distributor, and hospitality
establishment.
GOALS - Effective supply chain management in the hospitality industry can lead to improved guest
satisfaction.
What Is Supply Chain?
• A supply chain is a network of suppliers, manufacturers, assemblers, supply and delivery centers, and
logistics installations that perform functions such as material sourcing, processing, and shipment to buyers
of those materials of an intermediate or finished product.
• A supply chain is the lineup of companies that market goods or services.
• All stages, directly or indirectly, involved in the fulfillment of a consumer order have a supply chain. Not
only the manufacturers but also the shipping providers, warehouses, dealers, and consumers themselves are
involved in this supply chain.
Benefits of Supply Chain Management
1. Builds stronger partnerships and support with clients
2. Provides better distribution processes, with less delay, for demanded goods and services
3. Increases efficiency and functions for companies
4. Lowers shipping and warehouse costs
5. Eliminates costs directly and implicitly
6. Supports the shipping at the right spot with the right goods.
7. Enhances asset management and encourages the effective implementation of just- in-time inventory
models
8. Assists businesses in responding to global dynamics, economic upheavals, growing market preferences,
and associated disparities
9. Assists businesses in the supply chain to reduce duplication, eliminate risks, and achieve efficiency
Functions of Supply Chain Management
1. Strategic Level
• Strategic network optimization involving warehouse, fulfillment center, and facilities numbers, locations,
and scale
• Strategic relationships, contact networks for crucial details, and technological enhancements such as cross-
docking, exporting directly, or logistics with third parties (with vendors, dealers, and consumers)
• Management of inventory life cycles to optimally combine new and current goods in the supply chain and
capacity management
• Chain operations for information technology
• Coordination of the whole corporate plan with the strategy of supply
2. Tactical Level
• Sourcing and other procurement decisions
• Decisions on production including the concept of contracts, schedules, and plans for the operation
• Purchasing choices including inventory size, location, and consistency
• The strategy of transport including pace, routes, and contracting
• Competition benchmarking of all processes including best practices around the business
• Fees with milestones
• Customer demand and customer habits focus
3. Operational Level
• The coordination of the allocation of daily output for each production plant in the supply chain (minute by
minute)
• Preparation and forecasting of demand, alignment of all customers' needs, and prediction- and provision-
sharing with all suppliers
• In coordination with all vendors, the supply preparation, including existing inventories and forecast
demands
• Inbound activities including retailer transport and shipment receipt
• Production processes involving materials use and finished products streaming
• Outbound operations, all tasks including customer efficiency, warehousing, and transport
• Pledging orders for all retailers, production, fulfillment center, and other clients on all restrictions within
the supply chain
• All cases of transit disruption from manufacturing level to supply level, and plan for consumer payment
through retention of business losses by the insurance provider.
Challenges of Hospitality Industry Related to Supply Chain
1. Raw Material Costs. The cost of purchasing raw materials in the hotel industry is prohibitive. The vast
majority of the hotel's consumables are organic.
2. Material Ordering Costs. Individual agencies often utilize handwritten indents and transactions
independently. Several hotels do not have automated entry and sales requests. The costs of transportation
and other associated expenditures have also been reduced substantially. Supply chain management may
result in significant cost reductions.
3. Inventory Handling. The required product forecast is very uncertain. It turns into a paper tiger even after it
is done. The purchasing department stockpiles large quantities of goods and does not deliver the best items
to the user departments on time. This is a common problem that leads to higher expenses.
4. Emergency Purchases. Due to lack of preparation, emergency purchases are the norm rather than the
exception. Purchases are made on the spur of the moment at the request of user departments and are
subsequently formalized by completing the necessary paperwork.