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Impact of E-Business on Supply Chain Management

Essay by   •  January 7, 2012  •  Research Paper  •  935 Words (4 Pages)  •  1,598 Views

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Impact of E-Business on Supply Chain Management

Supply chain is about supplying the right product, to the right place, and at the right time in the most efficient manner possible. For this reason, modern organizations rely on effective supply chain management processes supported by technology and e-commerce. However, the basic infrastructure must be in place to support the different processes including logistics. The following will assess the effects of e-business in supply chain management for the hospitality industry. For instance, Hilton Hotels Corporation owns and operates more than 540 hotels and resorts worldwide. Demands for services and expectations vary from customer to customer. Supply chain management becomes crucial for the delivery of goods and services in a timely manner. In addition, the following will compare and contrast traditional and e-business procurement processes for this industry.

The Effect of E-business on Supply Chain Management

The management of supply chains is a complicated process because it requires coordination with business partners, internal departments, business processes, and various customers (Turban, King, Lee, & Viehland, 2005). The management of supply chains in the hospitality industry follows the same basic steps as any other industry. For Hilton hotels, delivering the right services at the right time is a challenging process that requires the coordination of materials, operations, and logistics. Each individual function in the supply chain management is interconnected and interdependent. Hilton Hotels are part of the service economy supply chain that provides lodging experiences, dining experiences, and vacation experiences to customers worldwide. In order for Hilton Hotels to provide those services effectively, they depend on a number of partners, materials, employees, and processes.

The hospitality industry depends on information technology and e-business to automate most of the internal and external processes as related to supply chain management. For example, Hilton Hotels must be able to manage resources effectively to improve operational efficiency. One of those resources includes immediate access to guest information that technology can provide. However, Hilton Hotels have to manage multiple resources and logistics that go beyond guest interactions. Hotels must coordinate the purchase of furniture, bed, blankets, towels, soup, food, drinks, etc. Hotels also need to coordinate the logistics of different events such as entertainment, housekeeping, meals, and other events. In addition, hotels also coordinate the transportation of guest and supplies to and from the hotels. Another area that requires the use of e-business is the handling of room reservations, scheduling conferences, and special events (Hilton Hotels and Resorts, 2011)

Demands and Expectations of Different Types of Customers

Customers in the hospitality industry have different demands and expectations. For example, some customer may need special types of food, others request bigger rooms, smaller rooms, Internet access, spa service, swimming pools, etc. In short, hotels have to satisfy demanding customers and other not so demanding. The bottom line is that everything that goes on at the hotel needs coordination between partners, internal department, suppliers, and processes. Without technology

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