SUPPLY CHAIN MANAGEMENT ENABLERS, DRIVERS AND OBSTACLES

Sreeraj Narayanan
School of management studies Cusat, Kochi-22 Email: reneesh.srk387@gmail.com

Abstract: Supply Chain Management is very much important nowadays in business and is regarded as that essential. In this report we are going to discuss about different enablers, drivers and obstacles in supply chain management in detail. What's needed to implement a successful supply chain management program? The first answer that springs to mind is technology. But as this survey of supply chain professionals makes clear, there's more to SCM than technology--and more to technology than information technology alone. Four key enablers that Comes into play. And all must be leveraged fully to make the promise of supply chain management a reality

Keywords: supply chain management,

1 INTRODUCTION
1.1 General information During the last two decades, the tourism industry has evolved and modernized considerably. The highly competitive environment of the tourism industry has forced tourism firms to look for ways to enhance their competitive advantage. There is now a demand for a better quality products, people want more specialized versions, quieter resorts, family-oriented holidays or niche markettargeted hotels. The developments in technology and transport infrastructure, such as jumbo jets, low- cost airlines and more accessible airports have made many types of tourism more affordable.SCM and logistics find a wide variety of applications in Travel & Tourism industry. The tourism which is a multi-sectoral industry Supply Chain Management finds application in various fields of travel & tourism sector: Hospitality, Food & Beverages, Transportation, Tour Operation, Airlines 1.2 Supply chain management in Tourism

1.3 ADVANTAGES OF SUPPLY CHAIN MANAGEMENT Working with suppliers to integrate sustainability into the supply chain can benefit tour operators, suppliers, customers and destinations. From a financial standpoint, improved sustainability can lower costs through greater operating efficiency, reduced waste generation, and reduced consumption of energy and water. Sustainability practices can also lead to increased revenue and shareholder value by generating more repeat business and attracting new business from customers that value good and social performance. A strong positive reputation as a company that cares about sustainability issues, coupled with improvements to the quality of the tourism experience provided to clients, can result in increased customer satisfaction and loyalty, strengthened brand value, enhanced publicity and marketing opportunities, and better acceptance by

local communities in destinations. Good performance and a high-quality, sustainable product can also help a tour operator reduce the risk of conflict or problems with suppliers, governments, staff and local communities, and improve its status as a respected partner in destinations. This may mean enhanced access to key business resources such as capital, the ability to develop products to meet growing market demand, improved relationships with governments, and a motivated and loyal staff. The costs and benefits of integrating sustainability criteria into the supply chain will vary for each company, depending on: Purchasing and contracting arrangements with suppliers; Availability of alternate suppliers in key destinations; Suppliers current levels of sustainability performance and potential for change; Barriers to sustainability, such as external factors A companys main sustainability and operational concerns and Resources available to implement and promote sustainability throughout the supply chain

1.4 COMPONENTS OF TOURISM SUPPLY CHAIN Tourist Althrough the tourist are of course consumers, they are more than that.Because the product is produced is on the spot, tourist can be also regrarded as the final producers .Also in terms of sustainability the consequences depend on the behavior of the tourist. Travel agencies A retail travel agent is a commissioned intermediary who serves as a sales outlet for tourism principals and wholesalers, and travel agent usually does not own services he or she sells to travelers .Unlike other retaillers outgoing travel agencies cannot stock the actual products instead of that they have information only in the form of brochures , leaflets, data and provide their expertise as consultants ,and travel agengies carry limited financial risk as they never purchase tourist product in advance. Tour operators Tour operators provide branding and distribution mechanism for a mix of tourism product produced by different principal .By contracting and combining the individual suppliers and products ,tour operators are to a certain degree of producers and manufactures of tourism products rather than simple distributers

Incoming travel agencies ( ground operators) Ground operators actors link between tour operators and principals, represent tour operators towards both tourist and local authorities they are also producers in the sense that they suggest specific combination of accommodation and attractions to tour operators .They normally deals with the hotel transfer ,overnight accommodation , sightseening, and they supervise the product delivery by local suppliers in addition to that ground handelers arrange guide for organized tours. Guides also plays an important role in scm of tourism industry ,they directly interact with the customes.its apart of value addition given to customers. Product suppliers tourism chain ends or begins with supplier servicers such as accommodation or attraction, these are the essential part of the tourism industry ,these services can be private ore public. Core of the tourism product consist of which are public .and the services offered by the private entrepreneurs accommodation is the main link, in addition to that there is a wide range of entrepreneurs like souvenir shops ,attraction parks offering a specific tourism services. Transportation is the another most important aspect of the tourism industry there are private as well as public transportation system and improvement in these transportation facilities will have direct effect on the tourism industry 1.5 Tourism service supply chain management (TSSC)

TSSC management mainly includes information management, process management, capability management and service performance 1) Information Management. Information management includes the collection and processing of information, which lays a good foundation for enterprises to make better decisions. Customers demands are undetermined and ephemeral, so information management is rather important. The application of information management in tourism services, first of all, is to know customers aim of this travel. The result of information management is an optimal travel schedule, based on detailed requires. Another role information management plays is to assure the information share of every spot enterprise in TSSC, and to guarantee the seamlessness of services interfaces, which requires enterprises make quick response to customers demands. 2) Process Management Process management is the ensemble of activities of planning and monitoring the performance of a process. Process management is a standardized systematic approach which structures end-to-end business processes and continually improves business performance for the purpose of the organization. It is a series of operations which meet customers needs, including flow analysis, resource allocation, scheduling, process quality and efficiency evaluation, process optimization, etc. From the customers leaving the point of origin to finally coming back to the original place, all links have to be designed scientifically and rationally. This requires businesses or organizations effective cooperation as well as travel agencies overall controls and management. In TSSC, in addition to a package of programs, travel agencies should provide a variety of programs as well as book corresponding services for the self-guided tourism clients. Because of the freedom in time and space, the self-guided clients may encounter different problems. Thus it is necessary to provide customers with multiple options to facilitate them to make a reasonable choice in specific situations. In the actual operation of TSSC, process management should be improved and optimized with the change of customers demands and the environment. Therefore, the enterprises should pay attention to the customers requirements and timely adjustment of process, ensure the seamlessness of service interfaces, and learn lessons from the actual operation to continually improve process management 3) Capability Management Capacity management refers to a series of functions in the enterprise management activities, including establishing production capacity limits or levels and measuring, monitoring and adjusting them, for better implementation of the entire production schedule. Here refers to each enterprises capability of finishing required tasks within the specified time in the supply chain. The service capacity of each enterprise determines the service satisfaction. Tourist attractions should be facilitated with relevant introductions about cultural knowledge and historical background, so that customers can get relaxed and learn

something after playing. Attractions should offer a good orientation, such as designing all kinds of human-oriented scientifically and reasonably, so the customers can play even in the absence of tour guides. The capacity to manage tourism enterprises is very important, because whether each related business or organization has the ability to complete the connection of the nodes of the tourism service supply chain or not, to some extent, would affect the operations of the entire supply chain and customer satisfaction. Therefore, travel agencies should be careful in the selection of functional enterprises, after fully understand the operational characteristics and inadequacy of enterprises and then determine whether it has the ability to complete the supply chain and integrate the resources of enterprises or not, so that mutual benefit and inter-firm winwin situation can be reached. 4) Service Performance In tourism services, the performance is mainly reflected in the customer satisfaction. Good performance is improved and developed gradually through long-term operation of the supply chain. It is embodied in several ways such as the sustainable development of the travel agencies, the enhancement of the citys image and the better development of the citys economy.
2.0 Supply chain application area in tourism Main area which supply chain management used in tourism industry are Transportation

Accommodation (HOTELS)

Groundhandlers

Food & beverages,crafts

Tour operators

2.1 TRASPORATATION

Transportation is essential for the existence of travel and tourism industry. Transport decreases the cost and time involved in bridging the distance gap, thus allowing social, cultural, sport, recreational and economic activities to take place at certain times and places and allowing people to participate in such activities. The requirements of transport users are determined by the relevant activities or their purpose for using transport. Modern information and communication, technology means that transport services can increasingly be adjusted to users needs and be integrated with their activities. This is particularly evident in the development of modern transport

systems, logistics systems and tourism services that strive to consistently deliver the required goods to the required place and time in line with users needs. The operation of transportation determines the efficiency of moving products. The progress in techniques and management principles improves the moving load, delivery speed, service quality, operation costs, the usage of facilities and energy saving. Transportation takes a crucial part in the manipulation of logistic. Reviewing the current condition, a strong system needs a clear frame of logistics and a proper transport implements and techniques to link the producing procedures. 2.2 ACCOMMODATION (HOTELS) In hotels is core part of tourism industry, where the tourist stay and have their food ,and its essential for the development of the tourism destination . and the logistics in the hotel are divided into three Pre-opening Logistics Mock-up room Logistics Post-opening Logistics 2.2.1 Pre-opening Logistics

Areas coming under pre-opening logistics and it is further divided in three FF&E (Furniture, Fixture & Equipment) OS&E (Operating Supply & Equipment) GS&E (Gaming Supply & equipment)

. 3.0 SUPPLY CHAIN MANAGEMENT TOOLS 3.1 Logistics

Logistics system has a more and more important position in the society activities Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers . Logistics involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging, and occasionally security . 3.2 Application of IT in logistics In the present world IT has an important role in daily life so the impact of IT also make a change supply chain management . In order to get more advantageous position and build a complementary and dependent relationship, networking industries, such as Yahoo and e-Bay, usually cooperate with logistics industries. The integration could reduce the middle-level procedures. The producers could immediately give the products over to the terminal customers. This could reduce expenses and also administer sources more efficiently.d how information can be processed and communicated, which in turn has led to increased interest in the study of interdependencies between organizations. The impact of IT is now transforming logistics into a catalyst for renewal. Implementation of IT plays a significant role in boosting up of TOURISM sector.

3.3. Good financial system By the implementation of efficient and effective supply chain management we can reduce cost in various areas Avoiding idle time of men & machine Implementing market oriented & customer focused strategies Thereby managing the return of investment 3.4 Outsourcing Travel and Tourism Companies are focusing on their core business the things do really well and where they have a differentiated advantage and outsource others which is an important marketing strategy.

4.0 ADVANTAGES OF SCM IN TRAVEL AND TOURISM SECTOR 1. Optimization of process and manpower across various elements 2. Reduction in working capital (warehousing, inventories) etc 3. Faster time to market, tracking of performance feedback etc 4. Cost Reduction by sharing of information on demand & current stock level 5. Building relationships that helps to retain customers. 6. Productivity advantage Mass Production, Concentrating on greater sales volume & there can be no doubt about the close linkage between relative market share and cost

4.1 CONCLUSIONS
Supply chain management has a very important role in various sectors of Travel & Tourism industry: Hospitality Sector, Shipping, Transportation, Tour Operation etc .Various techniques and tools implemented in SCM helps to plan and coordinate all desired levels of delivered service and quality at lowest possible cost. Thus in service industry like Travel & Tourism sector ,SCM helps to coordinate all desired levels of delivered service and quality at lowest possible cost. Thus in service industry like Travel & tourism sector ,SCM helps to coordinate non material activities necessary to the fulfillment of the services in a cost & customer effective manner that helps to deliver the Right Product in Right Quantity and right Condition at right Place at Right Time for Right Customer At Right Cost. And application of new technologies like IT in supply chain management also make the job more easier. 5.0 REFERENCES